trevor milton has posted $100 million bond, kelly. 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 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 allega

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 priced exactly right, but does the risk consumer loyalty from users that got an allocation and were counting

ed: the company has scaled back its ambitions after trevor milton resigned last september.is making slow progress toward them. i am hearing from sources that they might get to a battery electric truck. they are the prototype phase. they are building a factory in arizona but as yet, not ready to generate anything. they have some big partners, but they are still quite far away. emily: ed ludlow, we appreciate your reporting. keep us posted. a disappointing debut for robinhood's ipo with ceo vlad tenev calling the experience humbling. >> it is really humbling that six years after we launched our products to the public, we have over 22 million customers and are on this journey with our customers, and allowing them to participate in the offering. ♪ emily: welcome back to "bloomberg technology." i want to get back to the days market moves, including one of this year's biggest ipo's, robinhood hitting the nasdaq. pretty good back with us. -- kriti gupta back with us. kriti: let's look at the intraday charge. when you see this downward trajectory, the ipo price was $38. you saw thi

ed: they claim that trevor milton over the course of the year between 2019 and 2020 when he stepped downssentially lied about all aspects of the business. he said the company was producing hydrogen at a significantly lower cost than others, and in fact, according to this indictment, they weren't producing any hydrogen at any cost. they were developing the technology and the trucks. they could not do what he said they could. emily: or even move forward according to what the prosecutor said. ed: that was a reference to a report we did last year, in 2016 he had a coming out moment, he stood on stage with a truck behind him that he said was fully functioning, even joking they had to chain it down to stop people driving offstage. but according to sources, there was nothing in the truck, none of the parts he would need to make it work, and what the indictment said is that bloomberg report was accurate, we got it spot on but what is more shocking is that he texted with executives after he tweeted , dismissing the bloomberg report and then texted a board member to say his tweet had been supporte

but at the time we were that story in june 2020, there was a tweet trevor milton made countering theng. but according to the indictment, he actually texted executives and board members to say that his tweets were supportive of the stock after it had fallen after that reporting. so he was really paying close attention to that. dani: thanks so much for staying on top of this for us. that is our ed ludlow. we also have another headline coming out from robinhood, now indicated to open up 38 dollars six cents -- open at $38.06. it was priced at $38. we will be speaking with robinhood's ceo on his company's debut on the nasdaq. that is next. 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, relieve back pain, and tone your entire body. since i've been using the aerotrainer, my back pain is gone. when you're stretching your lower

. >>> billionaire trevor milton charged with fraud. the founder oaf an electric truck company that prosecutors say never produced a single electric truck. gave the false impression the truck was actually drivable. >>> could mililddd m m mdd m mi e bus slamming into a bridge.wrk more than a dozen people more than a dozen people injured. >>> good evening and it is great to have you with us on this thursday night. i'm cecilia vega, in for david. and we do begin with president biden using the power of his office, hoping to convince the unvaccinated to get those shots. the white house announcing today that more than 4 million federal employees will have to show proof of vaccination or follow strict testing protocols. the president calling it an american tragedy that people are dying who do not need to die. and he is hoping to convince private companies to follow suit. google, facebook, netflix and others asking their employees to be vaccinated. the surge in cases may already been convincing some who are reluctant to be vaccinated. the u.s.

he is trevor milton. the u.s. attorney in new york on seals and indictment against trevor milton. on this. i believe there is a scheduled press conference at 11:00. bloomberg will be following this on the island of manhattan this morning. right now, this is really important for your infrastructure, we go to the gentleman from flint. dan guilty is someone -- dan kildee is someone with a view of america different from inside the beltway in washington. dan, you and your family and your constituents have lived the worst water crisis in america. you know better than anybody about lead pipes, about water structure. is this bill good for flint, michigan? >> it is hard to say. it is a step in the right direction. the question is whether or not there is enough of it emphasis on water infrastructure to prevent the next flint, michigan from happening. ironically, flint has some advantage in the fact that the failure of flint's infrastructure occurred in public view. i was able to get help for flint even when i was in the minority to protect the red -- to protect the lead pipes. will the warn

