Trevor Milton, the founder of Nikola—the once-promising hydrogen trucking startup that has since filed for bankruptcy—has been pardoned by former President Donald Trump, the White House confirmed to TechCrunch.
Milton was convicted in October 2022 on one count of securities fraud and two counts of wire fraud for making misleading claims about Nikola’s progress to investors. He was sentenced to four years in prison in December 2023 but remained free on a $100 million bond while appealing the sentence.
Nikola’s Bankruptcy and the Timing of the Pardon
Milton’s pardon comes at a pivotal moment, just weeks after Nikola filed for Chapter 11 bankruptcy. The company, once a high-flying name in the electric and hydrogen vehicle industry, has been working with a Delaware bankruptcy court to find a buyer, with hopes of closing a sale by mid-April 2025.
“It is no wonder why trust and confidence in the Justice Department has eroded to nothing. I wish judges would stop believing whatever the prosecutors feed them so Americans could trust the justice system again.”
Nikola’s Rise and Fall
Milton founded Nikola in 2014, but the company gained significant attention in 2020 when it became one of the first electric vehicle (EV) startups to go public through a special purpose acquisition company (SPAC). The stock soared after General Motors (GM) announced a $2 billion investment in Nikola in September 2020.
However, Nikola’s success was short-lived. Just days after GM’s announcement, Hindenburg Research published a damning report accusing Nikola and Milton of fraud. The report alleged that Milton had misled investors about the company’s technology and product development.
The allegations led to a Securities and Exchange Commission (SEC) investigation, and GM ultimately walked away from the $2 billion deal. Facing mounting pressure, Milton resigned from Nikola. However, during his 2023 sentencing hearing, he claimed that he stepped down to care for his ailing wife rather than due to the scandal.
Legal Troubles and Financial Consequences
In July 2021, prosecutors from the Southern District of New York charged Milton, alleging that he had made “false and misleading statements” about Nikola’s technology in order to inflate the company’s stock price. They claimed Milton used social media, TV, print, and podcast interviews to deceive retail investors.
Following his conviction, a judge ordered Milton to pay $168 million to Nikola after an arbitration case between the two parties. That money was expected to help fund Nikola’s bankruptcy settlement.
Milton’s Next Move: A Documentary on Nikola
Now that he has been pardoned, Milton has announced plans to release a documentary that he claims will reveal the “true story” behind Nikola’s rise and fall.
With Nikola’s fate now in the hands of the bankruptcy court, and Milton free to tell his side of the story, the hydrogen trucking scandal remains one of the most dramatic collapses in recent corporate history.
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