Nikola ordered to pay $125M to settle SEC fraud charges
SEC charged the company with misleading investors
Startup electric truck maker Nikola Corp. will pay $125 million to settle civil SEC charges that it misled investors about its products and commercial outlook, the agency announced Tuesday.
Shares of Nikola stock were up in premarket trading following the news.
Nikola founder Trevor Milton still faces civil and criminal fraud charges for misleading statements that the SEC said allowed him to reap "tens of millions of dollars," Reuters reported.
As part of the settlement, the SEC said Nikola has agreed to cooperate with any continuing litigation.
Nikola last week announced it had made the first deliveries of its Tre commercial truck to Total Transportation Services for use in dryage operations at The Port of Los Angeles.
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The company is expected to receive two electric and two hydrogen-powered Tres for evaluation before finalizing an order for 100 vehicles that would be delivered through 2023.