California EV program gave Nikola Corp. $50 million despite former CEO's fraud conviction

Key Points:

• Trevor Milton, founder of Nikola Corp., falsely claimed the company developed the world’s first fully functional hydrogen-powered semi-truck and had massive preorders, leading to over $1 billion raised, but these claims were proven untrue.
• Despite Milton’s 2021 criminal indictment for fraud, California’s Air Resources Board (CARB) allowed Nikola to receive over $50 million in state subsidies for electric and hydrogen trucks, which were later recalled for safety issues and contributed to the company’s 2025 bankruptcy.
• Nearly 25% of automakers funded by California’s clean truck voucher program have exited the zero-emission market, raising concerns about CARB and its partners’ vetting processes amid broader industry challenges with heavy electric vehicle production.
• Milton was convicted of securities and wire fraud, sentenced to prison, and later pardoned by former President Trump in 2025, but his civil liabilities remain, and his attempts to reclaim funds from Nikola’s bankruptcy have been largely denied.
• Nikola truck owners face warranty losses and maintenance challenges after the company’s collapse; some, like trucking company King Fio, are now turning to more established manufacturers such as Tesla for future zero-emission vehicles.