Why did Nikola’s founder require a presidential pardon?
had no motor, roll it down a hill, post a video of it, and claim it’s running under its own power? This questionable strategy was adopted by Nikola founder Trevor Milton to attract investment and take his company public. The Securities and Exchange Commission (SEC) intervened, investigating the alleged market manipulation. Even after Milton’s resignation, both the SEC and the Department of Justice (DOJ) pursued legal action, resulting in a $125 million settlement by Nikola. Milton faced his own charges of deceiving investors and falsifying information regarding the business.
During Milton’s sentencing, a federal judge remarked on his misuse of social media to promote the company with misleading information. Consequently, Milton was fined $1 million and sentenced to four years in prison. Despite this, Milton’s significant contribution of $1.8 million to President Donald Trump’s re-election campaign drew attention, leading to his subsequent pardon by the President in March 2028. Trump justified his decision by stating that Milton was unfairly targeted for supporting his re-election campaign. Milton expressed gratitude to Trump for granting him a “sacred pardon of innocence.”
Following these events, in February 2025, Nikola filed for Chapter 11 bankruptcy protection, further tarnishing the company’s reputation and highlighting the repercussions of Milton’s actions. The situation raised questions about corporate integrity, accountability, and ethical leadership, particularly within the highly competitive and often scrutinized field of technology startups.
This case serves as a cautionary tale for entrepreneurs and investors alike, underscoring the importance of transparency, honesty, and ethical practices in business operations. It also sheds light on the role of regulatory bodies like the SEC in safeguarding investors and maintaining market integrity. The Nikola scandal highlights the potential risks associated with unchecked ambition, misinformation, and the pursuit of financial gain at all costs.
As the dust settles on this controversy, the aftermath of Nikola’s downfall serves as a stark reminder of the consequences of ethical lapses and deceit in the corporate world. The story of Nikola and its founder’s need for a presidential pardon may fade from the headlines, but its lessons will endure as a cautionary tale for future generations of entrepreneurs and business leaders on the importance of upholding integrity and transparency in all dealings.