Nikola Founder Milton Sells $48.6 Million of EV Maker's Stock

Nikola Founder Trevor Milton sold $48.6 million of the EV maker's shares to a buyer the company didn't identify in return for unspecified goods and services.
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Nikola  (NKLA) - Get Report shares fell sharply on Monday after the electric truck maker disclosed that its founder, Trevor Milton, last week sold $48.6 million of its stock.

He sold 3.5 million shares for $13.89 apiece, the company said .

The stock recently traded at $12.94, down 7%. It has dropped 47% over the past six months.

That drop came after Hindenburg Research in September published a report  arguing that the company and Milton misled investors. Milton resigned as chairman shortly afterward. In February, Nikola said that Milton made some inaccurate statements, but that Hindenburg did as well.

Interestingly, Milton didn’t receive cash for his stock sale. 

“The reported disposition was made in exchange for non-cash consideration in the form of a credit to [Milton’s] account with the purchaser for goods and services provided by the purchaser in the amount of $48,615,000,” the SEC filing said.

The filing didn’t identify the buyer or the goods and services that Milton received. He’s still Nikola’s largest shareholder, with 20%, or 79 million, of its shares, Barron’s reports.

Last month, South Korea’s Hanwha Group said it intended to sell half its stake in Nikola. An SEC filing said Hanwha planned to sell about 11 million shares of Nikola then valued at about $180 million.

Also in March, Nikola filed with the SEC to sell $100 million of shares in a secondary offering. It said it would use the funds for general purposes.

They include potentially completing the Phoenix company's Arizona manufacturing facility, and developing electric and fuel-cell commercial and hydrogen-station infrastructure.