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Trevor Milton, the founder of Nikola Corporation (NASDAQ: NKLA) voluntarily stepped down as executive chairman and a member of the company's Board of Directors amid continuing allegations of fraud, scrutiny of its technology, and his actions.

The Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) are currently investigating allegations by Hinderburg Research that Nikola is another case of smoke-and-mirrors. The short-seller accused Milton of making an "ocean of lies" about the company's technology to establish partnerships with top automakers such as General Motors Company (NYSE: GM) desperate to catch up to Tesla Inc (NASDAQ: TSLA). 

Last week, Milton denied the short-seller's accusations and welcomed regulators' investigations into Nikola.

Milton intends to defend himself from accusations

In a statement on Sunday, Milton said he "made a difficult decision to approach the Board and volunteer to step aside as executive chairman."

He also stated, "Nikola is truly in my blood and always will be, and the focus should be on the Company and its world-changing mission, not me. Founding Nikola and growing it into a company that will change transportation for the better and help protect our world's climate has been an incredible honor."

In a post on Twitter, Milton wrote, "I intend to defend myself against false allegations leveled against me by outside detractors.

Nikola is experiencing a wild ride in the stock market

On June 4, Nikola started trading on NASDAQ as a Special Purpose Acquisition Company (SPAC). NKLA shares traded as much as $37 each and then settled around $34 each during its market debut. 

The company's initial public offering (IPO) was successful, reaching a valuation of $12 billion, higher than Ford Motor Company (NYSE: F). Milton's net worth increased to nearly $5 billion based on his stake in the company. 

This was an amazing phenomenon since Nikola has not generated any revenue since its inception. It only has few “concept” prototype vehicles that appeared to still be under construction.

On September 8, Nikola's stock price increased 45% after GM announced their merger deal, in which the Detroit-based automaker acquired 11% ownership in the Phoenix-based electric truck maker.GM's stock price rose 11%, driven by its announcement. 

Two days after the GM deal,  Hindenburg Research released its damning report detailing its damning allegations against Milton and Nikola. NKLA shares plunged in the days following the short-seller's allegations.