Short seller Jim Chanos expressed disbelief Thursday following news that former Nikola Corp. NKLA founder Trevor Milton had received a full and unconditional pardon from former President Donald Trump. "Please tell me this is a hoax," Chanos wrote on X, reacting to the decision.
What Happened: Milton, once a prominent figure in the electric vehicle industry, was convicted of fraud in 2022 for misleading investors about Nikola's technology and capabilities.
Federal prosecutors determined that he knowingly misrepresented the company's production capabilities, including falsely claiming that Nikola’s semi-truck was fully operational when, in reality, promotional videos had staged the vehicle rolling downhill. In 2023, Milton was sentenced to four years in prison by U.S. District Judge Edgar Ramos.
Why It Matters: Trump's pardon of Milton comes amid his broader pledge to address what he calls the “political weaponization” of the justice system. “This pardon is not just about me—it’s about every American who has been railroaded by the government,” Milton said in a statement.
Milton had long maintained his innocence, arguing that the case against him was flawed. His legal troubles began in 2020 when short-seller Hindenburg Research released a damning report accusing Nikola of deception. The report wiped billions from Nikola's market value and led to Milton's resignation as executive chairman.
With the pardon restoring his rights, Milton announced plans to release a documentary addressing his legal battle.
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