In December 2023, Milton was sentenced to four years in prison. He was convicted of making fraudulent claims about Nikola’s production capabilities.
Prosecutors labeled him a “con man” presenting evidence that a company video of a Nikola truck supposedly driving on a highway was, in reality, a prototype rolling downhill without power.
Nikola’s current CEO testified that Milton “was prone to exaggeration” when pitching the company’s technology to investors. Further investigations revealed that Milton falsely presented a General Motors truck as Nikola’s revolutionary vehicle.
Struggles in Business Operations
Nikola Motor has struggled to scale its business, particularly in EV truck production.
The company produced only 83 trucks in the third quarter of last year and recorded a net loss of nearly $200 million. In the second quarter, it produced 77 trucks but faced a net loss of $134 million.
With these financial losses mounting, Nikola filed for bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware. The company has also filed a motion seeking approval to conduct an auction of the business.
Plans for the Future
Despite the bankruptcy filing, Nikola Corp. intends to maintain limited service and support for its vehicles.
