Trevor Milton, the Elon Musk wannabe, is jailed for fraud
The former CEO of Nikola, Trevor Milton, has been found guilty of lying about the development of the company's electric trucks.
In 2018, the CEO of Nikola, an upstart company seeking to make viable electric- and hydrogen-powered lorries, released a promotional video of its prototype Nikola One truck, which appeared to drive under its own power, says Tech Crunch. In reality, it was rolling down a hill. That video sparked investigations by Hindenburg Research, which called the company a fraud.
In December 2023, that drama came to a close when Trevor Milton, the disgraced founder and former CEO of the company, was found guilty of lying to investors about the development of Nikola’s electric trucks in order to inflate the stock price and was sentenced to four years in prison.
Milton, 41, had ambitions to be the next Elon Musk. His company, like Musk’s, was named after inventor Nikola Tesla – and like Musk was known for making grandiose promises on social media. He became an overnight billionaire, says CNBC, when he took Nikola public in 2020 through a special purpose acquisition company (SPAC), formed to raise cash for a takeover – a process over which regulators have tightened up the rules.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
But there’s a very definite if thin line between “faking it till you make it” – a common strategy in tech – and fraud. The court ruled that Milton had crossed that line, and the judge and jury were unmoved by Milton’s tearful pleas for mercy.
Milton, who grew up in Utah in a Mormon family, claimed his statements resulted from “deeply held optimism”, and that his Mormon faith meant he was incapable of telling deliberate falsehoods. The judge told him that “the law does not grant a pass for good intentions”.
The company’s intentions of upending its industry remain, and it has sought reimbursement from Milton for costs and damages. But the road to success from here is steeper than the hill its trucks were rolled down. Investor analytics company Macroaxis says the firm is more than likely to go bankrupt, and in August the firm had to recall most of its battery-electric trucks when it was revealed they are at risk of bursting into flames, says Ars Technica. The shares now trade for less than $1, down from a peak of more than $60 in June 2020. But present CEO Steve Girsky remains upbeat. We’re “in it for the long haul”, he said.
This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.
Related articles
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
Jane writes profiles for MoneyWeek and is city editor of The Week. A former British Society of Magazine Editors editor of the year, she cut her teeth in journalism editing The Daily Telegraph’s Letters page and writing gossip for the London Evening Standard – while contributing to a kaleidoscopic range of business magazines including Personnel Today, Edge, Microscope, Computing, PC Business World, and Business & Finance.
She has edited corporate publications for accountants BDO, business psychologists YSC Consulting, and the law firm Stephenson Harwood – also enjoying a stint as a researcher for the due diligence department of a global risk advisory firm.
Her sole book to date, Stay or Go? (2016), rehearsed the arguments on both sides of the EU referendum.
She lives in north London, has a degree in modern history from Trinity College, Oxford, and is currently learning to play the drums.
-
Family investment companies explained: how the ultra wealthy shield their money from the taxmanWealthy families are increasingly turning to family investment companies to keep more of their money away from HMRC – but what are these arrangements and how do they work?
-
How to boost your pension pot as 35% of UK over 50s face huge retirement savings gapOver 50s are facing a later life with little to no funds - but there are steps you can take now to boost your pot.
-
Yoshiaki Murakami: Japan’s original corporate raiderThe originator of Japanese activism, Yoshiaki Murakami, was disgraced by an insider-trading scandal in 2006. Now, he's back, shaking things up
-
Albert Einstein's first violin sells for £860,000 at auctionAlbert Einstein left his first violin behind as he escaped Nazi Germany. Last week, it became the most expensive instrument not owned by a concert violinist
-
Who is Rob Granieri, the mysterious billionaire leader of Jane Street?Profits at Jane Street have exploded, throwing billionaire Rob Granieri into the limelight. But it’s not just the firm’s success that is prompting scrutiny
-
David Ellison: America's new media mogulDavid Ellison is building a mighty new force in old and new media. Critics worry that he will prove to be a Trumpian patsy. Is that fair?
-
Alok Sama on AI and how to invest in the future of technologyInterview Alok Sama, the former president and chief financial officer of Masayoshi Son’s investment vehicle SoftBank Group International, explains AI’s potential
-
Pierre-Édouard Stérin wants to make France great againConservative billionaire Pierre-Édouard Stérin is seeking to lead a political and spiritual renaissance across the Channel. The planning looks meticulous
-
Jair Bolsonaro, the 'Trump of the Tropics', sentenced to 27 years in prison for staging a coup in BrazilJair Bolsonaro, the US president’s friend and fellow right-wing populist, has been handed a 27-year prison sentence in Brazil. But the drama looks far from over
-
Prabowo Subianto: Indonesia’s Deng XiaopingPrabowo Subianto, like his Chinese hero, is taking power in his 70s with big ambitions for his country. Yet many view his return to politics with dread