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Investing.com -- Shares of Nikola Corp (OTC:NKLAQ) surged 14.7% following the announcement that the company’s founder, Trevor Milton, claimed to have received a full pardon from former U.S. President Donald Trump. The pardon, according to Milton’s social media post on Thursday, is said to be "full and unconditional."
Milton, who was convicted of fraud for misleading investors about the hydrogen technology in Nikola’s vehicles and other aspects of the business, expressed gratitude for the support against what he termed "lies" and the "destruction" caused by short sellers. He also alluded to what he called "the greatest comeback story in America," which has led to speculation among investors about his potential return to the beleaguered company.
Nikola Corp, which faced serious allegations of fraud raised by short-seller Hindenburg, resulting in a DOJ investigation, declared bankruptcy earlier this year. Milton was sentenced to four years in prison in late-2023 after a court found him guilty of several charges, including claims that he had developed proprietary batteries and built a pickup from scratch, whereas he had actually purchased them.
The stock’s movement today reflects investors’ reactions to the news of Milton’s pardon, which could potentially impact his involvement with Nikola Corp going forward. However, it is important to note that the company has faced significant challenges, including its bankruptcy declaration and the fallout from the fraud allegations.
As of now, there has been no independent confirmation of the pardon from other sources, and the White House has not issued any statements on the matter. The market’s response may change as more information becomes available. Investors are advised to follow the story closely as it develops.
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