Trevor Milton, the founder of Nikola Motor Company stepped down as the executive chairman in the wake of fraud allegations, AFP reported. Hindenburg Research had accused Nikola of mischaracterising a business deal as being worth more than it was.

“Nikola misled partners into signing agreements by falsely claiming to have extensive proprietary technology,” they said in a report.

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Nikola soon responded, “These allegations by the short seller are false and misleading, and designed to manipulate the market to profit from a manufactured decline in Nikola’s stock price.” However, the Hindenburg said that the company’s rebuttal was a “tacit admission of securities fraud.”

“We think Trevor, through dozens of outright lies, was able to form partnerships with some of the largest legacy auto companies in the world in their desperation to catch up to Tesla’s EV leadership status. These partners did not do their homework,” Hindenburg said.

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Shares of the embattled startup were under renewed pressure Monday following the sudden resignation of Milton.

“The focus should be on the Company and its world-changing mission, not me. I intend to defend myself against false allegations levelled against me by outside detractors.”, he said in the resignation report.

Milton launched the company in 2015 to develop trucks and pick-ups powered by electric batteries or hydrogen fuel cells, and though Nikola has not yet built anything it caught attention by signing strategic partnerships with such renowned groups as GM and German engineering giant Bosch.