Nikola
Rolling a truck downhill to fake a demo is fraud. Founder Trevor Milton was convicted and sentenced to 4 years in prison.
2015 → 2024
$1.2B+
EV/Automotive
USA
IdeaProof AI Failure Score
What Happened: The Timeline
2015
Nikola Motor Company founded by Trevor Milton
Jun 2020
Goes public via SPAC, briefly reaches $34B market cap
Sep 2020
Hindenburg Research publishes devastating fraud report
Oct 2022
Trevor Milton convicted of securities fraud
Nov 2024
Nikola files Chapter 11 bankruptcy
Root Causes
Nikola claimed to be building hydrogen-powered semi trucks. Founder Trevor Milton's promotional videos went viral, and the company reached a $34B market cap via SPAC — briefly exceeding Ford's. Short-seller Hindenburg Research revealed that Nikola's famous truck demo was a vehicle rolling downhill, not driving under its own power. Milton was convicted of securities fraud in 2022 and sentenced to 4 years. The company attempted to pivot to battery-electric trucks but filed for bankruptcy in 2024 after delivering only a handful of vehicles.
Frequently Asked Questions
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