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USA Today
28-03-2025
- Business
- USA Today
Trump pardons Trevor Milton, founder of bankrupt truck maker Nikola convicted of fraud
Trump pardons Trevor Milton, founder of bankrupt truck maker Nikola convicted of fraud Show Caption Hide Caption Trump selects Alice Johnson as 'pardon czar' Alice Johnson, pardoned by Donald Trump during his first term, has been appointed the president's "pardon czar." Straight Arrow News WASHINGTON ― President Donald Trump granted a full and unconditional pardon Thursday to Trevor Milton, founder of hydrogen-powered truck maker Nikola Corp., clearing the charismatic start-up leader of wrongdoing for his 2022 conviction of federal crimes related to defrauding investors. Milton, who was represented in his case by Attorney General Pam Bondi's brother, said Trump personally called him to deliver the news. "I am free. The prosecutors can no longer hurt me. They can't destroy my family. They can't rip everything away from me. They can't ruin my life, " Milton said in a video posted on X announcing the reprieve. "It is done. It's over." A White House official confirmed Milton's pardon to USA TODAY. Milton was sentenced to four years in prison in 2023 after a jury found him guilty of lying to investors about the company's technology. He was convicted in October 2022 on one count of securities fraud and two counts of wire fraud, and acquitted on an additional securities fraud count. More: Nikola executive chairman Trevor Milton resigns amid federal probe into Nikola's claims Milton called Trump "an amazing man that cared enough to call me personally to tell me how much of an injustice this all was, done by the same offices that harassed and prosecuted him." Milton, former executive chairman of the Phoenix-based start-up company, was accused by federal prosecutors of misleading the public about the capability of its hydrogen semi-trucks and battery systems. Prosecutors said Milton's company did not develop its own batteries as claimed but instead bought the batteries. Trump told reporters Friday pardoning Milton was "highly recommended by many people," adding that Milton was "taken advantage of" and treated unfairly by the U.S. Southern District of New York, where he was prosecuted. "I don't know him, but they say it was very unfair," Trump said, arguing that Milton was targeted because he's a Trump supporter. "You don't realize ‒ this was a vicious group of people that were in this office before us." Brad Bondi, the attorney representing Milton, and the brother of Pam Bondi, did not return a message seeking comment. General Motors partnered with Nikola to produce an electric pickup truck, but GM later scaled back the alliance amid the allegations against the company. Nikola last month filed for Chapter 11 bankruptcy protection and announced it would pursue a sale of its assets. Contributing: Reuters. Reach Joey Garrison on X @joeygarrison.
Yahoo
28-03-2025
- Business
- Yahoo
Former Nikola Motor founder Trevor Milton pardoned by President Trump
The Nikola saga took a new turn Thursday night when Trevor Mlton, founder, former executive chairman and CEO of Nikola Corp., was issued a full and unconditional pardon from President Trump. Milton founded Nikola in 2014 and later led a SPAC-backed initial public offering in June 2020. The company was once valued at $30 billion and had a multibillion dollar contract with General Motors in place. However, Nikola's and Milton's fortunes reversed following fraud allegations against Milton by short-seller Hindenburg Research in September 2020. Shortly after, Milton resigned from the company and was later convicted of securities and wire fraud in 2022. Milton was sentenced to four years in prison in December 2023 by the U.S. Attorney's Office, Southern District of New York, for making false and misleading statements to retail investors to drive demand for the appealed the conviction and was allowed to remain free on bail with no surrender date. In a post on the X platform, Milton said President Trump personally called to inform him of the pardon. Milton added, 'This pardon is not just about me—it's about every American who has been railroaded by the government, and unfortunately, that's a lot of people. It is no wonder why trust and confidence in the Justice Department has eroded to nothing… I saw firsthand the tactics they use to guarantee convictions. I am incredibly grateful to President Trump for his courage in standing up for what is right and for granting me this sacred pardon of innocence.' The pardon was part of a larger effort outlined in President Trump's second inaugural address, where the president pledged to end what he saw as the political weaponization of the Justice Department. The Southern District of New York and its high conviction rate were cited as additional reasons, with 94.3% of cases tried in the Southern District resulting in a guilty plea and only 5.7% going to trial, according to 2023 release adds, 'The striking similarities between Milton's case and those brought against President Trump highlight systemic issues within the justice system, particularly within the Southern District of New York.' While Milton appears to be fully cleared, the company he founded, Nikola Corp, filed for bankruptcy protection in February. Looking ahead, the release notes that Milton is set to launch a documentary titled 'The Trevor Milton Saga: Conviction or Conspiracy.' The post Former Nikola Motor founder Trevor Milton pardoned by President Trump appeared first on FreightWaves.
