Podcast
Questions and Answers
What false claim did Milton make about Nikola's capabilities?
What false claim did Milton make about Nikola's capabilities?
What alleged action did Milton take to misrepresent the Nikola One?
What alleged action did Milton take to misrepresent the Nikola One?
What reason did Milton give for his resignation from Nikola?
What reason did Milton give for his resignation from Nikola?
What was the immediate consequence for GM after the report on Nikola?
What was the immediate consequence for GM after the report on Nikola?
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How did Nikola's financial situation change after the allegations?
How did Nikola's financial situation change after the allegations?
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What was the primary claim made by Trevor Milton about the Nikola One truck during its unveiling?
What was the primary claim made by Trevor Milton about the Nikola One truck during its unveiling?
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What did Nikola Motor Company ultimately decide regarding the Nikola One truck?
What did Nikola Motor Company ultimately decide regarding the Nikola One truck?
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What was one of the key selling points for the Nikola company related to hydrogen fuel?
What was one of the key selling points for the Nikola company related to hydrogen fuel?
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What legal consequence did Trevor Milton face for misleading investors?
What legal consequence did Trevor Milton face for misleading investors?
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What did Nikola claim about investors during the time of the Nikola One's promotion?
What did Nikola claim about investors during the time of the Nikola One's promotion?
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How did Nikola raise funds during the hype of the Nikola One?
How did Nikola raise funds during the hype of the Nikola One?
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Which companies did Nikola work with to design and build their subsequent vehicles?
Which companies did Nikola work with to design and build their subsequent vehicles?
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What was stated about the functionality of the Nikola One truck by the company after its unveiling?
What was stated about the functionality of the Nikola One truck by the company after its unveiling?
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What peculiar claim did Milton make during his sentencing hearing?
What peculiar claim did Milton make during his sentencing hearing?
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What misrepresentation was made regarding the Nikola One during its promotion?
What misrepresentation was made regarding the Nikola One during its promotion?
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Which effect did the allegations against Milton have on Nikola's business decisions?
Which effect did the allegations against Milton have on Nikola's business decisions?
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What was the status of Nikola's stock following the fallout from the allegations?
What was the status of Nikola's stock following the fallout from the allegations?
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What did GM do in response to the report on Nikola?
What did GM do in response to the report on Nikola?
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What decision did Nikola Motor Company make regarding further investment in the Nikola One truck's functionality?
What decision did Nikola Motor Company make regarding further investment in the Nikola One truck's functionality?
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What was one of the claimed benefits of reducing hydrogen fuel costs according to the company?
What was one of the claimed benefits of reducing hydrogen fuel costs according to the company?
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What legal consequence did Trevor Milton face after being found guilty?
What legal consequence did Trevor Milton face after being found guilty?
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What was one reason Milton stated for the safety measures taken during the Nikola One unveiling?
What was one reason Milton stated for the safety measures taken during the Nikola One unveiling?
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How did Nikola Motor Company initially generate hype around the Nikola One?
How did Nikola Motor Company initially generate hype around the Nikola One?
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What did Nikola claim regarding the investors' knowledge of the Nikola One's capabilities?
What did Nikola claim regarding the investors' knowledge of the Nikola One's capabilities?
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Which of the following companies did Nikola rely on for assistance in developing subsequent vehicles?
Which of the following companies did Nikola rely on for assistance in developing subsequent vehicles?
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What stance does Nikola take regarding the relevance of the Nikola One's functionality?
What stance does Nikola take regarding the relevance of the Nikola One's functionality?
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What unexpected personal reason did Trevor Milton give for his resignation from Nikola during the sentencing hearing?
What unexpected personal reason did Trevor Milton give for his resignation from Nikola during the sentencing hearing?
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What significant development did Nikola halt in 2021, which resulted in a loss of $14 million?
What significant development did Nikola halt in 2021, which resulted in a loss of $14 million?
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How did Trevor Milton characterize his heritage during the sentencing hearing, and what context did he provide?
How did Trevor Milton characterize his heritage during the sentencing hearing, and what context did he provide?
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What turn of events followed the allegations against Nikola regarding the promotional practices for its Nikola One?
What turn of events followed the allegations against Nikola regarding the promotional practices for its Nikola One?
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What was revealed about the Nikola One's promotional video during the investigation into Milton's actions?
What was revealed about the Nikola One's promotional video during the investigation into Milton's actions?
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What did Nikola Motor Company pivot towards after deciding against further investment in the Nikola One's functionality?
