charges are not against nikola he has nothing to do with the company.re charges strictly to trevor milton. his legal team has issued a statement saying trevor milton is innocent. this is a new low in the government's efforts to criminalize lawful business conduct. every executive in america should be horrified. trevor milton has posted $100 million bond, kelly. we'll see how this plays out over the weeks and months to come >> $100 million bond is a humongous number, phil so -- >> reporter: sure. secured by-t two $40 million properties >> what about the company now? has there been a leadership complete change? i get nikola and lords town confused >> reporter: yes >> what's the status with the company and the ability to try and salvage all of this? >> reporter: once they bounced trevor milton, and he left -- i want to say october/november i don't know the date, but it was pretty clear once the gm deal fell apart, the hindenburg allegations from that firm came out and they said, look, all this is a house of cards, trevor milton left nikola and they have sp

by the way, we reached out to nikola nikola issued a statement and emphatically saying these charges are with trevor milton they are not against the company. we have nothing to do with trevor milton anymore. as for trevor milton, cnbc reached out to his representatives, we have not heard a statement from him i suspect that he will be making some type of an appearance, whether today or the next couple of days, but, guys, this is a chapter that not a huge surprise given the allegations that were first laid out by hindenberg research, a short seller, which ultimately led to milton leavin nikola motors last year and now the u.s. attorney's office filing charges, saying front and center, he lied repeatedly about the development of these vehicles >> phil, an incredible story and that stock was around $80 at one point. thank you. we know you'll bring us any more developments let's get back to robinhood. early investor jason calacanis with us now. we're looking at the early indications, but how do we judge this ipo and its pricing, if it opens at $38, which it is indicated to do so, was if p

nikola's founder is being charged with making false statements to investors.hares are down the most in five months. bloomberg's ed ludlow has been following nikola. is reporting is also mentioned in the indictment. walk us through what we know so far. ed: trevor melting is accused of making misleading or false statements between 2019 and the end of his tenure of exec you at -- of exec of chairman at -- of executive chairman at nikola. just to cite a couple of examples, trevor moulton claimed the company was producing hydrogen to power those fuel-cell trucks at a significant cost versus the market, when according to the complaint, nikola was not making any hydrogen at all, at any cost. it references a bloomberg report from 2020, a story about the company's coming out moment in december 2016, when he stood on stage with a truck behind him. he claimed the truck was "not a pusher," industry parlance for it actually works. but according to sources, it was not operable. it was missing key parts that would have in theory made it capable of working, and the complaint

ed: nikola was kind of seen as this front runner in fuel-cell technology.l cells use hydrogen to power an electric vehicle system, rather than a pure battery. they have not made any progress. they were also the poster child for spac's. their market cap was more than ford's at one point, $29 billion. they made little progress on their technology. they are still pre-revenue. they are still in prototype phase. investors have to think again about how they treat these companies that have chosen to go public via spac with promises about new vehicle technology. shery: coming up, we speak to the former federal reserve bank of philadelphia president and ceo charles plosser about why he thinks the fed is in a pickle. that exclusive interview just ahead. this is bloomberg. ♪ (announcer) back pain hurts, and it's frustrating. you can spend thousands on drugs, doctors, devices, and mattresses, and still not get relief. now there's aerotrainer by golo, the ergonomically correct exercise breakthrough that cradles your body so you can stretch and strengthen your core, reli

and we have more breaking news on nikola. yes, the ceo has just been released from prison because he posted bail. we'll get more on that in a minute. but let's get to that first day of trade for robinhood. after dropping by as much as 10% after its open, which happened just before 12:30 p.m. eastern, shares of the online trading app climbed back a bit, still down 4.5%, standing at $36.19. arguably the most hotly anticipated ipo of 2021. it priced at 38 a share, that's the low end of the range, and when it opened, it eached right there, $-- opened right there, $38 a share. the regulatory risks kind of makes viability unclear, so why invest in it? we bring in the very first investor robinhood was able to nail, venture capital legend and draper associates founding partner tim draper who in 2013, what, you granted the company 300 grand to help them get their broker-dealer license? today the platform has close to 23 million accounts. what's your 30 grand investment -- 300 demand investment today? >> almost a thousand times. but it

