The U.S. Securities and Exchange Commission (SEC) has moved to dismiss its case against Trevor Milton, the founder and former CEO of Nikola, the electric and hydrogen truck startup. The decision, filed Thursday in the U.S. District Court for the Southern District of New York, follows Milton’s recent pardon by President Donald Trump.
The case, originally brought in 2021, accused Milton of misleading investors by falsely claiming Nikola had built its own electric and hydrogen-powered pickup and developed in-house battery technology, despite outsourcing these components. Milton agreed to waive his right to recover legal costs and released all claims against the agency, according to the filing.
Nikola’s credibility collapsed in 2020 after Hindenburg Research, a prominent short-seller, accused the company of exaggerating its technological capabilities. Among the claims was a promotional video showing a truck appearing to drive at high speed when it was actually rolling downhill. The report triggered a massive sell-off in Nikola’s stock and led to Milton’s resignation.
In October 2022, Milton was convicted on securities fraud and wire fraud charges for deceiving investors. A 2023 jury verdict further cemented his guilt, resulting in a four-year prison sentence. Despite the SEC’s dismissal, Milton’s criminal convictions remain a major chapter in one of the most high-profile scandals in the electric vehicle industry.
Founded in Phoenix in 2014, Nikola once promised to revolutionize the trucking sector with zero-emission vehicles. However, mounting financial and legal troubles eroded investor confidence. In February 2025, Nikola filed for Chapter 11 bankruptcy, announcing plans to sell its assets as it joined a growing list of struggling EV startups.
The SEC’s dismissal marks a symbolic close to the agency’s legal battle, though Nikola’s downfall remains a cautionary tale for investors in the electric vehicle market.