Nikola Founder Trevor Milton Faces Allegations of Undermining Bankruptcy Process
Court Approves Lucid Motors’ Acquisition Amid Last-Minute Objection
A Delaware bankruptcy court smoothly approved the sale of bankrupt electric truck maker Nikola’s assets to Lucid Motors on Friday—until an unexpected objection emerged in the final moments of the hearing.
The Eleventh-Hour Challenge
During the Zoom hearing, an attorney representing ISSO LLC—an entity linked to Nikola founder Trevor Milton—raised concerns about the auction process. While not formally objecting, the lawyer warned that his client might pursue future claims, stating:
“We don’t want our silence to be held against us later.”
This intervention came despite Judge Thomas Horan having already verbally approved the $168 million asset sale to Lucid, which includes:
- Nikola’s Coolidge, Arizona factory
- Phoenix headquarters lease
- Manufacturing equipment
- 300 employee transfers
Milton’s Controversial Involvement
The appearance marks Milton’s latest attempt to influence proceedings since receiving a presidential pardon from Donald Trump in March 2025, which voided his four-year prison sentence. Legal experts suggest Milton may be positioning himself to challenge the arbitration award he owes Nikola—funds critical to settling shareholder lawsuits over his false claims as CEO.
Pattern of Disruption Alleged
Nikola’s attorney Joshua Morris accused Milton of a calculated strategy:
“This is a pattern we’ve seen repeatedly—baseless assertions without evidence. We believe it’s an attempt to harm the company for unclear benefits.”
Morris speculated Milton might be trying to:
- Depress Nikola’s valuation
- Force a low-ball settlement on his arbitration debt
- Complicate remaining asset sales (including hydrogen truck inventory)
What Comes Next?
With the Lucid deal approved, Nikola continues winding down operations while Milton’s long-term intentions remain uncertain. The company maintains its auction process was transparent, but legal observers warn Milton’s late maneuver could signal future challenges.
Editor’s Note: Milton’s representatives did not respond to requests for comment by publication time.
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