Nikola Stock Falls After Founder and Chairman Milton Departs Amid Short-Seller Allegations
Shares of electric-truck start-up Nikola (NASDAQ: NKLA) fell over 25% in premarket trading on Monday morning after the company said that its founder and chairman Trevor Milton had resigned overnight.
Milton has been under pressure from allegations leveled by short-seller Hindenburg Research, which alleged in a report on Sept. 10 that Milton had misled investors with false claims about the company's technology.
"I asked the Board of Directors to let me step aside from my roles as Executive Chairman and a member of Nikola Board of Directors," Milton wrote in a statement posted to his Twitter account. "The focus should be on the Company and its world-changing mission, not me. I intend to defend myself against false allegations leveled against me by outside detractors."
Source Fool.com
