SEC Dismisses Securities Fraud Case Against Nikola Founder Trevor Milton

The U.S. Securities and Exchange Commission (SEC) has moved to dismiss its civil case against Trevor Milton, founder and former CEO of Nikola, following his pardon by President Donald Trump. The SEC's case, filed in 2021, accused Milton of misleading investors by falsely claiming Nikola had developed its own electric and hydrogen-powered trucks and battery technology, while these were actually outsourced. Milton was convicted in October 2022 on securities and wire fraud charges related to deceptive claims and a staged promotional video, resulting in a four-year prison sentence. Despite the SEC's dismissal, Milton's criminal convictions remain intact, and Nikola filed for Chapter 11 bankruptcy in February 2025 amid mounting financial and legal troubles. The dismissal symbolizes an end to the SEC's legal battle but highlights the broader cautionary tale about investor risks in the electric vehicle startup sector. Milton waived his right to recover legal costs and released all claims against the SEC as part of the dismissal agreement.