Nikola Chairman Steve Girsky is taking over as CEO — the startup electric truck maker’s third chief executive in less than a year — as incumbent Michael Lohscheller departs to tend to a family health matter.

The timing of the announcement comes a day after Nikola declared it had enough votes to pass a shareholder proposal to double the number of authorized shares — a pathway to new capital that could allow Nikola to scale its fuel cell truck and hydrogen distribution businesses.

Girsky said that had no bearing on succession planning, which began when Lohscheller informed him of his situation.

“A well-functioning board has succession plans for all scenarios, and we had a succession plan for this one,” Girsky said. “I was happy to step up and move into this role.”

In its second-quarter earnings report Friday, Nikola said its cash position improved in the quarter because it sold off assets, including cashing out of a European joint venture with Iveco.

After paying overdue interest on a $200 million hedge fund loan with sales of the newly authorized stock, Nikola should have sufficient resources to get to three-shift production of 2,400 fuel cell trucks a year.

Girsky is managing director of VectoIQ, a New York-based independent advisory firm that sponsored the special purpose acquisition company merger with Nikola in 2020. He has chaired the Nikola board since September 2020, navigating federal criminal and securities investigations at the Phoenix-based company founded by Trevor Milton.

CEO merry-go-round

Milton, convicted in October on three federal counts of fraud related to lying about Nikola’s progress and prowess in the electric truck and hydrogen space, was the company’s first CEO. He became executive chairman in June 2020, replaced by Mark Russell, who had joined Nikola following a career at Worthington Industries.

In the aftermath of a scathing takedown by short seller Hindenburg Research in September 2020 that led to Milton’s departure, the company reeled from a falling stock price and the collapse of several partnerships, including an equity deal with General Motors.

Russell led the company as it sought to rebuild credibility, and he had some success. But his tenure was cut short in November when his conversion of millions of stock options into cash while running the company spurred the board, led by Girsky, to push him to retire sooner than he planned. It didn’t help that Russell and Milton jointly owned about 39 million Nikola shares. 

Though once his SPAC partner, Girsky is trying through arbitration to get Milton to repay Nikola for tens of millions it paid in legal expenses and reimbursement of a $125 million Securities and Exchange Commission fine Nikola agreed to pay in connection with Milton. The end of the arbitration is getting close, Girsky said Friday. He declined to give further details.

Milton faces sentencing in U.S. District Court in Manhattan on Sept. 22. He has been free on $100 million bail.

Lohscheller known as cost cutter

Months before Russell’s departure, Girsky hired Lohscheller as president. He had previously recruited Lohscheller as CFO and eventually CEO at European carmaker Adam Opel AG when Girsky was chair of the supervisory board of the former GM subsidiary. Lohscheller, a known cost cutter, added the top job at Nikola in November.

Lohscheller is credited with substantially reducing Nikola’s cash burn by more than 30% from Q1 to Q2 2023 and refocusing the business on fuel cell trucks and hydrogen, the original company pursuits. Nikola started as a producer of battery-electric Class 8 trucks but has decided it will build them on by special order rather than in regular production.

Lohscheller also oversaw the layoff of 270 employees in June and the creation of the global hydrogen energy brand HYLA. He will leave Nikola’s board Aug. 31. Lohscheller will remain at Nikola as an adviser through the end of September.

Girsky’s deep background

With the opportunity to deploy the additional shares for fresh capital, Girsky is in his element. In addition to raising the money for the Nikola SPAC as president and CEO of VectoIQ Acquisition Corp., he has more than 30 years working with corporate board executives, labor leaders, OEM leaders, suppliers, dealers and national policymakers.

Girsky worked at GM from November 2009 through July 2014, serving as vice chairman after advising senior leadership as a nonemployee from August 2005 to June 2006. A former managing director at Morgan Stanley, Girsky also was president of Centerbridge Industrial Partners, an affiliate of Centerbridge Partners LP and a multibillion-dollar investment fund.

He said he will be in the Nikola CEO role for the long term.

“I’m here for the long haul, as long as it takes to win,” Girsky said.. 

Editor’s note: Updates with additional Girsky comments.

Related articles:

Nikola cashes out of European JV and refocuses on fuel cells at home. 

Exclusive: Daily stock sales cut short Nikola CEO’s tenure

Nikola clear to increase share count — thanks to Delaware rule change

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