Trevor Milton, second left, leaves court in New York on Sept. 12.
Victor J. Blue/Bloomberg
Nikola
stock is up because the company could receive a cash infusion from an unusual source.
On Oct. 20, an arbitrator ordered Nikola (ticker: NKLA) founder and former CEO Trevor Milton to pay $165 million to the company, the firm said in a filing with the Securities and Exchange Commission on Tuesday.
Milton was convicted of securities fraud in 2022 in connection with false statements made during the development of the company.
Nikola (ticker: NKLA) referred Barron’s to its SEC filing when asked for additional comment. Milton couldn’t immediately be reached.
Nikola stock closed up 9% in Tuesday trading. The
S&P 500
and
Nasdaq Composite
were up 0.7% and 0.9%, respectively.
The move adds some $80 million to the company’s market capitalization, about half the awarded amount. It wasn’t immediately clear how much of the award Nikola might collect.
Nikola ended the second quarter with more than $225 million in cash on its books. Wall Street projects it will use about $100 million a quarter for the coming few quarters to build its business.
Write to Al Root at [email protected]
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