Nikola Corp’s stock surged 14.7% on Thursday after its founder, Trevor Milton, announced that he had received a full and unconditional pardon from former U.S. President Donald Trump. This revelation, shared via Milton’s social media, has sparked a wave of speculation about his possible return to the electric truck company, which has been embroiled in controversy following allegations of fraud.

Nikola’s Founder and Fraud Conviction

Milton, who was once hailed as a visionary in the electric vehicle (EV) industry, was convicted of securities fraud in 2023 after misleading investors about the company’s hydrogen technology. His conviction stemmed from exaggerated claims about Nikola’s capabilities, including false statements about proprietary battery developments and vehicle production. These revelations were first exposed by short-seller Hindenburg Research, which triggered a Department of Justice (DOJ) investigation into Nikola’s business practices.

The Impact of Trump's Alleged Pardon

On Thursday, Milton posted on social media stating that he had received a "full and unconditional pardon" from Trump. However, there has been no official confirmation from the White House or the Justice Department regarding this claim. If true, this development could significantly impact Milton’s legal standing and potentially open doors for his return to the automotive industry.

Investor Speculation Drives Nikola Stock Higher

Following Milton’s announcement, Nikola Corp’s stock (OTC: NKLAQ) surged 14.7% in trading, reflecting strong investor interest and speculation. Market analysts believe that some investors view this pardon as an opportunity for Milton to re-enter the company, despite its financial struggles and bankruptcy filing earlier this year.

Nikola’s Downfall: Fraud Allegations and Bankruptcy

Nikola once positioned itself as a leader in the hydrogen-powered trucking industry, competing against major players like Tesla and Rivian. However, its reputation collapsed after Hindenburg Research’s scathing report accused the company of fabricating claims about its technology. The company later admitted that one of its flagship trucks, the Nikola One, was not functional despite promotional videos suggesting otherwise.

By early 2024, Nikola Corp filed for bankruptcy, as the company struggled with legal costs, investor lawsuits, and financial instability. The fraud allegations led to a four-year prison sentence for Milton, though his reported pardon has now raised questions about his future involvement with Nikola.

What’s Next for Nikola and Milton?

While Nikola remains bankrupt and under financial scrutiny, Milton’s claim of a Trump pardon has reignited debates over his role in the industry. Some investors believe he may attempt a comeback, especially given his statement that he is preparing for "the greatest comeback story in America." However, with no official White House confirmation, the market’s response remains speculative.

Investor Caution Advised Amid Legal Uncertainty

Financial analysts are urging investors to remain cautious, as Nikola's bankruptcy status, unresolved legal issues, and lack of confirmation regarding the pardon make it a highly volatile stock. Until the U.S. government provides official confirmation, the situation remains uncertain and highly speculative.

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