The founder and chief executive officer of electric truck manufacturer Nicola Corporation (NKLA) announced having voluntarily stepped down from his role as the CEO and a board member of the Arizona based company.
His resignation was prompted by allegations from a forensic financial research firm Hindenburg Research which said Milton had been spreading false statements about the company’s technology in order to grow and secure partnerships.
“Nikola is truly in my blood and always will be, and the focus should be on the Company and its world-changing mission, not me. So I made the difficult decision to approach the Board and volunteer to step aside as Executive Chairman. Founding Nikola and growing it into a company that will change transportation for the better and help protect our world’s climate has been an incredible honor,” said Milton.
Following the accusations, the Securities and Exchange Commission and Department of Justice have taken over the matter further saying they are looking into claims accusing Nicola of misleading investors.
The stock of the company has been performing relatively well this year, in the first week of May the stock started rallying from $13 to hitting a 52 week high of $93.99 in June.
Nicola’s board confirmed having received and accepted Milton’s resignation further appointing fellow board member and ex-vice chairman of General Motors Co. (GM) Stephen Girsky as the new executive chairman.
Later on Milton took on Twitter expressing his dissatisfaction with allegations leveled against him. “I intend to defend myself against false allegations leveled against me by outside detractors,” tweeted Milton.