Nikola ($NKLA) has reached a settlement with investors over claims that it misled them about the functionality of its hydrogen-electric trucks, production timelines, and business prospects.
In 2020, Nikola was accused of falsely claiming its hydrogen-electric trucks were fully functional and exaggerating billions in pre-orders that were largely non-binding. As these claims surfaced, $NKLA fell nearly 76%, and Nikola faced a lawsuit from investors.
June 4, 2020 – Nikola went public via a SPAC merger, claiming its hydrogen-electric trucks would transform the industry.
August 2020 – Founder Trevor Milton stated Nikola had developed breakthrough proprietary battery and hydrogen technology.
September 10, 2020 – Hindenburg Research released a report alleging Nikola exaggerated the functionality of its vehicles.
September 21, 2020 – Milton resigned as Executive Chairman amid fraud allegations, and $NKLA fell 19% that day.
May 2, 2023 – Investors filed a lawsuit claiming Nikola misled them about its technology and financial outlook.
March 2025 – Nikola agreed to settle the case with investors.
Nikola positioned itself as a revolutionary hydrogen-electric truck manufacturer, presenting itself as a major competitor to Tesla.
In 2016, Nikola promoted its Nikola One semi-truck as fully operational.
In 2018, the company released an “In Motion” video showing the truck fully working. Nikola also claimed it had billions in pre-orders, and assured investors it could produce hydrogen at a fraction of industry costs.
On September 10, 2020, Hindenburg Research published a report exposing that Nikola had misrepresented its vehicle functionality presenting an inoperable prototype, inflated pre-order numbers with non-binding orders, and falsely claimed to produce hydrogen at low cost.
The report even claimed that the “In Motion” video showed a truck rolling downhill creating the false impression it could drive under its own power.
As the truth came out, $NKLA stock plummeted, key partnerships unraveled, and General Motors scaled back its deal with Nikola.
By 2021, Trevor Milton was indicted for securities fraud connected to Nikola.
On May 2, 2023, investors filed a lawsuit, alleging Nikola deceived them about its technology, production capabilities, and business prospects.
What Can Investors Expect Now?
Nikola has reached a settlement with $NKLA investors over claims that it misled them about the functionality of its hydrogen-electric trucks, production timelines, and business prospects.
If you were affected by this situation, you may be eligible to file for a payout and receive your share of the settlement. Check the FAQ section below for details on eligibility and claims.