• Former President Donald Trump has pardoned Trevor Milton, founder of electric truck maker Nikola Corp., calling his fraud conviction "very unfair."
  • Milton was sentenced to four years in prison in December 2023 for defrauding investors; the pardon comes as Nikola navigates Chapter 11 bankruptcy.
  • The move reignites debates about white-collar accountability and political influence, given Milton's $920,000 in donations to Trump-affiliated committees.

A Controversial Pardon

Trevor Milton, the embattled founder of electric vehicle startup Nikola Corporation, has been granted a full pardon by former President Donald Trump, who called Milton's prosecution "a grave miscarriage of justice." The surprise move comes just months after Milton began serving a four-year prison sentence for securities fraud—a conviction tied to exaggerated claims about Nikola's technology that prosecutors said cost investors billions.

"He was treated very unfairly," Trump said in a statement late Wednesday, without elaborating on specific grievances with the case. Legal experts note the pardon short-circuits Milton's appeal process and eliminates his $680 million restitution obligation to defrauded Nikola shareholders, though civil suits may continue.

Bankruptcy and Backlash

The pardon lands as Nikola—once valued at $26 billion—fights for survival. The company filed for Chapter 11 protection in February with just $47 million cash on hand, its market cap eroded to $74 million amid production struggles and executive turnover. While Nikola recently reported delivering 40 hydrogen trucks last quarter, its Nasdaq delisting looms.

Critics quickly noted Milton donated nearly $1 million to Republican causes in 2020, including $920,000 to a Trump Victory Fund. "This isn't justice—it's patronage," said one institutional investor burned by Nikola's collapse, speaking anonymously due to pending litigation. Prosecutors had accused Milton of "lying like a rug" about nonexistent technology, including a truck rolling downhill in a widely shared promotional video.

Uncertain Fallout

Legal analysts say the pardon could complicate Nikola's bankruptcy proceedings, where creditors may challenge any attempt by Milton to reassert influence. The company, now led by fourth CEO Steve Girsky, declined to comment but has previously distanced itself from its founder. Meanwhile, the EV sector's wider struggles—from charging infrastructure delays to flagging demand—continue to pressure cash-strapped startups.

One silver lining for Nikola: its hydrogen truck factory remains operational, with insiders suggesting asset sales or partnerships could emerge from bankruptcy. But for critics, Trump's intervention reinforces perceptions of a two-tiered justice system. As one former federal prosecutor put it: "Fraud victims don't get pardons—but apparently, GOP megadonors do."