Nikola Corporation (NASDAQ:NKLA)
Nikola’s stock fell after it was revealed that Mr. Milton had made misleading statements regarding Nikola’s technology. According to the business, 500 Nikola battery-powered big vehicles might be delivered this year.
On Monday, the jury selection procedure for former Nikola Corporation (NASDAQ:NKLA) CEO Trevor Milton’s US fraud trial will begin in Manhattan. Milton is being probed for allegedly deceiving and misrepresenting investors about the technology behind the producer of hydrogen-powered vehicles starting in November 2019. He is also accused of scamming the Utah ranch seller, who agreed to include Nikola stock options in the sale price after trusting Milton’s claims.
Milton pleaded not guilty to two counts of wire fraud and two counts of securities fraud. His defense will undoubtedly be that he had no intention of defrauding investors and that other top Nikola officials approved of Milton’s remarks regarding Nikola. The experiment is planned to last four to five weeks. NKLA, on the other hand, settled an SEC fraud investigation last year by paying a $125 million civil penalty without admitting guilt.
NKLA, an electric vehicle manufacturer located in Arizona, announced plans to raise $400 million through a public offering. The firm is presently battling production constraints, increased commodity prices, and logistical challenges, causing its liquidity profile to deteriorate and requiring it to seek a financial injection.
Last week, star Chinese EV producers NIO Inc. (NIO), Li Auto (LI), and XPeng Inc. (XPEV) provided August delivery updates. Although NIO witnessed a rise in deliveries compared to July levels, XPeng and Li Auto reported a decrease in sales from one month to the next. The supplies were delayed by the Chinese economy’s weakening and supply chain snarls caused by COVID-19’s reappearance and subsequent lockdowns. LI was the most impacted, with August deliveries decreasing more than 50% year over year and month.
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