Remember Nikola (NKLA)? The electric truck maker that everyone counted out this year (after its founder Trevor Milton was indicted for defrauding investors purportedly) delivered its first truck last week — and the stock is up.
Nikola made the announcement of the delivery via Twitter (TWTR) and signaled that there is “more to come.” Earlier, in the week before the announcement, Nikola reached a settlement with the US Securities and Exchange Commission, agreeing to pay $125m to settle charges that it defrauded investors by deliberately misleading them about its products, technical capabilities, and business prospects.
According to the SEC, the proceeds from the settlement will be distributed to the “victim investors” who were misled by Nikola and its founder Trevor Milton. According to Nikola, it has “taken action to seek reimbursement” from Milton who, himself, pleaded not guilty to the SEC’s charges.
Why it matters
Shares of NKLA popped by almost 18% last Thursday after news of the delivery broke. After hitting a record high of more than $90 after its 2020 IPO, the stock traded below $20 for most of this year.