coming up, the founder of nikola in court after being charged with making false statements to investors will find out what he said ny prosecutors say his claims don't start up. those details next. and we want to take a look at how disney shares ended the day, the company is being sued by actress scarlett johansson started in the latest marble installment, black widow. she is accusing dizzy -- disney of breaching her content desk contract i releasing the film on disney plus and in theaters of the same time. this is bloomberg. ♪ emily: shares in the electric truck maker nikola plummeting 16% stake, founder and former chair trevor milton appearing in a court after being charged with misleading investors. the indictment claims he made false statements about the product and technology. we are outlining one of those claims. >> milton claimed number one, which is -- one of the early prototypes in the business could be driven, when in fact, the closest it came to driving was when a group of nikola engineers got to the top of the hill and rolled it down for a commercial. emily: joining us is ed

the bridge to possible. >>> nikola shares are under pressure after trevor milton has been indicted.> milton has pled not guilty. here's video of him leaving the courthouse he didn't say much, but this is the case where he's been accused by the doj as well as the s.e.c., they say he repeatedly and brazenly misled investors about the development of nikola products he's posted a $100 million bond. his team has said from the beginning this has been an investigation in search of a crime. , so that means a strong -- not against -- and trevor milton has not been running nikola since he left the company last september. a note today moving to strong sell, saying this could essentially create a number of negative stories that could be hanging over the company to come they have a report on tuesday. guys, back to you. >> you know, phil, the government's allegations here in the indictment track pretty well with that initial short seller's report that hit nikola a while back it's kind of a lesson that the shorts get the goods, at least here, of course with allegations that it's on the up and up >

. >> reporter: but prosecutors say the trucks built by trevor milton's company nikola didn't work at all, that milton lied about nearly every aspect of the business. >> milton tweeted a video where the truck appeared to be driving, but actually it was brought to the top of a hill and just allowed to roll down. >> reporter: prosecutors claiming the truck's door even had to be, quote, taped up for the video so it wouldn't fall off. in fact, the nikola prototype was allegedly "untested" and "missing critical parts" like gears, motors and a control system. 12i8 still, milton convinced investors he'd pulled off a breakthrough. >> for every doubter out there tat said there's no way this is true, how can that be possible? we've done it. >> reporter: milton allegedly the complaint charges some even lost their retirement savings.uy >> we have a statement. check it out. >> reporter: cecilia, milton's attorneys say he is innocent, calling this federal case faulty and incomplete, adding that from the beginning, this was an investigation in search of a crime. milton has been released on $100 mill

prosecutors charging nikola founder trevor milton. >> you had a great interchange with him initially >> carl. >> and robinhood set to make its public debut valued at 32 billion after pricing toward the bottom of the range, and that's where we're going to begin, jim. a lot of discussion about going to the bottom because they want this to work perhaps >> exactly but what i want to be sure of is that goldman understands that vlad is trying to do the right thing by people, and i point that out because there are a lot of disparate groups that are in the stock that he's giving to people, and i don't think goldman's all that sensitive one bit to what vlad wants to do i think they're treating it as a traditional ipo. i think vlad is doing anything but traditional. what we don't want is what leslie picker talked about, every deal north of $2 billion has broken print. >> i thought that was an interesting stat that leslie shared with us yesterday the big deals have not done well. >> what should you do if you're goldman? you price it so that it works. >> okay. which do you think they did that >>

former ceo of nikola to be charge charged today. >> stock is plunging pre-market.to see you this morning inventory. we know there have been all kind of shortages and semiconduct y ors. should we be focusing more on the restocking in coming weeks and months and how they've played out in balance sheets and equities >> that is something we need to look forward to. the question is what quarter does that pickup we just will that fed reading, how do we square this? >> i'm of the belief that you need stable prices to have healthy growth where the fed is twisting it around and slowly focused on maximum economy we are seeing the stacks here and there where shortages are shutting down auto plant lines and the building of houses delaying the delivery of that house and a lot of friction did you see that happening soon. just the first one for q 2 right now. the first conversation coming into this about those earnings, is that the big question now >> how much inflation eat to real growth. the higher the inflation, less the real growth we see i think that is the big risk in that

