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This is a preview of our weekly newsletter. Each week I go beyond the news and hand create a special edition that includes my thoughts on the biggest stories, why it matters, and how it might impact the future.
Earlier this week, former Nikola CEO Trevor Milton was charged with two counts of securities fraud and one count of wire fraud, after misleading investors about the financial situation and virtually every aspect of Nikola’s operations. The indictments come after months of silence from Milton, who has all but vanished into thin air following his resignation as CEO of Nikola. The announcement of Milton’s charges, which were made by the United States Attorney’s Office for the Southern District of New York, will set a precedent for CEOs, especially for those who announced major breakthroughs in electric vehicle technology without publishing no relevant product.
For the past 13 years, Tesla has fought the companies and automakers who have paved the way to dethrone the electric car entity from its position as the world’s best electric vehicle maker. However, Tesla has never been challenged, even remotely, by a fully electric car company that has been established in recent memory. Most likely, this is due to Tesla’s dominance of the electric vehicle industry in almost all categories, including battery technology, software, vehicle design, and range.
Nikola founder Trevor Milton charged with three counts of fraud
That hasn’t stopped CEOs of other automakers from making wacky claims with their vehicles, and Milton was just one of many. Since Nikola’s 2018 lawsuit against Tesla for allegedly taking design ideas from the Nikola One and implementing them into the Tesla Semi, it appears Milton was the only CEO to actually convince some people that their product. is meaningful and revolutionary, although it doesn’t have much of a product at all. Considering that Nikola has admittedly misled shareholders about the capabilities of its all-electric utility vehicle, there should be a clue for CEOs of companies that exist and will exist in the future: don’t lie about your product and don’t not insist on shareholders believing something that is true.
This should be common sense and should be obviously clear, but it is something that should prompt other CEOs of emerging automakers to be cautious in their words and demands. Leveraging a highly marketable and rapidly growing electric vehicle industry requires strategic market entry. Lying about the capabilities of what your vehicles might do in the future is just not a good decision. Over time, things can be established and made successful through the dedication and hard work of engineering teams and others. But until this day, it might be better to stop making claims about the product and just publish some sort of proof that the company isn’t “a complex fraud,” as Hindenburg Research called it.
When companies can effectively manufacture a product that has value and prove to people, especially shareholders, that they really want to enter the industry, there is a lot of respect for the entity that is successful. Skepticism is a commonly displayed trait, especially in the EV industry, as many companies have come and gone, setting their own expectations which are quite high, but turned out to be insufficient. This inevitably leaves many EV enthusiasts, especially Tesla owners and fans, disappointed with what could possibly happen.
Undoubtedly, some people will inevitably benefit from enthusiastic and passionate investors about the possibility of sustainable energy and transportation. Based on the allegations made by the US Department of Justice against Milton, he is one such person and that statement could be proven in a federal courtroom in the coming months. “The only thing scammers have in common – they are liars, cheaters and thieves,” Chief Inspector Phillip R. Bartlett said. He added that if an investment opportunity sounds too good to be true, it probably is.
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I use this newsletter to share my thoughts on what’s going on in the Tesla world. If you want to talk to me directly, you can email me or reach me on Twitter. I don’t bite, be sure to reach out!
-Joey
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