Alternative fuel truck company Nikola has seen its shares drop recently, but CEO Trevor Milton has just bought shares.
Nikola (NKLA) shares fell after a negative report of a short sale. Nikola refuted the charges Friday and Monday. Milton, who founded the company, said last week that Nikola’s shares are undervalued.
Milton paid $ 1.3 million on Monday for a total of 41,400 Nikola shares, an average price per share of $ 30.91 each. According to a form filed by Milton with the Securities and Exchange Commission, he made the purchases through M&M Residual, a limited company he owned. He remains Nikola’s largest shareholder through M&M, which now owns 91.6 million shares.
Last week a pact was made for General Motors (GM) to acquire an 11% stake in Nikola provided the latter with validation, while the former received an affirmation of its technology. When asked at a RBC Capital Markets virtual conference on Monday about the company’s transaction, CEO Mary Barra said that GM “has worked with many different partners and we are a very capable team that has done the proper due diligence.”