Electric vehicle maker Nikola Corp. (NKLA) has agreed to pay a $125 million U.S. penalty to the U.S. Securities and Exchange Commission (SEC) for misleading statements its founder and former chief executive officer made to investors.
Nikola’s former CEO, Trevor Milton, deceived investors about the company’s technological advancements, in-house production capabilities and truck reservations, according to an SEC statement. Nikola settled the SEC’s allegations without admitting or denying any wrongdoing.
The settlement, which Nikola said last month it was expecting, brings the company a step closer to moving past the controversy surrounding its founder, who stepped down in September 2020.
Nikola said it was “pleased” with the SEC settlement and that “the company has now resolved all government investigations.”
The company said it would pay the fine in five installments over the next two years and reiterated its intention to seek reimbursement from Milton for the costs and damages in connection to the investigation and other government probes.
Milton is currently facing criminal and civil charges for his statements. He asked a federal judge last week to throw out an indictment accusing him of misleading investors, saying his comments were merely promotional speech in support of the company.
Nikola is vying for a slice of the budding market for electric vehicles with plans to produce both battery-electric and fuel-cell semi trucks. It also aims to establish a hydrogen fueling network.
The Phoenix, Arizona-based manufacturer’ stock has dropped below $10 U.S. a share after topping $79 U.S. last year.
