Nikola founder Trevor Milton accused of trying to derail bankruptcy case

Tech Crunch - Apr 11th, 2025
Open on Tech Crunch

Nikola's assets, including a factory and headquarters lease, were sold to Lucid Motors in a bankruptcy court hearing presided over by Delaware Judge Thomas Horan. The sale proceeded smoothly until Trevor Milton's representative voiced concerns about the auction process, sending ripples of unease despite the lack of formal objections. Milton, Nikola's founder, was recently pardoned and has previously been ordered to pay a $168 million arbitration award to the company. The sale of Nikola's assets to Lucid includes the hiring of 300 Nikola employees, while Nikola retains certain hydrogen-powered big rigs and other equipment.

The implications of Milton's intervention are significant as his past actions, including false claims as CEO and an arbitration award, continue to affect Nikola's bankruptcy proceedings. The company's lawyer, Joshua Morris, suggested Milton's involvement could be an attempt to disrupt the sale, potentially influencing the arbitration award or forcing a settlement. This development highlights ongoing tensions between Milton and Nikola, as well as the complex dynamics of corporate bankruptcy and asset liquidation. The court case underscores the challenges Nikola faces in resolving its financial and legal issues amid its transition and asset sale to Lucid Motors.

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RATING

6.2
Moderately Fair
Read with skepticism

The article provides a comprehensive overview of the court proceedings related to Nikola's bankruptcy and the sale of its assets to Lucid Motors. It effectively captures the key events and introduces the involvement of Trevor Milton, adding a layer of intrigue. However, the story could benefit from a more balanced representation of perspectives, particularly those of Milton and ISSO LLC. The reliance on statements from Nikola's legal team limits the source quality, and the speculative elements regarding Milton's intentions require further verification. Overall, the article is timely and relevant, with potential to engage readers interested in the electric vehicle industry and corporate legal matters.

RATING DETAILS

7
Accuracy

The story accurately reports on the court hearing regarding the sale of Nikola's assets to Lucid Motors, as well as the involvement of Trevor Milton and ISSO LLC in the proceedings. The claim that Judge Thomas Horan verbally approved the transaction aligns with factual details, and the mention of a lawyer's late objection is consistent with the reported events. However, the story's assertion about Trevor Milton's motivations and potential future actions, such as challenging the arbitration award, is speculative and requires further verification. Additionally, the article mentions Milton's pardon from President Trump, which is a critical fact that should be cross-verified for accuracy.

6
Balance

The article presents multiple perspectives, including those of Nikola's lawyer Joshua Morris and the lawyer representing ISSO LLC. However, it leans towards portraying Milton's actions negatively, emphasizing the potential harm to Nikola and the baseless nature of his claims. The lack of direct input from Milton or ISSO LLC creates an imbalance, as their side of the story is underrepresented. The article could benefit from more neutral language and a broader range of viewpoints to provide a balanced perspective.

8
Clarity

The article is generally clear and well-structured, with a logical flow of information. It effectively outlines the sequence of events during the court hearing and provides background on Nikola's bankruptcy case. The language is straightforward, making it accessible to a general audience. However, some speculative elements regarding Milton's future actions could be more clearly identified as such to avoid confusion.

5
Source quality

The article relies on statements from legal representatives involved in the proceedings, which are credible sources for the reported events. However, it lacks attribution to additional independent sources or expert commentary that could enhance the reliability of the information. The absence of direct quotes from Trevor Milton or ISSO LLC's spokesperson diminishes the source quality, as it relies heavily on the perspective of Nikola's legal team.

5
Transparency

The article provides some context about the court proceedings and the background of Trevor Milton's involvement with Nikola. However, it lacks transparency regarding the sources of certain claims, particularly those related to Milton's intentions and the potential impact on the arbitration award. The absence of detailed explanations or evidence supporting these claims affects the overall transparency of the article.

Sources

  1. https://techcrunch.com/2025/04/07/nikola-founder-trevor-milton-wants-to-buy-the-bankrupt-startups-assets/
  2. https://20fix.com
  3. https://www.drivingeco.com/en/trevor-milton-quiere-recomprar-nikola-tras-arruinarla/
  4. https://techcrunch.com/2025/04/11/nikola-founder-trevor-milton-accused-of-trying-to-derail-bankruptcy-case/
  5. https://miamidaily.life/local/nikola-founder-trevor-milton-allegedly-attempts-to-derail-bankruptcy-proceedings/