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MarketWatch

Trevor Milton's stepping down as Nikola Corp.'s chairman was "shocking" and will leave investors with some "white knuckles," said Wedbush analyst Dan Ives, as it is now all about execution with the partnership with General Motors Co. a "linchpin to its success." Nikola's stock plummeted 36% in premarket trading, putting them on track to open at a four-month low. "Trevor stepping down voluntarily at Nikola will be perceived by the Street as a major near-term gut punch for the company's lofty EV ambitions as he plays a key role strategically in driving the company's vision," Ives wrote in a note to clients. "In a nutshell, Nikola is still a 'prove me' stock, which speaks to why we are watching this from the sidelines with a neutral rating until we can get more confidence in the EV and hydrogen fuel cell execution story over the next 12 to 18 months." Milton stepping down comes a little over a week after short-seller Hindenburg Research said Nikola misled investors.