What did Nikola Motor Company pivot towards after deciding against further investment in the Nikola One's functionality?
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What was one of the major claims related to hydrogen fuel costs that Nikola aimed to achieve?
What was one of the major claims related to hydrogen fuel costs that Nikola aimed to achieve?
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What was the outcome for Trevor Milton after being found guilty of misleading investors?
What was the outcome for Trevor Milton after being found guilty of misleading investors?
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How did Nikola raise funds during the promotional period of the Nikola One?
How did Nikola raise funds during the promotional period of the Nikola One?
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What did Nikola state regarding the knowledge of investors about the Nikola One's technology during its promotion?
What did Nikola state regarding the knowledge of investors about the Nikola One's technology during its promotion?
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What action was taken by Nikola regarding the prototype performance at events?
What action was taken by Nikola regarding the prototype performance at events?
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What did Nikola claim about its functional prototype of the successor to the Nikola One?
What did Nikola claim about its functional prototype of the successor to the Nikola One?
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What was Nikola's approach in utilizing external resources for the development of its subsequent vehicles?
What was Nikola's approach in utilizing external resources for the development of its subsequent vehicles?
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Study Notes
Nikola Deception
- Nikola Motor Company founder Trevor Milton presented a prototype of the Nikola One truck in December 2016, claiming it was fully functional.
- However, Nikola later admitted the truck never functioned fully, instead opting to prioritize the production of the Nikola Two.
- The Nikola One's ability to function or not is irrelevant to the company, as they now possess a functional prototype of the Nikola Two.
- Nikola One was used to raise funds, which in turn were used to hire experienced companies like Bosch and Iveco, to help design and build subsequent vehicles.
- Nikola also claimed to have found a way to reduce the cost of hydrogen fuel to 4perkilogramfromtheregularpriceof4 per kilogram from the regular price of 4perkilogramfromtheregularpriceof16, which would allow them to create a network of hydrogen refueling stations similar to Tesla's Supercharger network, but provided little evidence to back up this claim.
- Trevor Milton, the company's founder and former CEO, has been sentenced to four years in prison and ordered to pay a $1 million fine for misleading investors about the company's technology.
- Milton was accused of staging a video to make it appear as if the Nikola One was driving independently when it was actually rolling downhill.
- The company's stock is currently trading at less than $1 a share.
- General Motors canceled a planned equity deal with Nikola following the revelation.
- Nikola has since scaled back its ambitions, shutting down work on its electric ATV and motorboat, costing the company $14 million.
Trevor Milton
- Trevor Milton claimed that his resignation from Nikola was not due to fraud allegations but because of his wife's illness.
- He also claimed to be a quarter Cherokee and gave an emotional recounting of "ethnic cleansing" against the tribe during his sentencing hearing.
Nikola One Truck
- Nikola Motor Company founder Trevor Milton unveiled a prototype of the Nikola One truck in December 2016, portraying it as fully functional.
- Nikola admitted that the Nikola One truck never got to fully function.
- Nikola pivoted to working on its next vehicle, the Nikola Two.
- Nikola's investors knew the technical capability of the Nikola One at the time of their investment.
- The functionality of the Nikola One truck is irrelevant as Nikola now has a functional prototype of the Nikola Two.
- Milton claimed the Nikola One truck was fully functional and worked.
- Nikola used the hype around the Nikola One to raise funds.
Hydrogen Fuel Costs
- Nikola claimed to have figured out how to cut the cost of hydrogen fuel to below $4 per kilogram.
- The current market price of hydrogen fuel is around $16 per kilogram.
- That could enable Nikola to build a network of hydrogen filling stations similar to Tesla's SuperCharger network.
- There was little evidence to back up the claim.
Trevor Milton Sentencing
- Milton was sentenced to four years in prison after a jury found him guilty of misleading investors about the company’s technology.
- Milton was also ordered to pay a $1 million fine.
- Milton was found guilty of staging a video showing the Nikola One semi driving under its own power, while it was actually rolling downhill.
Fallout from the Report
- GM backed out of the equity deal with Nikola.
- Nikola halted work on its electric ATV and motorboat, costing the company $14 million.
- Nikola's stock is now trading for less than $1 a share.
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Description
Explore the timeline and controversies surrounding the Nikola Motor Company, focusing on the Nikola One truck's claims and the subsequent developments leading to the Nikola Two. Delve into the allegations against founder Trevor Milton and uncover the details of their hydrogen fuel strategy.