Nov 4 (Reuters) – Nikola Corp (NKLA.O) mentioned on Thursday it was working with U.S. regulators to pay a $125 million penalty to settle a cost in opposition to its founder, because the electric-truck maker works on ramping up manufacturing.
The U.S. Securities and Alternate Fee (SEC) had charged Trevor Milton for utilizing social media to repeatedly mislead traders in regards to the firm’s know-how and capabilities, reaping “tens of millions of dollars” on account of his misconduct. learn extra
Shares of Nikola, which additionally reported third quarter monetary outcomes, had been up 13% at $14.38 in early buying and selling.
The corporate mentioned the settlement, which was but to be authorized by a vote of SEC commissioners, might be paid over two years.
The Phoenix, Arizona-based startup added that it intends to search reimbursement from Milton for prices and damages in reference to these investigations.
A spokesperson for Milton was not instantly out there to remark.
Milton had stepped down as Nikola’s govt chairman final September, two weeks after short-seller Hindenburg Analysis labeled the corporate a “fraud” and mentioned it made many deceptive statements about its know-how.
Subsequently, he was additionally criminally charged with defrauding traders by mendacity to them in regards to the firm’s merchandise and know-how. learn extra
As the corporate works on closing this chapter, Nikola mentioned it had began constructing pre-series vans in its Coolidge, Arizona facility and nonetheless appears to ship up to 25 vans to sellers and prospects by December 2021.
In September, Nikola had signed a take care of Germany’s Bosch Group to construct Bosch fuel-cell energy modules at its facility in Coolidge for 2 of its vans powered by hydrogen fuel-cells. learn extra
The corporate additionally mentioned that it had constructed seven hydrogen fuel-cell vans which can be being examined in Germany and the USA and can progress to street launch by the top of 2021.
Reporting by Subrat Patnaik in Bengaluru, additioanl reporting by Akash Sriram and Chavi Mehta; Enhancing by Shailesh Kuber
Our Requirements: The Thomson Reuters Trust Principles.