Key points:
- Nikola stock has fallen 69.5% YTD. Can it recover from the founder’s mistake?
- Trevor Milton, its founder, was recent;y convicted of fraud by a Manhattan jury.
- The company is set to report earnings on November 3, 2022.
The Nikola Corp (NASDAQ: NKLA) stock has fallen 69.5% this year, and many wonder whether the company can recover from its founder’s mistakes and tarnished reputation. Trevor Milton, Nikola’s founder, was recently convicted of fraud by a jury in a Manhattan court.
The jury found Milton guilty of deceiving investors of his company’s progress in designing and building an electric or hydrogen-powered 18-wheeler truck. In addition, Milton was convicted of passing off a General Motors truck as a Nikola-designed and built truck.
Also read: The Best Electric Car Stocks To Buy.
Luckily for Nikola, the company has managed to turn itself around after Trevor was forced to resign in 2020, leaving the company’s shares in shambles. The EV truck manufacturer now has a new management team led by CEO Mark Russell.
The company has been producing and delivering its Tre Class 8 battery-electric vehicles this year. However, it had to recall all 93 vehicles delivered to fix an issue with the seat belt anchor assembly.
Nikola is expected to release its Q3 earnings report on November 3, 2022, with many investors hoping to see the firm progress on its various milestones. Its founder’s recent conviction and planned sentencing on January 27, 2022, will end the fiasco that damaged the company’s reputation for years.
However, Milton will likely appeal the conviction, extending his sentencing date since it is hard to imagine that he has firm ground to overturn the jury ruling. Meanwhile, all eyes will be on Nikola in November as its earnings report will shed light on the company’s financial position and operations.
*This is not investment advice.
Nikola stock price.
The Nikola stock price has fallen 69.46% this year. Can it recover from its founder’s reputation?
