M&M Residual and Trevor R. Milton Announce Concerns Related to Potential Fraud and Misconduct at Nikola Overseen by Steve Girsky, Britton Worthen and the Board of Directors - Seite 2

The Company has only now publicly disclosed its 2023 sale of the Nikola Badger and powersports program (the “Badger Transaction”), to an entity unaffiliated with us, and seemingly only to further its interests in the Arizona Lawsuit. In our view, the Badger Transaction confirms that the Nikola Badger product was real, used mostly Nikola’s parts and has material value. The Badger Transaction, which was sold to a third party, was never disclosed to the market or stockholders until just recently through the Arizona Lawsuit. We find it highly concerning that the Company then went on to sell additional shares in the public markets after failing to disclose what we believe to be a material transaction, likely causing stockholders to suffer significant losses.

The Company also previously blamed the recent occurrences of Nikola trucks catching fire (the “BEV Fires”) on “foul play.” However, after the Phoenix Fire Department found “no evidence at all that supports arson,”¹ the Company recalled the affected vehicles acknowledging that “foul play” was unlikely to have caused the BEV Fires.² We find the facts alleged in a recent stockholder lawsuit concerning the BEV Fires to be extremely troubling and believe they indicate that the Company may have known there were material issues with these products prior to making the “foul play” comments to the public markets. We believe the Board has continually made misleading statements about foul play being the cause of the fires. Again, shortly after making these comments, the Company went on to sell additional shares in the public markets, which we believe caused further significant financial damage to its stockholders. We are deeply concerned that Company executives and management experienced no apparent or material accountability, despite making what we believe to be materially false statements and causing harm to the Company’s value, resulting in the Company being sued by stockholders concerning the BEV Fires.³

Nikola stockholders deserve to know who approved the stock sales and these concerning statements. It appears that no one is monitoring the Company’s public statements or, if they are, who approved these statements and why have they not been held publicly accountable? Unfortunately, we have lost complete faith in the Board and believe its members cannot be trusted to hold those responsible for apparently misleading the public accountable.