Nikola sees US$125M fine as it discusses deal with SEC
BNN Bloomberg
Nikola Corp. said it is in settlement discussions with U.S. regulators in which the company would pay a US$125 million civil penalty, bringing the embattled electric-truck maker a step closer to closing an investigation that’s cast a shadow over its path to production.
Nikola Corp. said it is in settlement discussions with U.S. regulators in which the company would pay a US$125 million civil penalty, bringing the embattled electric-truck maker a step closer to closing an investigation that’s cast a shadow over its path to production.
The company expects to pay the fine in installments, with a final deal subject to further negotiations with the Securities and Exchange Commission, the company said Thursday as it reported third-quarter financial results. The agency has been examining claims by a short-seller that Nikola deceived investors about its business prospects.
“We believe now we have a potential settlement on the horizon,” Chief Executive Officer Mark Russell said on a call with analysts.
Nikola also projected delivering “at least” 25 battery-electric trucks to customers by year-end. That was the low end of a range that the company outlined in August, when it slashed its forecast in half from 50 to 100 vehicles because of supply-chain bottlenecks.
The company, whose former executive chairman was charged with misleading investors, is trying to beat out established automakers by producing battery-electric and fuel-cell semi trucks, and by establishing a hydrogen fueling infrastructure to power them. The Phoenix, Arizona-based manufacturer promised to beat Tesla Inc. to market with a commercial EV and was the poster child for SPAC-listed clean energy upstarts in 2020.
Nikola jumped 8 per cent to US$13.72 at 10 a.m. in New York. The stock was down 17 per cent this year through Wednesday’s close, while the Russell 2000 Index advanced 22 per cent.