. >> reporter: now the founder of nikola motor company, trevor milton is being charged with securitiesud. >> do you have anything to say? >> we have a statement. check it out. >> reporter: milton seen leaving a manhattan courthouse thursday charged by federal prosecutors who say he lied about every aspect of his truck of the future. >> milton claimed that the nikola one could be driven when, in fact, the closest it ever came to driving was when a group of nikola engineers took it to the top of the hill and rolled it down so it could be filmed for a commercial. >> reporter: prosecutors claiming the truck's door even had to be taped up for the video so it wouldn't fall off. the indictment saying that early prototype was missing sgnificant parts like gears, motors and a control system, though milton called it fully functioning. >> this truck is by far the most state-of-the-art truck ever built in history. this thing fully functions and works which is really incredible. >> reporter: it was claims like those that misled investors resulting in loss of up to $100,000, even retirement savings

alix: nikola took all the headlines when it came to hydrogen fuel cell heavy trucks.he same thing? do you do something different? did you benefit from them not doing well with their use case getting out there? craig: the nikola vision was very useful to help spur on some of the discussion around the potential for hydrogen in trucks, but i want to point out that hyzon motors is not pushing new technology. this is almost two decades. many of our core personnel have been working in hydrogen for over 20 years. we are bringing a proven technology into the market which is begging for decarbonization solutions. alix: as we just heard from jim barry. thanks a lot. i know it is a tough tape, but congratulations on the ipo. craig: i never thought i would be happy to be down 7%. alix: i know, you are only down 7%. [laughter] this is bloomberg. ♪ alix: equity selloffs off the lows of the session, but still pretty ugly. s&p off by 1.7%. still down by 10 basis points on the 10 year. stuart kaiser joins me now. he heads up derivatives strategy for ubs. what do you do on a day like t

milton left nikola and they have spent the last nine months trying to resurrect their business and go forward and say, look, what trevor milton said we were all about, we are not about that. and there have been a few instances where there have been those who have said, look, there's potential here for this company. let's be clear, they are not involved in any of these allegations. >> phil, thank you phil lebeau with the latest on nikola that does it for "the exchange." "power lunch" starts right now with frank holland in for tyler. >>> robinhood's rocky start, the stock dropping below its ipo price as investors turn cautious >> our growth is organic and word of mouth. we think we've scratched the surface. >> robinhood ceo is betting his fast-growing company will grow even more. a prominent venture capitalist sees risk. >>> a ceo triple play, raymond james, international paper and realogy out with earnings and with a distinct take on their corners of the economy we'll also find out where they stand on mandating vaccines. "power lunch" starts right now >>> and here's where the markets s

the founder and former chairman of nikola has been freed on a $100 million bailout after pleading not of making all statements to investors. trevor milton, prosecutor say, lied about almost every aspect of the business. the 39-year-old became a billionaire after nikola went public in a back field last year -- in a stack -- spac deal. kathleen: one of the early prototypes in the business could be driven when in fact the closest it never came is when a group of engineers pitch -- posted to the top of the hill and rolled it commercial. haidi: limiting the fallout from the global chip shortage, allowing europe's biggest carmaker to raise its outlook. they are confident the automaker will recover in the fourth quarter. >> i think we have overcome chip shortage is so far quite well, so we could manage and we could have -- we have been prioritizing in china. also, we got through this quite positively in the first half. we're going to see some hits now in the third quarter because production constraints. we are managing through, but we are confident we can recover in quarter four. this is why

nikola shareholders shooting down an executive proposal salary bonus and stock awards. last hooray before switching over to evs. it will go on sale next spring and start around 85,000 bucks. good looking car probably a little tight if you're over 6 feet we're back in a moment e fighter. that's why the alzheimer's association walk to end alzheimer's is full of them. because flowers find a way to break through. just like we will. join the fight at alz.org/walk wondering what actually goes into your multivitamin? at new chapter, its' innovation, organic ingredients, and fermentation. fermentation? yes. formulated to help you body really truly absorb the natural goodness. new chapter. wellness, well done. >>> time now for your morning rbi. real estate and more windows into this ridiculously red hot market around america. if you think your city is hot, did it make the list there is a list. realtor.com put together a list where homes are selling the fastest from the time they are listed out of 250 metro areas they analyzed here are the top three where demand is vastly greater

