Nikola founder Trevor Milton, recently pardoned after a conviction on securities fraud charges, is actively pursuing an acquisition of the bankrupt company’s remaining assets, according to recent court filings and a source familiar with the situation.
Nikola Corp., which filed for Chapter 11 bankruptcy protection in February, previously indicated it aims to finalize a sale of its assets by mid-April. Milton’s involvement has led to tense exchanges: Court documents reveal Nikola blocked him from personally inspecting equipment and assets at its Coolidge, Arizona facility in recent weeks.
The renewed interest from Milton represents a striking development in Nikola’s troubled saga. Milton launched the electric vehicle startup in 2014, eventually taking it public in 2020 through a high-profile merger with a special purpose acquisition company (SPAC). However, allegations of fraud quickly emerged, prompting him to resign shortly thereafter in the same year. In 2022, Milton was convicted of securities fraud and received a four-year prison sentence in 2023. Just last month, he received a presidential pardon from Donald Trump.
Nikola’s own financial struggles mounted as the company battled battery fires, vehicle recalls, and significant fiscal pressures, ultimately leading to bankruptcy earlier this year.
Court records show that ISSO LLC, a Nevada-based company reportedly connected to Milton through family and legal representatives, submitted a formal bid on March 21. Nikola permitted ISSO representatives to inspect the facility, but explicitly prohibited photography or video recording and barred a particular ISSO representative from entry altogether. Although the individual’s name was redacted, the description provided in court by Nikola’s legal counsel matched Milton. Documents also revealed Milton’s father, Lance Milton, and lawyer Troy Wallin are involved with ISSO LLC filings in several states over recent years.
A source with insight into Milton’s strategy confirmed his intentions to acquire Nikola’s assets. Milton’s representatives have not publicly commented on the matter.
Nikola’s attorneys dismissed Milton’s efforts in a recent emergency hearing, labeling them as a “publicity stunt” and defending their decision to bar him from the premises. Bankruptcy court Judge Thomas Horan sided with Nikola, allowing the company’s restrictions to remain in place and denying ISSO LLC’s motion to grant Milton access.
The court had previously set April 3 as the deadline for submitting bids, with an auction scheduled for April 7 at 10:00 AM ET to determine the best offer. As of now, it remains unclear if any other parties have also shown serious interest or submitted competing bids to purchase Nikola’s assets.
