Nikola appoints third CEO in turbulent year
Nikola appoints third CEO in turbulent year
Nikola Replaces CEO Amidst Troubles and Challenges
In a surprising move, Nikola, the troubled manufacturer that made waves in the electric vehicle industry, has announced a change in leadership. Steve Girsky, the chairman of Nikola, will be taking over as the new CEO. This transition comes just three years after Girsky played a crucial role in taking the company public. The outgoing CEO, Michael Lohscheller, is stepping down immediately due to a family health matter, according to a statement released by Nikola.
Nikola, once considered a promising disruptor in the industry, has faced a series of setbacks, scandals, executive changes, and supply-chain constraints. As a result, the company has been forced to scale back its ambitions multiple times. Investors responded to the news with disappointment, as the stock fell 9% to $3.09 in New York.
Lohscheller’s departure marks the end of his tenure as CEO, a position he assumed just last year. He joined Nikola as president in early 2022 and was expected to help the company transition from a startup to a mass producer of trucks. Girsky, the incoming CEO, is known for his role in helping General Motors (GM) navigate through bankruptcy. He was the head of the special purpose acquisition company that took Nikola public through a reverse merger in 2020. In addition, Girsky brokered an 11% stake in Nikola for GM, as part of a strategic partnership that was later canceled.
The past quarter has been a roller coaster for Nikola. Despite the company’s scandals and challenges, its shares managed to outpace the market, even as its founder and former chairman, Trevor Milton, awaited sentencing after being convicted of securities fraud. Milton has also called for leadership changes within Nikola. Furthermore, the company faced an unfortunate fire incident at its headquarters in June, damaging several parked big rigs.
As part of the leadership reshuffle, Girsky will be replaced as chairman of Nikola’s board by Steve Shindler, an alumni of the blank-check company VectoIQ. Shindler has been on Nikola’s board since October 2020. Girsky will, however, remain a member of the board.
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Nikola’s stock has had a tumultuous journey, trading below $1 a share for most of April and May, which raised concerns of delisting. Although there has been a recent rebound, with shares exceeding $3, they are still significantly below the closing peak of almost $80 in mid-2020.
This latest change in leadership presents an opportunity for Nikola to chart a new course. With Girsky at the helm, and Shindler as the new chairman, the company can forge ahead with a fresh vision and renewed determination. As the industry continues to evolve and competition grows, Nikola will need to navigate its way through challenges and rebuild investor trust. Only time will tell if this new leadership can steer the company back towards success.
