Nikola founder Trevor Milton sentenced to four years in prison after inflating value of electric truck firm - which once famously rolled a dummy lorry down a hill in promotional video

The convicted founder of electric truck maker Nikola will spend four years behind bars for lying to shareholders about the firm's progress. 

Trevor Milton was found guilty in October 2022 for misleading investors by claiming Nikola had built a pickup from the 'ground up,' had developed batteries it was actually buying elsewhere and had early success with a 'Nikola One' semi-truck that did not work. 

Most famously the manufacturer was forced to admit it rolled a hydrogen-powered lorry downhill for a promotional YouTube. It made it look like it was travelling under its own power - but it was simply taking advantage of gravity. 

On Monday the 41-year-old was sentenced by US District Judge Edgardo Ramos in Manhattan who also ordered him to pay a $1 million fine. Bloomberg reported that he was in tears as he asked the judge to sentence him only to probation, claiming he was 'not a very seasoned CEO.'

Prosecutors had urged the Judge to sentence Milton to 11 years in prison to mirror the sentence of Theranos founder Elizabeth Holmes who was similar found guilty of defrauding investors in her blood testing startup.

Milton's lawyers said he should get probation, arguing that any misstatements resulted from his 'deeply-held optimism' in his Phoenix-based company which was hoped to be the next Tesla. They added that Holmes' case was different because her lies put people at medical risk.

Defense lawyer Marc Mukasey argued Milton's communications were driven by his 'true belief' in the company as opposed to greed, according to Bloomberg.

Mukasey was reported as saying: 'It was not a nefarious attempt to take advantage of people. It wasn't trained on or aimed at particular people.' 

Milton made the statements about Nikola using social media and in podcast and television interviews as it joined the mounting number of tech and EV companies going public through special purpose acquisition vehicles, or SPACs.

Nikola made its market debut in June 2020 and briefly had a higher market capitalization than Ford Motor Co. - giving Milton a net worth of $4 billion.

But reports soon emerged that Milton was exaggerating the capabilities of one of his prototypes, the Nikola One. He had described it as a fully functional vehicle - despite the fact it had missing parts meaning it could not be driven. 

Short-seller Hindenberg published a report accusing the company of deception about its technology and sent shares plummeting. 

Milton stepped down as executive chairman in September 2020 and was charged by federal prosecutors the following July. 

Prosecutors said he was seeking to inflate the company's stock price and his own net worth.

Milton was convicted on one count of securities fraud and two counts of wire fraud, and acquitted on an additional securities fraud count.

Nikola in 2021 agreed to pay $125 million to settle civil charges brought by the U.S. Securities and Exchange Commission.

The company's shares trade for less than $1, down from a peak of higher than $60 in June 2020.

Milton is expected to appeal the conviction, having already asking for a new trial following the jury's decision. The motion was rejected in August.