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Investing.com – Nikola stock (NASDAQ:NKLA) traded about 3% higher in Tuesday’s premarket after a $125-Million fine by the Securities and Exchanges Commission removed a key overhang for the company and its shareholders.
The company said it will pay the penalty in five instalments over two years. It has already provisioned for the fine, according to its November 4 disclosure.
Nikola said it neither admits nor denies the SEC’s findings in this matter.
The penalty settles the charges that the EV-maker defrauded investors by misleading them about its products, technical advancements and commercial prospects, according to the market regulator.
The SEC had accused Nikola of violating U.S. securities laws with several misleading statements made from March to September 2020 about in-house production capabilities, reservation book and financial outlook, according to Reuters.
The Department of Justice had in July indicted Nikola founder Trevor Milton for making false and misleading statements to investors. The company had then pointed out that Milton resigned from Nikola on September 20, 2020 and has not been involved in its operations or communications since that time. Milton is battling those charges in court.
Nikola went public via a special purpose acquisition company in June 2020 and, like many other EV-makers, has struggled to book revenue. Net loss at the company more than tripled from a year ago to about $268 million in the quarter ended September 30.
