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Nikola's Trevor Milton faces new sexual assault claim

Yahoo Finance's On The Move discuss the latest backlash facing electric auto maker Nikola.

Video Transcript

ADAM SHAPIRO: No winners in the fight for Nikola just yet. The latest is that with shares down anywhere between 5% and 8% today, there are two women who have come forward with formal charges of sexual assault against founder and former CEO Trevor Milton. Let me go first to Julie on this. I mean, Nikola has gotten no good news in the past couple of weeks, and we should point out that Mr. Milton is denying these allegations.

JULIE HYMAN: It just to me, once again, highlights what may have been a lack of due diligence or maybe action on that due diligence on the part of investors. I mean, we do know, of course, that investors, led by Fidelity, had pressured Milton to step down as CEO of the company, which he did do before the deal that took it public, the SPAC deal that took it public, although he did remain as chairman.

We also know that they were successful in getting him to ask his father to step down from the board, who had been serving on the board. So there was some level of change that was pushed for by the investors in the company, who apparently did not have the utmost of confidence in Trevor Milton, at least from an operational perspective.

We don't know if his personal issues were, these new allegations that you're talking about, were something that would have come out when doing any kind of investigation into his background. We also should point out that the General Motors deal with the company is set to close on September 30. That's tomorrow. So we should see if indeed that does close, if GM asks for a delay as all of this has now come out about Milton and about Nikola