Shares of electric-truck maker Nikola plunged on Monday after its founder Trevor Milton stepped down as executive chairman in the wake of fraud allegations against the embattled company.
The stock plunged as much as 30% in trading Monday morning.
A scathing report earlier this month alleged Milton made false claims about Nikola's proprietary technology in order to win partnerships with large automakers.
The report from shortseller Hindenburg Research came soon after Nikola inked a $2 billion deal with General Motors. GM took an 11% stake in the company and agreed to work together to make electric pickup trucks with the goal of challenging Elon Musks’s Tesla.
Nikola has rejected all the accusations, calling the report 'a hit job' and threatening to take legal action against Hindenburg.
The U.S. Department of Justice and the U.S. Securities and Exchange Commission are said to be probing the claims made in the report.
Nikola named Stephen Girsky, former vice chairman of GM and a member of Nikola's board, as chairman, effective immediately.