Why Nikola Stock Sank in July
The U.S. government formally filed charges in July against Trevor Milton, the founder and former CEO of Nikola (NASDAQ: NKLA), and investors fled the stock as a result. Shares of Nikola lost 34.3% in July, according to data provided by S&P Global Market Intelligence, as investors fret about what the future holds for the once-promising electric truck start-up.
The charges filed against Milton were no surprise for investors familiar with the Nikola story. The company burst onto the scene last year with designs for green trucks and pickups, but the excitement quickly faded following a devastating report that short-seller Hindenburg Research released last September. Milton resigned soon after, and investors in the months since have been worried about how much of a business there is behind the hype.
Nokola prototypes. Image source: Nikola.
Source Fool.com
