Breaking News: Trevor Milton outside at Nikola Motor

Sources near this embattled fuel cell manufacturer are reporting that creator Trevor Milton has resigned as executive chairman of Nikola Motor (NASDAQ: NKLA) and has departed the company effective immediately.

He'll stay as among the organization's biggest shareholders, but will not have a say in how the company is managed going forward. Sources tell FreightWaves the decision has been Milton's, in an effort to protect the organization and his investment. Milton owns approximately 82 million shares or 20% of the business, worth about $2.8 billion.

Milton is the founder of Nikola Motor, creating a vision for a hydrogen-powered trucking market. His remarks concerning the capabilities of Nikola along with the hydrogen-powered trucking network he planned to build have occasionally stretched beyond what is physically possible, leaving several detractors to highlight these statements as proof that the organization is a scam.

Others, including many in the business and suppliers that surfaced with the firm, saw a firm with a grand vision and chance to produce a major effect on the future of transport. If effective, Nikola could significantly lower the carbon footprint from one of the biggest sources of emissions. The EPA estimates that 6.4% of greenhouse emissions generated in the U.S. come from medium- and heavy-duty trucks.

The business has yet to mass produce a product, and all of its revenue thus far came from selling solar panel installation services to Milton.