Nikola chief steps down amid fraud claims

Trevor Milton, the founder of commercial electric vehicle start-up Nikola Motor, has stepped down from his position as executive chairman of the company following claims by short-seller Hindenburg Research the firm is an "intricate fraud built on dozens of lies".

The Hindenburg Research report, which was released on September 10, came just a day after General Motors announced it had signed a $US2 billion ($A2.8 billion) deal with Nikola to produce its Badger electric pickup.

The model is slated for release in North America in 2023, with Nikola previously stating the Badger will be offered to other markets in due course, including Australia.

Now the allegations have raised doubts over Nikola and its projects, which span not just the Badger but a number of electric truck models, with the company's share price falling sharply this month.

In a Nikola statement issued overnight, Milton said he was stepping aside to allow the firm to continue to pursue its goals.

"Nikola is truly in my blood and always will be, and the focus should be on the company and its world-changing mission, not me," he said.

"So I made the difficult decision to approach the Board and volunteer to step aside as Executive Chairman. Founding Nikola and growing it into a company that will change transportation for the better and help protect our world's climate has been an incredible honour."

Milton has been replaced by fellow Nikola board member, and former GM Vice Chairman, Stephen Girsky.

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Hindenburg Research says it has gathered "extensive evidence – including recorded phone calls, text messages, private emails and behind-the-scenes photographs – detailing dozens of false statements by Nikola founder Trevor Milton".

Nikola hit back at the report the day after its publication, claiming it was the work of an "activist short-seller" – an investor that ultimately profits from a stock dropping in value.

"Yesterday, an activist short-seller whose motivation is to manipulate the market and profit from a manufactured decline in our stock price published a so-called "report" replete with misleading information and salacious accusations directed at our founder and executive chairman," said a Nikola company statement.

"To be clear, this was not a research report and it is not accurate. This was a hit job for short sale profit driven by greed," the statement continued.

The allegations are now reportedly being examined by the US Securities and Exchange Commission and the Department of Justice.

The announcement of the GM partnership and the publication of the Hindenburg Research report are the latest chapters in what has been a rollercoaster ride for Nikola shareholders since its IPO (initial public offering) in early June 2020.

Milton's personal fortune skyrocketed after the IPO. The 39-year-old entrepreneur's personal stake in the company was estimated at around $US1 billion before it went public, then shot to nearly $US5 billion after the IPO, based on his share ownership.

Nikola's share price surged after the GM announcement, then dropped significantly following the Hindenburg Research report, dropping sharply again following Milton's resignation.

The company's share price was trading at $US27.58 yesterday (September 21), having reached $US79.73 on June 9.

Bloomberg reports that Milton's personal fortune has since fallen to around $US3.3 billion ($A4.6 billion).