Nikola Corporation (NASDAQ: NKLA) stock fell over 4% in the pre-market trading Tuesday. The company revealed plans to take legal action against the company it sold its Badger electric pickup truck assets last year.
Nikola (NKLA) sold its Badger electric pickup truck and power sports assets to EMBR Motors, a company spearheaded by television personality Dave “Heavy D” Sparks, best known as one half of the Diesel Brothers.
However, Nikola revealed in a recent regulatory filing that Sparks, attorney Cole Cannon, and disgraced Nikola founder Trevor Milton launched a campaign to seize control of Nikola’s board after acquiring the assets. This move occurred despite Sparks agreeing that Milton would have no involvement whatsoever.
The company said in the filing,
“The agreement specifically states that Mr. Milton was to have zero involvement with EMBR or the assets it had purchased as the company felt strongly that he had caused enough reputational, financial, and operational damage to Nikola.”
Nikola contends that EMBR failed to adhere to the terms outlined in the agreement, prompting it to pursue legal action against EMBR, Sparks, Cannon, and Milton.
Nikola (NASDAQ: NKLA) Stock Performance
NKLA stock dropped 4.20% in the pre-market trading today after closing the regular trade at $1.03 on Monday. The traders had exchanged hands with 123,986,404 (123.98 million) shares compared to the average daily trading volume of 93.23 million.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
