The board of electric truck maker Nikola Corporation has announced a major shakeup with the company’s CEO, Trevor Milton, stepping down and being replaced by Chairman Mark Russell.
The move was announced by the board on Monday in a press release, amidst increased scrutiny of the company and its CEO’s past false claims about the company’s technology. Milton, a vocal proponent of sustainable energy, will remain as a director of the board and as a major investor.
In his role as chairman, Russell will be responsible for leading the company in its continued effort to build out its fleet of zero-emission electric trucks and hydrogen trucks. Russell brings a wealth of executive experience to the role, having held various leadership positions at renowned companies such as Microsoft, eBay, and American Express.
The news was met with concern by Nikola stakeholders, most notably some major investors who have questioned the board’s decision to appoint an executive with vast experience in traditional industries but without specific experience in the electric vehicle (EV) space.
The change in leadership comes in the wake of an ongoing short-seller battle between hedge funds shorting Nikola stock and those steadfastly behind the company. Since the news of Milton’s departure, critics have pointed out that he has consistently manipulated the story of Nikola’s progress by making false claims about alleged partnerships and a timeline of success that never materialized.
Although there is some skepticism in the market, the team at Nikola is optimistic about the board’s decision and the future of the company under Russell’s watch. Nikola board member Steve Girsky, former vice-chairman of GM, said “Mark brings the right skills and experience to be an effective CEO of Nikola. He has a long track record of success in building great consumer-facing businesses. He is the right leader for Nikola at this stage.”
The company is now turning its attention to getting its EV batteries and trucks to market. Nikola has announced an ambitious timeline for the launch of its vehicles and plans to begin production within the next eighteen months. With the right leadership in place, Nikola is hoping to make significant strides in the EV market and become a major player in the sustainable energy space.
