Trevor Milton: The Controversial Nikola Founder Receives Trump’s Pardon

Trevor Milton's Pardon

Trevor Milton, the founder of electric vehicle startup Nikola, was pardoned by President Donald Trump late Thursday, as confirmed by the White House on Friday. Milton had been sentenced to four years in prison for exaggerating the potential of his technology, a move that could eliminate hundreds of millions of dollars in restitution that prosecutors sought for defrauded investors.

The Trial and Allegations

During Milton's trial, it was revealed that a company video showcasing a prototype truck driving down a desert highway was actually of a nonfunctioning Nikola truck that had merely been rolled down a hill. Despite his conviction, Milton had not been incarcerated due to pending appeals.

Milton's Response

In a statement on social media, Milton expressed his gratitude, stating, "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.”

Nikola's Downfall

Nikola, once a rising star on Wall Street, was enmeshed in Milton's scandal and filed for Chapter 11 bankruptcy protection in February, shortly after announcing potential cash shortages. Prosecutors characterized Milton as a con man, claiming he falsely represented that Nikola had developed its own revolutionary truck, which was actually a General Motors product.

Impact on Investors

Milton resigned in 2020 amid fraud allegations, leading to significant losses for investors as doubts grew about his claims of producing zero-emission 18-wheel trucks. In 2021, Nikola paid $125 million to settle a civil case with the SEC without admitting wrongdoing, highlighting the ongoing repercussions of Milton's actions on the company and its stakeholders.