Nikola is a company with a bright future ahead of it because the world is moving towards zero-emission vehicles. But the recent developments in the company, have led the stakeholders to believe otherwise.
Trevor Milton is the face of Nikola in the same way as Elon Musk is the face of Tesla. Stepping down as the chairman of Nikola might not be a very smart move by him.
Nikola had been accused of short selling by Hindenburg, and amidst these crises, Trevor had to step down. He was certain that if he steps down as the chairman of the company, there is a slight chance that the company may survive.
General Motor Corporation is a reputable name and they suffered from these allegations as well. They had an ongoing deal with Nikola and this kind of allegation reflects badly on their company profile.
GMC, despite being dragged into this feud, went through with the deal. This reassures the stockholders to remain calm and invest in Nikola.
Milton is leaving the company for a reason and that is to protect the company amidst these crises. This will, however, put the company in jeopardy at points where people look up to Milton to carry the company to success.
Russell and Brady are the new faces of the company. They are entrusted to take the name of Nikola and present positively after a fall in the recent events.
The involvement of the US Securities and Exchange Commission was a point of concern for stakeholders. But there are points where the allegations reflect badly on Hindenburg as well because they were the ones benefitting from the price drop.
Nikola is in pursuit of multiple projects and these projects are often communicated by Milton himself. This made it difficult for the investors to keep track of the projects which were to be launched.
Overall, the entire company is at stake given the investigations are underway. Though the GMC going through with the agreement can mean a lot to Nikola, but it is not enough.