and after the fact, trevor milton took to twitter to basically deny the allegations in that story.then, according to the indictment, texted a board member, saying his tweets supported the share price. that is another tie-in with the concern the doj had. haidi: what happens next? ed: he has been released on bail, having pleaded not guilty. the terms of the battle confine him to the state of-- bail confine him to the state of utah. it will go to trial. it is not a huge surprise he pleaded not guilty based on his time as ceo, his social media posts, the combative nature he went after people that criticized the company. shery: could this have any broader implications for the industry? ed: nikola was kind of seen as this front runner in fuel-cell technology. fuel 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

threat of inflation americans go back to work in schools were open and extra benefits expire and trevor miltonndicted for misleading wall street about the electric vehicle company that is a lesson for investors, on the barron's roger ben levisohn, carleton english and dachau. so many headlines this week, we had the scary delta variant filling hospitals from florida to kansas, fed meeting and then the gdp numbers came in that were strong but not as strong as expected and investors shrugged. >> there's good reason that the investors shrugged, none really matter the fed did not do anything, the gdp raging should 6.5% growth, what it does care about his earnings, nearly 90% of the companies that are really so far have topped the earnings expectation, even though the s&p 500 fell 0.4% more than 300 of the companies in the index finished higher the equal weight to s&p 500 and the russell 2000 finishing up this week and that could be investors are willing to put the back to benefit from a reopening as delta might has gotten as bad as it's going to get. gerry: i sure hope so the small caps are getting

. >>> 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 >

according to an indictment unsealed on thursday, 39 year old billionaire trevor milton, who stepped down as chairman of the company in september, is facing 2 counts of clarity's fraud and one count of wire fraud. milton is also facing civil securities fraud charges from the fcc, which were filed thursday. prosecutors accuse him of lying about nicholas product and taking advantage of inexperienced investors when the company went public by a special purpose acquisition company, better known as a spec, the indictment state. milton scheme, targeted individual nonprofessional investors, so called retail investors by making false and misleading statements directly to the investing public through social media and television print in podcast interviews. the grand jury says milton should for all property earn due to the scheme which would likely include the more than $1000000000.00 earned. when the company went public on the news. nicholas stock was down as much as 11 percent on thursday, but is down more than 70 percent from all time highs in september of last year. so more on all of this and so

trevor milton, prosecutor say, lied about almost every aspect of the business.ecame 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 we are raising our outlook for this year. >> chips aren't the only problem, we have heard from a lot of businesses that due to the resu

we've done it. >> reporter: now the founder of nikola motor company, trevor milton is being charged withurities fraud. >> 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 retireme

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 stand this hour. the dow up 220 points, nea

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 >>

we can see it right now, down nearly 11% after the founder and former ceo trevor milton was officially charged today with defrauding investors. the billionaire entrepreneur indicted on two counts of securities fraud, one count of wire fraud. federal prosecutors in new york say milton lied to investors about every aspect of nikola's business including saying that prototypes of the ev badger that they showed to perspective investors, that's the badger truck, were fully functioning, that's what he said, when in truth the trucks had been towed to display floors and were powered by plugs hidden in wall sockets. the sec has filed civil charges against milton. milton has pled not guilty. to a much more electrifying story, ford raising its profit outlook, also managed to dodge speed bumps incurred due to the semiconductor shortage. the stock moving higher by 4% right now and, get this, preorders for ford's all-electric f-150 pickup truck really lighting up. since may when ceo jim farley broke the news right here on "can the claman countdown" that ford already had 70,000 orders, reservations ar

regarding nicola and the ability for semis and videos shot weren't accurate at the time ultimately, trevor miltonm. now no more than a supplier and customer arrangement even though they are not yet providing any product. former ceo of nikola to be charge charged today. >> stock is plunging pre-market. phil, thank you. >>> we'll get back to that bre breaking economic data to break it down for us peter, it is good 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 f

trevor milton indicted on 3 counts of fraud.rly 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 in the fall. >> we will try to open up schools