SEC DROPS CASE AGAINST NIKOLA CEO MILTON! WHAT ARE THEY HIDING?!

U.S. Securities and Exchange Commission Litigation Release No. 26397, dated September 11, 2025.

The Securities and Exchange Commission (SEC) has dismissed its civil enforcement action against Trevor R. Milton, the former CEO of Nikola Corporation. This dismissal was filed as a joint stipulation between the SEC and Milton, indicating an agreement to end the case. The SEC stated that this decision was made in its discretion and does not set a precedent for other cases.

In Plain English

The government agency that watches over the stock market (the SEC) has decided to stop its lawsuit against the former boss of a company called Nikola. They both agreed to end the case. The SEC said this was their choice and doesn't mean they'll drop other lawsuits.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

1. Allegations of Misrepresentation The SEC alleged that Trevor R. Milton, as founder and CEO of Nikola Corporation, made numerous false and misleading statements about the company's technology and production capabilities. These statements were made to investors and the public.
2. False Claims About Nikola's Technology Specifically, the SEC claimed Milton falsely stated that Nikola had "built" a "fully functional" prototype of its "Nikola One" electric semi-truck. He also allegedly claimed the company had "proprietary" technology that made its trucks "work like a truck" and that it had "in-house" capabilities to manufacture key components.
3. Misleading Production Capabilities Milton also allegedly misrepresented Nikola's production capacity and progress. He claimed the company was on the cusp of manufacturing its "Nikola Badger" pickup truck and that it had "billions of dollars" in pre-orders, despite lacking the necessary technology and production infrastructure.
4. Deceptive Demonstrations The SEC pointed to a video demonstration of a Nikola truck that allegedly showed it driving, but the complaint stated the truck was "trundled" down a hill and "did not under its own propulsion."
5. Investor Deception These alleged misrepresentations were made to induce investment in Nikola Corporation. Investors relied on these statements when making decisions to buy Nikola stock and other securities.

The Enforcement Action

The Securities and Exchange Commission announced the dismissal, with prejudice, of its civil enforcement action against former Nikola CEO Trevor R. Milton. The dismissal was filed as a joint stipulation between the Commission and Milton. The SEC stated that the decision to seek dismissal was made in the exercise of its discretion and does not necessarily reflect the Commission’s position on any other case. No costs or fees were awarded to either party.

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