In a recent development, electric truck maker Nikola has experienced a surge in stock trading after it was revealed that its disgraced founder and ex-CEO, Trevor Milton, has been ordered to repay the company approximately $165 million in damages. The news came to light through a regulatory filing, causing Nikola's shares to close up by about 9%.

The arbitration panel, based in New York, concluded last week that Nikola was entitled to the funds as compensation for "costs and damages arising from actions that were the subject of government and regulatory investigations." This includes the settlement agreement with the Securities and Exchange Commission (SEC) in December 2021, where Nikola agreed to pay $125 million to resolve charges of defrauding investors by providing misleading information about its products, technical capabilities, and business prospects.

With the ruling in favor of Nikola, the company's market value stood at approximately $375 million by the end of Tuesday's trading session. The successful outcome of the arbitration panel's decision is expected to provide a much-needed boost to Nikola's reputation and further reinforce its commitment to rectifying past misconduct.

Trevor Milton, who founded Nikola in 2014 and held key leadership positions, faced serious allegations after short seller Hindenburg Research accused the company of making false statements to manipulate its stock price and secure partnerships with major automakers. Milton subsequently resigned as CEO in September 2020.

In addition to the ordered repayment, Milton was found guilty in federal court last year on three counts of fraud related to statements made during his tenure at Nikola. He is scheduled to be sentenced on November 28th.

Nikola has also announced its intention to seek reimbursement for attorneys' fees incurred during the legal proceedings. The company remains determined to recover any potential losses and continue striving towards its goals with renewed integrity.

Looking ahead, Nikola is set to report its third-quarter results on November 2nd, just a few days before Milton's sentencing date. This report will provide an important update on the company's financial performance and future prospects.

The positive turn of events, with Trevor Milton being ordered to repay $165 million, has had a significant impact on Nikola's stock price. Investors are optimistic about the company's ability to put past controversies to rest and move forward with a renewed focus on building sustainable electric truck technologies.

As the market eagerly awaits Nikola's upcoming earnings report, it remains to be seen how the company will continue to rebuild its reputation and regain investor confidence after the turbulent period marked by the fraudulent actions of its founder.