Nikola founder's fraud case raises questions over $50 million California truck subsidies

Trevor Milton, founder of Nikola Corp., secured over $1 billion from investors by overstating the company’s hydrogen-truck technology and pre-order volume. Although he was criminally indicted in 2021 for false statements, the California Air Resources Board approved Nikola for its Clean Truck and Bus Voucher Incentive Project, resulting in more than $50 million paid for 166 electric and hydrogen trucks. Most of Nikola’s vehicles later required recalls due to battery fires and hydrogen-tank problems, and the company declared bankruptcy in February 2025, abandoning warranties and spare-part support.

The episode has sparked criticism that the state’s $1-billion clean-truck program inadequately screened participants, though officials note the Nikola subsidies are a small fraction of the roughly 12,000 clean vehicles funded. Former Nikola executives and industry observers warn that better oversight is needed to protect taxpayer money and ensure reliable zero-emission freight solutions.