Nikola’s Rise

Chapter 5 traces Nikola’s rapid ascent to becoming a $30 billion corporation, with a stock market value that briefly surpassed that of the Ford Motor Company. This rise was largely driven by founder Trevor Milton, who captivated investors with promises of a sustainable alternative to diesel trucks. Milton’s persuasive communication significantly increased the company’s stock value but also made the startup particularly vulnerable. Using the Nikola Corporation as a cautionary tale, this chapter provides an in-depth examination of the methods and tools necessary for startups to overcome initial skepticism and data limitations while avoiding potential crises. It emphasizes the importance of crafting compelling startup narratives while maintaining trustworthiness and structuring arguments in a way that convincingly meets investors’ information needs.