Nikola CEO is Leaving the Company After Just 18 Months

Nikola, the electric and hydrogen semi truck manufacturer based in Arizona, announced on Friday that its President and Chief Executive Officer, Michael Lohscheller, is leaving the company with immediate effect. The decision came as Lohscheller expressed the need to return to Europe to address a family health emergency. Stepping into the CEO role is Stephen Girsky, a former General Motors executive who had been serving as the company’s Chairman of the Board. Girsky will assume the CEO position while retaining a board seat, with his appointment taking effect immediately.

Lohscheller’s departure marks a significant change in leadership for Nikola, which has seen a series of challenges since its founding in 2015 by former Chairman Trevor Milton. Milton himself departed from the company in 2021 amidst accusations of misleading investors, and he was later arrested and convicted of fraud. Prosecutors alleged that Milton had provided false information to investors about the progress of the company’s hydrogen- and battery-powered electric semi trucks. Despite his legal troubles, Milton still holds approximately 8% ownership stake in Nikola.

Despite these setbacks, the company has managed to advance in building and delivering trucks to its customers. Nikola reported that it built 96 trucks and shipped 76 battery electric vehicles so far this year, as per the earnings announcement made on the same day. However, the company has reported a net loss of $387 million in the first half of this year, an increase from $326 million in the first half of the previous year. Nevertheless, the company’s loss from continuing operations decreased compared to last year.

This leadership change is the latest in a series for Nikola, with Lohscheller having served as CEO for a relatively short period. He became President of Nikola in March 2022 and took over the CEO role in November of the same year. Under Lohscheller’s leadership, Nikola shifted its focus more intensely on the US market.

Prior to joining Nikola, Lohscheller held executive roles at major automakers, including Volkswagen Group, where he served as the head of Volkswagen USA. Before his stint at Nikola, Lohscheller briefly served as CEO of Vietnamese automaker VinFast, which recently entered the US market with its electric SUVs.

In recent developments, several of Nikola’s trucks were involved in a fire incident at the company’s headquarters. The cause of the fire remains under investigation, and the company had stated earlier that “foul play” was suspected. The investigation into the incident is ongoing.

Following the announcement of Lohscheller’s departure and Girsky’s appointment, Nikola’s shares fell 26% at the market closing on Friday. As the company navigates through these changes in leadership, it faces the challenge of stabilizing operations and addressing the various issues that have emerged since its inception.