Biplab Das 
New York prosecutors are pushing for an approximately 11-year prison term for Trevor Milton, the founder of Nikola, after his conviction in October 2022 on charges of wire fraud and securities fraud. Prosecutors allege that Milton deliberately misled retail investors with false claims about Nikola’s technology, beginning in 2019.
Sentencing scheduled amid investor losses
Scheduled for sentencing on December 18, Milton faces a hearing where investors may share their losses. The once-prominent electric- and hydrogen-powered truck maker, Nikola, experienced a soaring market cap exceeding USD 30 billion in June 2020.
Prosecutors seek substantial sentence
On Tuesday, prosecutors urged U.S. District Judge Edgardo Ramos to impose a “substantial sentence,” aligning with an 11-year recommendation from the probation department. Drawing a parallel with Elizabeth Holmes, founder of Theranos, prosecutors highlighted similarities in defrauding investors and emphasized false claims about Nikola’s semitruck, comparing it to Holmes’ misrepresentation of blood analyzers.
Milton objects to comparison with Holmes
Milton, in response, has urged the judge to avoid likening his case to Holmes, stating that Nikola is a “real company with real products.” He asserted that his statements stemmed from a “deeply-held optimism” in the company he founded in 2014. Despite his conviction, Milton is seeking probation rather than a prison term.
Prosecutors’ allegations and trial details
During the trial, prosecutors presented evidence that Milton used social media and news-media interviews to disseminate false and misleading information. Among the claims was the assertion that Nikola had developed an electric- and hydrogen-powered “Badger” pickup entirely from scratch. The prosecution argued that Milton’s deceptive practices amounted to defrauding investors.
Potential implications for Nikola
The sentencing, if in line with prosecutors’ recommendations, could significantly impact Nikola, which had once garnered substantial attention and investment. The case has raised questions about corporate governance, transparency, and accountability within the electric vehicle sector.
Milton’s defence and company’s standing
Milton, despite the legal challenges, continues to assert Nikola’s legitimacy as a genuine company with tangible products. His request for probation suggests a belief in the positive aspects of the company’s operations. Meanwhile, investors and industry observers await the court’s decision, anticipating potential consequences for Nikola’s reputation and future prospects.
The impending sentencing of Trevor Milton underscores the gravity of the charges against the Nikola founder. The case serves as a cautionary tale for the broader industry, emphasizing the importance of truthfulness and transparency in dealings with investors and stakeholders.