Yahoo
06-03-2025
- Automotive
- Yahoo
Hydrogen hopes shudder amid spate of bankruptcies
Hydrogen trucking startups have faltered, leaving legacy manufacturers to determine whether the energy source has a long-term future in hauling cargo. Three startups that built fuel cell systems or upfitted them into commercial vehicles — Nikola Corp., Hyzon Motors Inc. and Quantron AG ― have all declared bankruptcy over the past six months. Nikola, which sold more than 200 fuel cell trucks last year, cited adverse market and macroeconomic conditions when it filed Chapter 11 bankruptcy last month. Those companies had hoped to follow in the path of Tesla as novel zero-emission vehicle plays, said Sam Abuelsamid, vice president of market research at Telemetry Agency. Sign up for the weekly Automotive News Mobility Report newsletter for the latest developments at the intersection of transportation and technology. Amid a higher-interest rate climate and a shift in venture-capital interest toward artificial intelligence, 'there was just no way to raise the capital needed to hang on until they were self-sustaining,' he said. Collectively, the companies' troubles represent a setback to hopes that hydrogen could mature into a clean energy source, particularly in the heavy-duty vehicle applications, in which fuel cell technology offers shorter fueling times and longer ranges compared with battery-electric counterparts. Legacy manufacturers retain a keen interest in hydrogen. Toyota Motor Corp. unveiled its third-generation fuel cell system in February. The company intends to introduce it in heavy-duty commercial vehicles across the globe. Hyundai Motor Corp. has 30 of its Xcient-branded fuel cell trucks operating in the Bay Area and 21 more were deployed in December at the manufacturer's Metaplant America in Georgia. Backed by $237 million in government funding, Daimler Truck AG intends to test 100 of its GenH2 trucks on German roads starting at the end of 2026. Volvo Trucks is developing trucks with combustion engines that run on hydrogen. On-road testing is expected to begin next year. Some of those manufacturers remain bullish on utilizing fuel cells in passenger vehicles, although that tiny market is shrinking. Global fuel-cell EV sales reached a peak of 20,704 vehicles sold in 2022, according to SNE Research statistics. Total sales tumbled to 12,866 in 2024, a drop the firm attributed to dwindling sales of the Hyundai Nexo in the Korean market. Hyundai anticipates unveiling a revamped Nexo this year and expanding its fuel cell commercial vehicle lineup. Toyota has produced its Mirai since 2014, though sales have been scant. Approximately 28,000 have been sold across 30 countries, the automaker said in February. On the trucking side, Those manufacturers can rely on sales of their existing diesel trucks and their dealership networks to fund fuel cell developments, said Conrad Layson, senior alternative propulsion analyst at AutoForecast Solutions. But startups and legacy players alike will be hamstrung by the lack of hydrogen infrastructure across the U.S., he said. The startups 'were on the right path,' Layson said. 'But the biggest challenge remains infrastructure.' Only 54 public hydrogen fueling stations exist in the U.S., according to Department of Energy records. Only six of those cater to medium- or heavy-duty vehicles, according to a July 2024 report from Resources for the Future, a nonprofit research and policy firm. But the lack of stations is only one part of the shortfall. Distribution represents a more underappreciated and nettlesome challenge, Layson said. The nation's pipeline networks require new coatings and fittings to reliably carry hydrogen, and those enhancements are 'nonexistent,' he said. 'In order to make hydrogen economically viable, you have to engage in a massive upgrading and replacement of the existing gas pipe network through the country,' he said. Countries such as China and South Korea have made building out hydrogen networks national priorities. China intends to have approximately 1,200 hydrogen stations online by the end of the year, with a concentration along freight corridors, according to Interact Analysis. South Korea has 159 and Japan has 161, according to the firm's estimates. Infrastructure projects in the more fledgling. In October 2023, the Energy Department awarded $7 billion in funding to seven U.S. regions expected to form 'Hydrogen Hubs,' clusters of infrastructure designed to support hydrogen supply and demand in multiple industries. Yet hydrogen's broad prospects under the Trump administration remain a question mark — and dependent on the fate of a tax credit included in the Inflation Reduction Act known as 45V. The credit is worth as much as $3 per kilogram of clean hydrogen produced. But 'most folks who would otherwise apply for this credit will wait until there is less uncertainty,' said Alan Krupnick, a Resources for the Future senior fellow. 'I think the financial community is also probably waiting for uncertainties to be resolved.' The industry has sought to keep the tax credit. On Feb. 18, dozens of organizations and companies, including General Motors and Hyundai, signed a letter to congressional leadership that said 45V is 'essential' for President Trump's 'bold energy dominance agenda.' Billions in potential investments could be at risk from uncertainty surrounding the future of 45V, the letter said, and jobs could shift from the U.S. to other countries. 'We need to ensure that we do not miss this hydrogen moment,' the letter said. The moment has been fleeting for the likes of Nikola, Hyzon and Quantron. In many ways, their struggles parallel those of startups in the light-duty EV space such as Rivian and Lucid, Abuelsamid said. They all went public at a time investors' appetite in zero-emission technology 'almost completely dried up,' he said. 'Their timing was terrible.' Rivian and Lucid found suitors. Volkswagen will invest as much as $5.8 billion in Rivian in a new joint venture focused on software development. The deal closed in November. Lucid received $1.5 billion from Saudi Arabia's Public Investment Fund in August. Such benefactors have been harder to come by in the commercial-vehicle sector, in part because sales volumes are lower, and the ability to achieve economies of scale are more difficult, Abuelsamid said. 'As a result, the ability to reach breakeven is more difficult,' he said. Trucking is not the only transportation sector where hydrogen hopes have been dashed by recent headwinds. Universal Hydrogen, a startup developing conversion kits that would allow aircraft to run on hydrogen fuel, closed in June after depleting its funding. More recently, in February, global manufacturer Airbus said it has delayed plans to develop a hydrogen-powered aircraft until the middle of next decade. Have an opinion about this story? Tell us about it and we may publish it in print. Click here to submit a letter to the editor.