elon musk, that's a slap to the face of nikola tesla.oing what thomas edison did with the battery. tesla had what was called free energy where once you set the machine in operation, it continuously runs without any fuel or any other apparatus whatsoever. host: robert, there, d.c., this is stanley in massachusetts saying that we are doing too little. go ahead. caller: first of all, i sent to mr. biden and to obama a letter four years ago, or five, i should say 2016, november. discussing and telling what was required to take and turn around global warming. the one thing that will turn it around, you have to take and bring out the acidity of the oceans. plankton has to come back to grow. and then the atmosphere, the sky will turn from light blue to dark blue, mostly navy blue, deflecting 80%, i should say 15% of the sunlight off of earth. host: did you ever get a letter back? caller: yes, i did. yes, i did. host: what did it say? caller: they said that we joined the paris agreement. that's not science. they will never do anything. if we sta

they have advanced reservations, forward up 6% and the electric vehicle startup nikola.nts of fraud. prosecutors say he lied. >> nearly all aspects of the business, charging billionaires, resigned as chairman, two count of securities fraud, and wire fraud, cooperated with the government to the course of this increase but nikola was taken down, they were overselling the capacity for the capacity of hydrogen powered trucks. they have taken a hit because of that. stuart: let's look at the dow winners, top performers on the dow 30, up 2%, chevron, american express, the s&p 500 winners. >> you say that so well so early. stuart: i had to squint to read it off the screen. ford is up 6% at 1472. the nasdaq winners, cognizant tech solutions, qualcomm, big winners today. >> they had a good earnings report. stuart: we call those people s when the stock went straight up. we are told to mask up. what about the border? migrants with covid walking into the country, the administration does nothing about it. groundhog day, head of the teachers union will not commit to reopening schools i

we've seen nikola and all the rest of it this is an area where there's basically regulatory probes. and is his candid take on it, you think, a way to actually fend that off by saying, listen, we don't know if it's going to work >> yeah, kind of and i also think it's sort of false humility the cyber truck has already been a smashing, so to speak, success, and that's because of the marketing they've got. you know, they have something like 500,000 orders. but to get an order you only had to put down $100 and it's kind of like the roadster, which was announced in 2017 but have we seen it yet? no we haven't even really seen what it's going to be and there are a lot of orders for that, people putting down $100,000 or more so, these are small relative to the overall important models of tesla. and whether they sell or not, whether they even go into production or not kind of doesn't matter because the ora that they've gotten from the marketing of these vehicles is huge so, i think it's already been a success, and anything they actually make, if they do, is a bonus. >> yeah, farah, to that po

a big focus for investors, nichola chairman pleased not guilty, nikola, charging him with criminal fraudhe maker. milton's legal team he's he is innocent of the charges and wrongfully accused following a competent investigations. by the way, the securities and exchange separately filed fraud charges of its own and asked a federal court to permanently ban milton from acting as an officer of any company that issues securities. by the way, milton was freed on a $100 million bond. and then disney says there is no merit to the lawsuit filed by scarlett johansson, the scar of marvel's latest blockbuster, black widow. she alleges they blocked the contract on streaming at the same time it was in theaters. disney says it complied with johanneson's contract and the movie significantly enhanced her ability to earn additional compensation on top of the $20 million she's already been paid. now the lawsuit argues the dual release of black widow reduced her compensation, guys, partly based on box office receipts from what was originally supposed to be an exclusive run in the theaters, back over to you.

nikolas cruz is seen lunging at the officer and wrestling him to the ground while singing at him.d with first degree murder in the february 2018 shooting at marjorie stoneman douglas high school. that left 17 people dead check your cabinet johnson & johnson recalled five sun screens over potentially harmful chemical. the company says low level of benzene were found in those sun screens. known to cause cancer with repeated exposure. all five products come in aerosol cans. into the screen. >> beach defense. cool dry sport. up visible daily defense. ultra shear and protect and refreshments a big break for legendary horse trainer bob baffert. a federal judge nullifies the suspension allowing him to enter horses in the saratoga meet that kicks off today. the judge ruling the suspension was unconstitutional because baffert was not given a hearing after his horse medina spirit's positive drug test at the kentucky derby. baffert denies any wrongdoing. and the running of the ghost is back in new york city. the weed backing herd of two dozen ghosts making their rounds across city parks in a