Nikola shares under pressure after founder resigns

"I have asked the board of directors to resign from my duties as executive chairman and board member of Nikola (Nasdaq: NKLA)," Tevor Milton wrote in a tweet. "The focus should be on the company and its world-changing mission, not me. I intend to defend myself against false accusations made against me by outside opponents." The resignation comes amid allegations by short seller Hindenburg Research, who accused Milton of misrepresenting Nikola's technology and capabilities prior to going public. The "breakthrough" battery system that Milton said the company was working on last year does not exist, according to the company, and Nikola claimed to have developed technology and vehicle components purchased from other manufacturers as his own. While Nikola refuted these claims, the SEC (and allegedly the DOJ) is conducting investigations. Prior to the report, General Motors (NYSE: GM) acquired an 11% stake in Nikola and announced that the company would produce its tent hydrogen fuel cell electric pickup truck - the Badger - by the end of 2022. Last week, GM CEO Mary Barra said the automaker was taking "reasonable care" over a $ 2 billion deal with the electric vehicle startup. Nikola stocks have been on a wild ride this year. The stock rose over 40% on September 8 after the company announced the GM deal, but has lost 16% so far in September and 49% in the quarter so far. They are still up 231% YTD (from $ 13 in early May to a 52-week high of $ 93.99 in June) to close at $ 34.19 on Friday. "We continue to strive to achieve our goals and create value for our shareholders," added Nikola CEO Mark Russell. "Our priorities remain unchanged and, in collaboration with our partners, we are focused on implementing our strategic initiatives and laying the foundations for becoming a vertically integrated provider of zero-emission transportation solutions.