The founder of U.S. electric-truck manufacturer Nikola Corp has resigned following accusations of fraud, which triggered a stock collapse and a regulatory probe.
Trevor Milton has quit his post as executive chairman of the embattled group as it faces allegations from a short-seller that it hoodwinked auto companies and investors, Nikola announced on Sunday.
Milton's resignation came just days after Nikola Corp became the focus of a probe by U.S. regulators after the pivotal short-seller disclosure.
In a statement, Nikola said that it had accepted Milton's resignation. Nikola board member Stephen Girsky, who was formerly the vice chairman at General Motors, will fill the void left by Milton effective immediately, Reuters reported.
Milton said he would defend himself against false accusations and that the focus now should be on Nikola and not him. "I made the difficult decision to approach the Board and step aside as executive chairman," Reuters quoted him as saying.
The company has battled a rocky period in the wake of a brief stock increase after General Motors' surprise move earlier this month to acquire a $2 billion share and produce Nikola's new truck. GM received a cash-free 11 percent equity stake in the company in an attempt to accelerate its own vehicle electrification program.
Established by Milton in 2015 to build pick-ups that run on electric batteries, Nikola has yet to build anything but made headlines when the group approved a deal with GM and German engineering company, Bosch.
In a blistering revelation this month, short-seller Hindenburg Research claimed that Nikola deceived investors over its touted technology, sending Nikola's stocks into a tailspin.
According to Hindenburg, it had compiled substantial evidence to prove that Milton resorted to fallacy with regards to acquiring proprietary technology to create partnerships with major auto companies.
Based on the Bloomberg Billionaires Index, Milton – who owns 35 percent of Nikola – is valued at around $9 billion, making him the 188th wealthiest person in the world.
