Nikola shareholders approve measure to issue new stock over ex-CEO Trevor Milton’s objection

Nikola shareholders approve measure to issue new stock over ex-CEO Trevor Milton’s objection


Nikola Motor Company

Source: Nikola Motor Company

Electric truck maker Nikola has finally won shareholder approval to issue new stock, the company said on Tuesday. Nikola has been trying for two months to win enough votes to overcome the objection of its since-departed founder, who previously voted his 20% interest in Nikola against the proposal.

The company said it can now increase its total shares outstanding from 600 million to 800 million, giving it flexibility to raise cash by issuing new funds as needed. More than 66% of the total votes cast, or more than 211 million shares, were in favor of the proposal, Nikola said in a statement.

The measure required approval by owners of at least 50% of the company’s outstanding shares to pass.

The company’s June 1 annual shareholders’ meeting was adjourned after Nikola’s founder and former CEO and chairman, Trevor Milton, voted against the proposal. The meeting briefly resumed on June 30, and again on July 18, only to be adjourned again on both occasions as the total votes in favor fell short of the needed threshold.

Milton, who founded Nikola in 2014, left the company in September 2020 following allegations of fraud. He remains the company’s largest shareholder. Milton owns about 11% of Nikola’s stock outright and controls another 9% via an investment vehicle that he co-owns, giving him effective control of about 90 million shares of Nikola’s stock.

Milton was indicted by a federal grand jury on four counts of fraud related to representations he made to potential Nikola investors. His trial is scheduled to begin in September. Milton has denied the allegations.

Nikola said on Monday that it has agreed to acquire battery-pack supplier Romeo Power in a $144 million all-stock transaction that won’t require it to issue new shares. The truck maker is expected to report its second-quarter results — and its plans for the additional shares — before the U.S. markets open on Thursday.



Source

Nike stock soars 17% after CEO soothes investors, says recovery is on the horizon
Business

Nike stock soars 17% after CEO soothes investors, says recovery is on the horizon

Nike stock soared 17% on Friday after the company said the worst of its struggles are behind it, following a better than feared fiscal fourth-quarter earnings report.  Nike on Thursday reiterated it would take the biggest financial hit from its turnaround plan during the quarter, soothing investors who worried President Donald Trump’s tariff hikes on […]

Read More
Hemi V-8 engines and mechanical bull rides: Inside Stellantis’ plan to revive its Ram Trucks brand after yearslong sales declines
Business

Hemi V-8 engines and mechanical bull rides: Inside Stellantis’ plan to revive its Ram Trucks brand after yearslong sales declines

Stellantis’ Ram display is seen at the New York International Auto Show on April 16, 2025. Danielle DeVries | CNBC AUBURN HILLS, Mich. — Ram CEO Tim Kuniskis reemerged from a seven-month retirement late last year saying he “missed the fight” and admitting the Stellantis brand was getting smashed in the marketplace by its competition. […]

Read More
​Here’s how the luxury real estate market is splitting up
Business

​Here’s how the luxury real estate market is splitting up

View of luxury waterfront homes and boats along the intracoastal waterway near Jupiter Inlet in Jupiter, Florida in Palm Beach County Ryan Tishken | Istock | Getty Images A version of this article first appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. Sign up to receive future […]

Read More