In 2014, this man was disrupting the $1 trillion trucking industry.
By 2020, he was in Forbes 30U30, and his hydrogen-powered truck company was valued at $34 billion.
But today, he is in jail.
Here's the story:🧵
By 2020, he was in Forbes 30U30, and his hydrogen-powered truck company was valued at $34 billion.
But today, he is in jail.
Here's the story:🧵
Trevor Milton claimed his Nikola One truck was good to go and ready to disrupt the trillion-dollar trucking industry.
Here's a video of the Nikola One "driving" from Milton's demo.
Can you tell what's wrong here?
Here's a video of the Nikola One "driving" from Milton's demo.
Can you tell what's wrong here?
Despite the lack of a real product, Nikola partnered with big investors:
• BP - $750 million
• Bosch - $2.8 billion
• General Motors - $2 billion
These investors lent credibility to Nikola.
By June 2020, Nikola Motor had a $34 billion valuation.
• BP - $750 million
• Bosch - $2.8 billion
• General Motors - $2 billion
These investors lent credibility to Nikola.
By June 2020, Nikola Motor had a $34 billion valuation.
But In September 2020, everything unraveled.
Hindenburg Research released a report titled:
"Nikola: How to Parlay An Ocean of Lies Into a Partnership With the Largest Auto OEM in America."
It accused Nikola of widespread fraud.
Here's a breakdown:
Hindenburg Research released a report titled:
"Nikola: How to Parlay An Ocean of Lies Into a Partnership With the Largest Auto OEM in America."
It accused Nikola of widespread fraud.
Here's a breakdown:
The Hindenburg report revealed that Milton had:
• No working prototype
• Staged misleading videos & demonstrations
• Its battery advancements were purchased from a fraudulent company
Milton resigned as CEO, but he couldn't escape that easily.
• No working prototype
• Staged misleading videos & demonstrations
• Its battery advancements were purchased from a fraudulent company
Milton resigned as CEO, but he couldn't escape that easily.
In July 2021, Milton was charged with:
• Wire fraud
• Securities fraud
And in October 2022, a jury found him guilty on 3 counts of fraud.
In December 2023, Trevor Milton was sentenced to a $1M fine and 4 years in prison.
• Wire fraud
• Securities fraud
And in October 2022, a jury found him guilty on 3 counts of fraud.
In December 2023, Trevor Milton was sentenced to a $1M fine and 4 years in prison.
In 2024, Nikola Motors is still operating:
• 112 hydrogen fuel cell trucks wholesaled in the first half of 2024.
• 14 new HYLA hydrogen refueling stations are expected to be operational by the end of the year.
Signals are positive.
But their stock is down by 84.39% from 2016.
• 112 hydrogen fuel cell trucks wholesaled in the first half of 2024.
• 14 new HYLA hydrogen refueling stations are expected to be operational by the end of the year.
Signals are positive.
But their stock is down by 84.39% from 2016.
As a digital business builder, I find this story fascinating.
Here are three lessons entrepreneurs and marketers can take from Trevor Milton's story:
Here are three lessons entrepreneurs and marketers can take from Trevor Milton's story:
Lesson 1: Attention-grabbing marketing starts with a story.
Similar to Elizabeth Holmes at Theranos or SBF with FTX, Milton:
1. Positioned himself as a visionary founder.
2. Created a narrative around Nikola Motors' "groundbreaking" technology, triggering FOMO and curiosity.
Reminds me of this Steve Jobs quote:
Similar to Elizabeth Holmes at Theranos or SBF with FTX, Milton:
1. Positioned himself as a visionary founder.
2. Created a narrative around Nikola Motors' "groundbreaking" technology, triggering FOMO and curiosity.
Reminds me of this Steve Jobs quote:
Lesson 2: Authority association is a double-edged sword.
Nikola's partnerships with Bosch, GM, and BP boosted its credibility.
These big names fooled even the brightest investors:
• Bill Ackman
• David Einhorn
• Chamath Palihapitiya
Nikola's partnerships with Bosch, GM, and BP boosted its credibility.
These big names fooled even the brightest investors:
• Bill Ackman
• David Einhorn
• Chamath Palihapitiya
Lesson 3: Don't fall for the urgency trap.
Milton's bold claims and limited "production runs" created a sense of urgency.
He called Nikola a once-in-a-lifetime opportunity.
This drove demand and pushed the stock higher.
Milton's bold claims and limited "production runs" created a sense of urgency.
He called Nikola a once-in-a-lifetime opportunity.
This drove demand and pushed the stock higher.
Nikola's story is a warning of how powerful marketing can be.
My takeaways:
1. Attention-grabbing marketing starts with a story
2. Authority association is a double-edged sword
3. Don't fall for the urgency trap
Now, let me know what's your biggest takeaway from the story?
My takeaways:
1. Attention-grabbing marketing starts with a story
2. Authority association is a double-edged sword
3. Don't fall for the urgency trap
Now, let me know what's your biggest takeaway from the story?
I study leaders (both good and bad) as I build my digital business.
But most people don't know I made my first $10k online as a ghostwriter.
This ultimately helped me escape the Wall Street rat race.
Become a Premium Ghostwriter in 5 steps here: x.premiumghostwritingblueprint.com
But most people don't know I made my first $10k online as a ghostwriter.
This ultimately helped me escape the Wall Street rat race.
Become a Premium Ghostwriter in 5 steps here: x.premiumghostwritingblueprint.com
Thanks for reading!
If you enjoyed this, then follow me @dickiebush for more posts on digital writing and digital businesses.
Then, I'd appreciate it if you jumped back to the top and reposted the first post to share it with others: x.com
If you enjoyed this, then follow me @dickiebush for more posts on digital writing and digital businesses.
Then, I'd appreciate it if you jumped back to the top and reposted the first post to share it with others: x.com
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