- Trevor Milton, Nikola's founder, announces full pardon, erasing 2022 securities fraud conviction.
- The pardon comes as Nikola navigates bankruptcy proceedings and a collapsed stock price.
- Legal and political debates resurface over white-collar accountability and justice system dynamics.
A Surprise Turn for Milton
Trevor Milton, the embattled founder of electric truck maker Nikola Corp., revealed on Instagram that former President Donald Trump granted him a "full and unconditional pardon," wiping clean his 2022 conviction for securities fraud. The announcement, made on March 28, 2025, marks a dramatic reversal for Milton, who was sentenced to four years in prison just over a year ago in December 2023.
"This pardon represents a vindication," Milton wrote in his post, though legal experts note it does not affect ongoing civil litigation. The move aligns with Trump's broader critique of what he calls the "weaponization" of the Justice Department, particularly targeting high-profile business figures.
Nikola's Ongoing Struggles
The pardon lands as Nikola faces existential challenges. The company filed for Chapter 11 bankruptcy protection in February 2025 with just $47 million in cash—a stark contrast to its peak $26 billion valuation during the 2020 SPAC boom. Its stock, now trading at record lows, reflects a market cap of roughly $74 million.
Industry analysts suggest Milton's legal reprieve could complicate Nikola's efforts to recover funds from him as part of bankruptcy proceedings. "This introduces new variables into an already messy situation," said one restructuring advisor familiar with the matter, speaking on condition of anonymity.
Reactions and Ramifications
Legal scholars are divided on the pardon's implications. Some view it as an extraordinary intervention in a case involving demonstrable investor harm, while others argue it corrects an overreach by prosecutors. The Southern District of New York, which secured Milton's conviction, maintains a 98% conviction rate in fraud cases.
Meanwhile, Milton has signaled plans to produce a documentary about his ordeal. For Nikola, the path forward remains uncertain as it seeks buyers for its assets amid a brutal EV market downturn. The company did not respond to requests for comment on how the pardon might affect its restructuring efforts.