Article Rewrite:
Government Funding Boosts Nikola's Hydrogen-Fueled Truck Stations
The Biden administration is lending a helping hand to Nikola, providing a $2 million grant to aid in the development of hydrogen fueling technology for its planned hydrogen-fueled truck filling stations.
This financial aid is pivotal in driving advancements in critical hydrogen fueling technology, improving overall efficiency in fuel cell vehicles and ensuring necessary safety and dependability standards are met.
Nikola Energy and Trade Department head, Pablo Koziner, explained, "This funding plays a significant role in the advancement of vital hydrogen fueling technology, which enhances the overall efficiency of fuel cell vehicles and concurrently maintains the required safety and reliability standards."
This is the second time the company has received such a substantial government grant, having received a $1.7 million state investment in August 2019.
Regrettably, despite receiving this latest funding, Nikola has yet to produce a single truck for sale. The company has promised to manufacture 25 to 50 vehicles by the end of the year, though they're unsure if they have all the necessary components to complete the vehicles as planned.
The company has faced financial troubles in the past due to overly ambitious claims related to their progress, including the development of an economical method for hydrogen production. Nikola's founder, Trevor Milton, has been plagued with legal matters as a result.
On July 29, Milton was charged with securities and wire fraud, accused of making false and misleading statements about "essentially all aspects of the business." Since being charged, Milton has sold 14.5 million shares, netting him a staggering $148.2 million, despite retaining more than 63 million shares of the company, amounting to approximately 16% of the outstanding shares.
The Energy Department defended its grant process on Thursday, stating, "We provide grants based on a rigorous, performance-based review process, with several technical experts examining applications."
Nikola had submitted its grant application following Milton's resignation as CEO and received the grant officially on July 7, three weeks before the charges were brought. However, Nikola had already announced the grant on Thursday, despite having received it earlier.
Despite Milton's legal troubles, which were publicly known because the company had disclosed subpoenas from the Justice Department and the Securities and Exchange Commission, and an internal investigation that claimed Milton had misled investors, no criminal charges have been brought against the company.
On Thursday, the Justice Department did not respond to requests for comment.
Shortly after Milton's charges, Hindenburg Research, an investment firm known for selling short positions in Nikola stock, publicly criticized Milton, quoting him from the indictment as saying, "Nikola produced hydrogen at lower costs, despite knowing that Nikola did not produce any hydrogen, let alone at lower costs." Hindenburg expressed doubt that the $2 million grant would contribute to the perpetuation of the lie.
In September 2022, Milton resigned as CEO of Nikola after Hindenburg Research accused the company of fraudulent practices. Following the separation agreement, Nikola must still contribute to Milton's legal defense, having set aside $8 million for these expenses.
Since Milton's charges, representatives of Nikola have emphasized that even though he still holds shares, he has no further involvement with the company and that no legal charges have been brought against the company or its current employees. A Nikola spokesperson told media on Thursday, "Nikola has made no further comment on Milton."
Milton and his legal team could not be reached for comment.
