U.S:- Nikola Corp’s founder Trevor Milton has stepped down as executive chairman, as it battles allegations from a short-seller that it misled investors and automakers. Stephen Girsky, a former vice-chairman of General Motors Co and a member of Nikola’s board, has been named as the chairman, effective immediately. Short-seller Hindenburg Research alleged that Nikola misled investors over its technology, sending the company’s shares spinning lower. Hindenburg had said it had gathered enough evidence to show that Milton made false statements about possessing proprietary technology to form partnerships with large automakers.
Nikola rejected the accusations and threatened to take legal action against the short-seller. 11per cent stake in Nikola for about US$2 billion and agreed on a partnership to make electric pickup trucks to take on Tesla Inc. Nikola is relying on California-based manufacturer Romeo Power Technology to make batteries for one of its prototype electric trucks, months after touting its own “game-changing” battery, the Financial Times reported last week.