No one requested another season of the soap opera starring Nikola Corp. NKLA and its infamous founder, Trevor Milton. Yet, here we find ourselves amid the courtroom drama unfolding with no end in sight.
Proceeding to Court for the Saga Continues
In the ongoing chronicles of Nikola Corp. and Trevor Milton, the company found itself unable to retrieve a $167.7 million arbitration award last November. Milton, the convicted mastermind behind the turmoil, made a move in January to have the award nullified.
Recently, Nikola counter-sued Milton in the U.S. District Court for the District of Arizona, seeking a restraining order under the Arizona Uniform Fraudulent Transfer Act. The intention was to halt Milton from offloading or relocating his company shares until his debts were settled.
Court Refuses Nikola’s Restraining Order Request
The Phoenix court rejected Nikola’s plea, citing a lack of evidence and skepticism over the company’s ability to substantiate its claims. Nonetheless, the court mandated Milton to clarify the circumstances surrounding the sale of over 37 million Nikola shares through his M&M Residual LLC from Feb. 22 to March 13.
Milton’s Nikola stake reduced to under 13.3 million shares, a drastic decline from his previous billion-dollar valuation on paper.
Vote Manipulation Allegations Surface
Nikola speculates Milton may have distributed shares to existing shareholders to endorse five nominees he is pushing for board positions at Nikola. Milton proposed this alternate slate for June’s board assembly, prompting Nikola to preemptively urge shareholders to vote against the nominees.
Nikola decried the nominees as lacking public company experience and criticized their deficiency in augmenting the existing board’s expertise. Milton evaded the court’s discovery demands for Wednesday, displaying a brazen disregard for legal obligations.
Nikola’s Exasperation Evident in SEC Filing
In an SEC submission on Tuesday, Nikola lambasted its disgraced founder as a felon attempting a hostile takeover in collaboration with buyers of Nikola assets, notably the defunct Badger electric pickup project.
When Nikola divested the Badger and Powersports units to EMBR, a firm largely owned by Dave Sparks (aka “Heavy D”) and attorney Cole Cannon, Milton’s involvement was prohibited due to the damage inflicted on Nikola’s reputation. Legal action is pending against EMBR, Cannon, Sparks, and Milton for violating the non-engagement clause.
The Charge Ahead: Electric Trucks Making Waves in the Industry
The Pioneering Role of Rizon in Class 4 and 5 Truck Market
Medium-duty electric trucks, specifically Class 4 and 5 models, are gaining momentum with less complexity in terms of charging infrastructure. According to Alex Voets, general manager of Velocity EV, Rizon, the exclusive distributor of Daimler Truck’s brand, is leading the pack with 15 dealerships across multiple states. Voets aptly describes Rizon as a ‘gateway drug to electrification,’ easing apprehensions around kilowatt hours and charging requirements.
Rizon: Setting the Bar as the Sole Electric Competitor
Rizon’s cabover models from Japan are entering Velocity EV showrooms, facilitating education to dispel myths regarding battery-powered driving. Offering versatility between alternating current (AC) and direct current (DC), Rizon trucks are setting a high standard in the Class 4-5 chassis cab segment. While Isuzu Motors Ltd. plans to introduce a 2025 Class 5 truck, Rizon remains the dominant player in this niche, allowing various upfitting options from cargo boxes to dump bodies.
Fueling the Momentum Towards Electric Truck Adoption
Similar to the initial resistance faced by electric cars, electric trucks are experiencing a gradual uptake due to factors like the delayed implementation of the California Advanced Clean Fleets rule. However, Alex Voets predicts a tipping point on the horizon as more electric trucks hit the streets, offering tangible proof of their efficiency and effectiveness in real-world operations.
Motiv Power Systems, boasting 15 years of experience in crafting electric chassis for medium-duty trucks, remains a stalwart in the industry. Founder Jim Castelaz’s confidence in Motiv’s capabilities, combined with evolving regulations and incentives for electric trucks, positions the company strongly in the competitive landscape.
General Motors Forges Ahead with Hydrogen Fuel Cell Technology
With over fifty years of hydrogen fuel cell development under its belt, General Motors is making significant strides in the commercial sphere, catering to power-intensive projects and garnering traction with potential clients.