There’s a lot of ways to make money in this crazy world. Some sell the wool from their sheep; others make light bulbs and a small few cash in tens of millions of dollars of stock in a company that has nothing more than a brand name and virtually no revenue.
Trevor Milton, disgraced founder and CEO of Nikola Corp just sold about $55 million worth of stock on the company’s lockup expiration date, according to SEC filings. Milton maintains his position as the largest shareholder of the company and had plans to keep it that way according to a statement he made to Bloomberg.
Milton’s share lockup period expired last week and on the same day, big name automaker GM announced that it will no longer be investing in the company. What does this mean for Milton’s 91.6 million shares of Nikola stock, given the fact that he is now free to do what he wants with them.
Accused of fraud and misleading investors, Nikola’s prospects look bleak to some. Nikola partner Bosch also cut its stake in the company to below 5% following the lockup period’s expiration.
Interestingly, Trevor Milton took the cheque he got from selling the shares to the real estate market and purchased three monster homes, including a $32 million ranch located in Utah. Would you have done the same thing? Or do you think there should be serious legal repercussions for Trevor Milton?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.