Nikola says CEO Lohscheller to step down

Electric truck maker Nikola said Michael Lohscheller will step down as CEO less than a year after taking over the job and would be replaced by former General Motors vice chairman Stephen Girsky.

Girsky, who is currently Nikola’s chairman, will be the company’s fourth CEO in as many years. His appointment comes as Nikola tries to navigate a host of challenges including depleting cash reserves, supply chain constraints and a pivot to hydrogen fuel cell technology.

Girsky, who is perhaps best known for his role helping GM after bankruptcy, was head of the special purpose acquisition company that took Nikola public via a reverse merger in 2020.

He also brokered a deal giving GM an 11 percent stake in Nikola as part of a subsequently canceled strategic partnership.

Narrower loss

Separately, Nikola on Friday reported a narrower second-quarter loss as lower production of its Tre battery-electric trucks in the April-June period helped keep costs in check.

Nikola has been struggling with dwindling cash reserves as it burns through cash to ramp up production of its trucks.

Its investors on Thursday approved a proposal that allows the truckmaker to issue more shares to raise funds.

“The company does not need new shares, they need new leadership,” founder, Trevor Milton, said in a LinkedIn post in June.

Milton stepped down as CEO of the company in 2020 after a short seller Hindenburg issued a scathing report that labeled Nikola a “fraud.”

Last month, Nikola said it would liquidate the assets of battery maker Romeo Power, which it acquired less than a year ago for $144 million.

Steve Shindler, who has been a board member since 2020, will serve as chairman after Girsky’s appointment, the company said on Friday.

Bloomberg contributed to this report

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