Yahoo
07-02-2025
- Business
- Yahoo
Nikola Considers Bankruptcy, Capping EV Maker's Wild Ride
(Bloomberg) -- Nikola Corp. is exploring a possible bankruptcy filing, according to people familiar with the matter, following a tumultuous period in which the electric truck maker has swung between stock-market darling and scandal-plagued enterprise. Citadel to Leave Namesake Chicago Tower as Employees Relocate NYC Sees Pedestrian Traffic Increase in Congestion-Pricing Zone Transportation Memos Favor Places With Higher Birth and Marriage Rates State Farm Seeks Emergency California Rate Hike After Fires How London's Taxi Drivers Navigate the City Without GPS The company is working with a law firm and financial advisers to prepare the potential Chapter 11 filing, which would protect it from creditors amid a cash crunch, the people familiar said, asking not to be identified because they are not authorized to discuss the matter publicly. The plans aren't final, and could change, the people said. A representative for Nikola said it was 'evaluating a variety of options' — including 'a financing as part of a financial restructuring' — in response to questions from Bloomberg. The Wall Street Journal earlier reported on the potential filing. The company's shares dropped as much as 28% to 54 cents in post-market trading on Thursday. Nikola told Bloomberg in late January that it was working 'relentlessly' to raise capital in order to stave off a sale of the company. The company has been on a dramatic journey since it went public in 2020 through a deal with a special purpose acquisition company. It initially became a favorite of retail investors, who bid up the stock. But it soon crashed and the company cycled through multiple CEOs after its founder Trevor Milton resigned. He was later convicted of defrauding investors because of his misleading descriptions of the company's technological progress. Some of Nikola's financial trouble stems from issue with its electric big-rig trucks, which were recalled in 2023 after engine fires halted sales. The company has also faced weak sales. In the first nine months of 2024, Nikola sold about 200 of its hydrogen-electric semi trucks. In October, it said that it had sufficient cash to fund obligations through the first quarter, but not beyond. At that time, Steve Girksy, the chief executive officer, said on a call with investors that Nikola was 'actively talking to lots of potential different partners who value what we do and value what we've built.' Nikola has pursued various paths to bolster its cash, going through several rounds of layoffs. In December it filed to sell up to $100 million of stock. --With assistance from David Welch and Jeremy Hill. Orange Juice Makers Are Desperate for a Comeback Believing in Aliens Derailed This Internet Pioneer's Career. Now He's Facing Prison Inside Elon Musk's Attack on the US Government Amazon and SpaceX Want In on India's Satellite Internet Market Elon Musk Inside the Treasury Department Payment System ©2025 Bloomberg L.P.
Bloomberg
07-02-2025
- Automotive
- Bloomberg
Nikola Considers Bankruptcy, Capping EV Maker's Wild Ride
Industries Transportation Electric truck maker has struggled with numerous scandals The company says it is looking at 'financial restructuring' Nikola Corp. is exploring a possible bankruptcy filing, according to people familiar with the matter, following a tumultuous period in which the electric truck maker has swung between stock-market darling and scandal-plagued enterprise. The company is working with a law firm and financial advisers to prepare the potential Chapter 11 filing, which would protect it from creditors amid a cash crunch, the people familiar said, asking not to be identified because they are not authorized to discuss the matter publicly. The plans aren't final, and could change, the people said.
