- Donald Trump grants full pardon to Trevor Milton, overturning his 2022 fraud conviction.
- The move comes weeks after Nikola's bankruptcy filing and amid $680M restitution claims.
- Milton's political donations and Trump's 'weaponization' rhetoric frame the controversial decision.
A Presidential Reprieve for Disgraced Founder
Former President Donald Trump has issued a full pardon to Trevor Milton, the embattled founder of bankrupt electric truck maker Nikola Corporation, effectively nullifying his 2022 conviction for securities and wire fraud. The surprise move comes just weeks after Nikola filed for Chapter 11 protection and as federal prosecutors sought $680 million in restitution for defrauded shareholders.
Trump personally called Milton to deliver the news, according to people familiar with the matter. The pardon wipes clean Milton's four-year prison sentence for misleading investors about Nikola's technological capabilities during its SPAC-fueled rise to a $30 billion valuation - briefly surpassing Ford's market cap.
Political Connections and Investor Fallout
The decision carries significant political undertones. Milton and his wife donated over $1.8 million to Trump's 2024 reelection campaign last October, federal records show. In announcing the pardon, Trump referenced his campaign promise to curb what he calls the Justice Department's "political weaponization" - though legal experts note Milton's prosecution began under his own administration.
Market reaction was immediate, with Nikola's moribund shares jumping 14.7% in over-the-counter trading despite the company's bankruptcy proceedings. The pardon may effectively void hundreds of millions in potential restitution payments Milton faced, though civil suits could continue.
From SPAC Darling to Pardon Controversy
Milton's rapid fall began in 2020 when short-seller Hindenburg Research exposed exaggerated claims about Nikola's technology, including a truck rolling downhill in a promotional video falsely presented as under its own power. His resignation and subsequent conviction became emblematic of the SPAC boom's excesses.
The founder now plans to release a documentary presenting his side of the story, while critics decry the pardon as undermining corporate accountability. With Nikola's assets being liquidated and the EV sector facing broader headwinds, Milton's second act begins as his former company's remains are sold for parts.