Beleaguered electric truck maker Nikola Corporation (NASDAQ:NKLA) on Friday said that President and CEO Michael Lohscheller would be immediately stepping down from his roles, making way for Chairman Stephen Girsky to take the reins. The sudden management shuffle comes on the same day the company is expected to report second-quarter earnings.
Why It Matters: Lohscheller’s departure was attributed to a family health matter, leading to his return to Europe. Despite relinquishing his executive roles, Lohscheller will remain in an advisory capacity at Nikola until the end of September, facilitating a seamless leadership transition.
“I feel privileged and honored to have served as Nikola’s CEO and to have worked with so many inspiring colleagues who are relentlessly focused on advancing Nikola’s position as a leader in zero-emissions transportation. I am incredibly confident in Nikola’s future,” said Lohscheller.
Girsky will continue serving on the Board of Directors, while Steve Shindler, a director since October 2020, assumes the role of Chairman of the Board.
Why It Matters: The transition announcement coincides with the release of the company’s second-quarter financial results, scheduled for later on Friday.
Lohscheller’s tenure at Nikola has been marked by significant accomplishments, including driving sales momentum for the battery-electric truck and refining the company’s strategic direction.
This development follows Thursday’s shareholder approval, enabling Nikola to increase its authorized shares of common stock — a move aimed at securing crucial capital for the company’s growth.
Nikola has been navigating financial challenges, prompting cost-cutting measures and strategic adjustments.
Trevor Milton, the company’s founder and former chairman and CEO, contested the proposal via social media, as reported by CNBC. His opposition mirrored his previous attempt to thwart a similar share-increase proposal in 2022, which ultimately succeeded after several delays.
Milton resigned from Nikola in 2020 amid allegations of fraud raised by a Wall Street short-seller, and he later faced fraud convictions for misleading investors about Nikola’s technology.
Nikola’s second-quarter financial results are expected to be disclosed later on Friday, with estimates indicating a loss of 22 cents per share and revenue of $15.43 million, according to Benzinga Pro.
Price Action: Nikola shares plunged over 12% to $3.40 in premarket trading on Friday, but were still up 53% for the year so far.
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