By June 9, Nikola’s market capitalization had reached $29 billion when day-traders’ enthusiasts went crazy, seeking to participate in this supernatural phenomenon.
On Monday, the company announced in an astonishing presentation to the SEC that CHIEF executive and founder Trevor Milton, who is e immersed in allegations of fraud, was absent.
What is certain is that this whole Nikola phenomenon was only imaginable in an intentionally blind and far-fetched market.
The shares of electric truck manufacturer Nikola (NASDAQ: NKLA) that did not build a singles truck, not even a working prototype of its own generation, began trading on June 4, 2020, through an opposing merger with a special purpose acquisition company (SPAC). ) VectoIQ Holdings: the rise of SPAC is another phenomenon that shows how crazy this market has become. By June 9, Nikola’s capitalization at the market site had reached $29 billion, as day traders’ enthusiasts went crazy, looking to enrich themselves with this supernatural phenomenon.
Then began the sinking, collapsing in all its aspects, the sinking of the hype.
On Monday morning, the company announced in a surprising presentation to the SEC that CEO and founder Trevor Milton, who is immersed in allegations of fraud, is absent, and the way it was made, that is, as of yesterday, September 20, suggests that this is an orchestrated shot. , disguised as a “volunteer”. Some excerpts from the presentation to the SEC:
The Executive hereby voluntarily and differently waives, and the Company accepts your resignation, from your place of work as Executive Chairman of the Company and from all positions as a worker and workplace of the Company and its subsidiaries (the “company group”), and your position as an advisor on the Board of Directors and director of one of the company’s subsidiaries , adding all the committees of the latter in force on the date of entry into force and without any additional action being necessary.
There are some minor provisions in the repository:
To help maintain capital and help the Company retain a world-class ability to succeed the executive, the Executive relies on the following:
(i) one hundred per cent of the 4,859,000 performance-based percentage sets (the “UAR”) awarded to the executive on 21 August 2020,
(ii) any right or claim to participate in a two-year consultation agreement with an annual amount of $1,000,000 and
(iii) any other rights and rights that the executive may have or claim under the employment contract, as set forth in this contract.
Milton forced to announce his departure on social media:
After the effective date, the executive will temporarily review the executive’s job prestige on social media, adding LinkedIn and other social media sites, so that the executive is no longer known for holding a position within the company or being part of the board.
Milton will need to get approval before posting something on social media about the company:
Before using a social networking site, blog or other online platform to make statements about the corporate organization or one of its respective workers or administrators (a “statement”), the executive should consult with the Executive Board and the Chief Legal Officer of the Executive Company that it would possibly be quite obligated to realize that the Statement is consistent with the official’s obligations to the Company.
And that’s what Milton did on Monday morning, when he tweeted, possibly with the approval of that legal director: “I’ll cheer you on from the bench. Your biggest fan. “
Nikola’s stock fell 22% to $26. 59, and many true believers still think it’s a purchase. Shares have dropped 65% since their final peak of $79. 73 and 70% since their intraday peak of $93. 99: