Nikola Motors – Ex-Chief Executive Officer facing charges


October 15, 2021

Image titel:


Nikola Motors – Ex-Chief Executive Officer facing charges

Trevor Milton, © Nikola

Trevor Milton (l.), © Nikola

Former CEO, company founder and major shareholder (with an estimated 20 per cent of the company still owned) Trevor Milton has been charged with making “misleading, false statements directly to the investing public” via social media and television, print and podcast interviews, according to an SEC investigation. A court has frozen assets worth US$ 100 million belonging to Trevor Milton. However, the company has nothing to do with it. Construction work at the Coolidge plant is progressing according to plan. In parallel, there were various cooperation agreements with distributors as well as service points for repairs – now already 116. In addition, Nikola is expanding the sector of consumables – electricity supply contracts for battery-electric trucks as well as for the in-house production of hydrogen. The H2 infrastructure is being built in parallel.

Nikola is massively expanding its distribution structure: 51 locations in nine US states are added, raising the total number of locations to 116. Nevertheless, the share price has recently fallen again, but this is normal, especially since the short sellers are still betting massively on falling prices.
I have a feeling that the lawsuit against the ex-chief executive will not have any effect on the current development at Nikola for the time being (without commitment), even if the further procurement of capital is psychologically burdened in the short term. I expect additional analyses from investment banks and analysts. Elon Musk, CEO of Tesla, also had to pay US$ 20 million in one case for tweets that influenced the share price, as did Tesla, since the company had tolerated the behaviour of its own boss without intervention. Price turbulence arose here, which was dramatically higher compared to Nikola and its shares. For me, all this is a sideshow.


Reports on the second quarter
Approximately US$ 143.2 million was the loss (minus US$ 0.36/share) as a logical consequence of the expansion of the Coolidge factory as well as tooling and truck development costs. By the end of this year, this production site should theoretically be able to produce 2,400 trucks, and by 2023, 20,000 units per year should be able to roll off the production line. By the end of the year, there should still be US$ 500 to 530 million in the account. It is interesting to note that the vehicle manufacturer has entered into a financing agreement with Tumin Stone Capital. Thereafter, Nikola can sell up to US$ 300 million worth of new shares to Tumin at a price and time determined by Nikola. I see this more as an ATM programme, whereby Nikola can issue new shares step by step, while Tumin can hold them or resell them on the stock exchange. Theoretically, Nikola will still have over US$ 800 million available when this funding is realised.
In addition, it was announced that the first hydrogen filling station will soon be put into operation and that further cooperations are planned, including in H2 production and with other service and sales partners. The video showing a fully loaded truck driving up a slope with its own engine power was probably directed at the short sellers.

My conclusion: Nikola addresses the right market and will go its way. It would be good if, once shareholder Hanwha has sold its five per cent, another strategic investor were to step in. And since Ballard has the former CEO of CNH on board as a new board member, Nikola should consider buying the stacks from Ballard in the future. I stand by the classification: Buy on bad news.

Risk warning
Every investor must always be aware of his own risk assessment when investing in shares and also consider a sensible risk diversification. The FC companies and shares mentioned here are small and mid caps, i.e. they are not standard stocks and their volatility is also much higher. This report is not a buy recommendation – without commitment. All information is based on publicly available sources and, as far as assessment is concerned, represents exclusively the personal opinion of the author, who focuses on a medium- and long-term valuation and not on a short-term profit. The author may be in possession of the shares presented here.

Author: Sven Jösting, written August 12th, 2021

Here are interesting and current articles on the topic of hydrogen – stocks and the stock market!

Economic prospects for companies in the hydrogen sector | Future, stocks & hydrogen companies on the stock exchange and more…

Which hydrogen companies will prevail in the competitive market in the long term? Get tips and cartwheels and learn more about risks or opportunities. Our stock market specialist and expert author Sven Jösting reports critically, independently and competently.

May 16 2024

New CFO for H-Tec Systems

Electrolyzer manufacturer H-Tec Systems underwent restructuring at the turn of the year and...
May 16 2024

One-man show continues to grow

Hydrogeit Verlag celebrates its 20th anniversary The Hydrogeit Verlag publishing house has been...
May 15 2024

Hydrogen for the post-coal era

Nuclear energy also to power electrolysis in Hungary In May 2021, Hungary published its national...
May 15 2024

Hüwener to lead OGE

Thomas Hüwener will become the new management spokesman for transmission system operator OGE from...
May 15 2024

Accelerating expansion and reducing hurdles

German government adopts power plant strategy It took a long time, but now it's here – the power...
May 15 2024

Brussels approves IPCEI projects

3rd funding wave for H2 infrastructure measures The decision has finally come. In mid-February...
May 15 2024

Apex becomes H2APEX

Apex, headquartered in Rostock, Germany, is continuing to make big strides forward in the hydrogen...
May 06 2024

Lübesse Energie wants to become a pioneer

Project realization despite Exytron bankruptcy Originally at the end of 2023, an “emissions-free...
May 02 2024

Bischof-Niemz appointed to Enertrag board

Project developer Enertrag has appointed Tobias Bischof-Niemz to the board. From the beginning of...
Apr 30 2024

“Cool, what you’re doing in Germany”

“Today is a good day for industry location Germany, climate protection and sustainable jobs in our...
Apr 30 2024

DWV shortens its name

As of January 2024, the DWV has a slightly shorter name. Instead of being called the German...
Apr 30 2024

Changes at CEP

New board, new members and a new structure – that’s the news in the latest press release from the...
Apr 18 2024

Plug Power – Price jumps with many questions

The Plug share price fell quickly to under 3 USD (2.50 USD at low) and then rose again to over...
Apr 17 2024

Siemens Energy – Light at the end of the tunnel

Siemens Energy is on the right track, as the latest figures show. Although the wind subsidiary...
Apr 17 2024

Nikola Motors – Outlook speaks for the company

The press conference in February 2024 on the fourth quarter results and the entire year 2023 and,...
Apr 17 2024

Hyzon Motors – Strong patent position

Hyzon Motors will start production of 200‑kW modules for commercial vehicles in the USA in the...
Apr 17 2024

FuelCell Energy – Carbon capture as a growth story?

FuelCell Energy has with SOFC fuel cell power plants built its own capacities for clean energy...
Apr 16 2024

Hydrogen economy gaining speed

Trade fair guide for Hannover Messe 2024 AI and hydrogen are the focus of this year's Hannover...
Apr 16 2024

Politicians with an open ear for hydrogen

Optimism at the H2 Forum in Berlin A good 450 participants gathered at the specialist conference...
Apr 16 2024

Gas producers are the winners of the H2 ramp-up

The major international gas companies such as Linde, Air Liquide and Air Products have always been...


Leave a Reply