Nikola Founder Trevor Milton denies allegations of fraud amid GM merger and SEC, DOJ investigations

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Mary Chan, the Chief Operating Officer, and Managing Partner of VectoIQ, LLC. worked for GM in 2012 as President, Global Connected Consumer.

General Motors and Nikola ink a landmark deal 

On September 8, Nikola and General Motors announced a merger. The deal would give GM 11% ownership in Nikola. In turn, GM is going to produce Nikola’s wild fuel cell pickup truck by the end of 2022.

Both companies’ shares jumped on with the announcement. Nikola was trading up 45% and GM was up 11% in pre-market trading.

The deal also will net GM a $2 billion stake in Nikola, which was looking like the hottest vehicle start-up since Tesla. GM will also gain one seat on Nikola’s board of directors in exchange for “in-kind services”.

Hindenburg Research report alleges fraud

On September 10, Hindenburg Research released its report filled with allegations of fraud and deception by Nikola.

Among other things, it says, in 2016 when the Nikola One truck was first displayed it wasn’t functional. Far from having a working power system, it was secretly powered by an extension cord from up under a stage.