By Matthew Russell Lee, Patreon Maxwell book
BBC - Honduras - CIA Trial book - NY Mag
SDNY COURTHOUSE, Sept 16 – In the US v. Trevor Milton trial on September 16, an ex-Nikola designer was cross examined, and a higher-up executive who remains with the company, Dale Prows, was questioned by prosecutors. Inner City Press was there. Thread:
Cross examination of Babiarz, by Milton's lawyer Torrey Young.
Young: You're not an engineer, right? Babiarz: I'm not. Young: And your designing is not just of vehicles - you designed a dog bed, didn't you? Babiarz: Yes. Young: And a yogurt container, right? Yes.
Young: This tweet, it was to Elon Musk , right?
Babiarz: Yes.
Young: Another EV executive active on social media, right? Babiarz: I could say so. Young: It was about the CyberTruck, right? Babiarz: Yes. Young: You thought it was entertainment, yes? Babiarz: At first
Young: You never worked at Tesla? Babiarz: I did not. Young: Are you aware that the Tesla Roadster was built on the Lotus chassis? Babiartz: Yes. Young: But you say the Tesla vehicles are ground up. Babiartz: Yes.
Young: You were given a Nikola stock package, right? Babiarz: Yes, by Trevor himself. AUSA Roos: Objection, your Honor. May we have a sidebar? [Whispered sidebar ensues]
Young: Is this the Nikola YouTube marketing that you appeared in? Babiarz: Yes. AUSA Roos: Is there a proffer of relevance as to this marketing video? [Another sidebar]
Video is played, without much impact. Now re-direct: AUSA Roos: You were asked questions about your other work, including patents? Babiarz: Yes, for the grill, the lights and the tailgate. No further questions.
OK - next US witness is Dale Prows of Nikola.
AUSA Jordan Estes: What's your educational background? Prows: I have a finance degree from BYU. I was head of the hydrogen supply chain, then hydrogen infrastructure development. I'm now the head of Strategic Projects
AUSA: When Nikola went public, did it have any contracts with utilities? Prows: No. [Reference is to Milton's claims on Tesla Charts podcast and elsewhere]
US plays video of Mark Russell and Prows pretending that a Nikola vehicle was quickly fueled with hydrogen at Phoenix headquarters. AUSA: Was it really fueled up there? Prows: No. That would have taken an hour. [So, weren't Russell and Prows part of the fraud?]
With jury out on a 2d break, Judge Ramos says, "Mr. Prows, may I ask you a question, off the record? What happens with the oxygen in the process?" Thread will continue.
They're back. Prows: 65% of the cost of producing hydrogen is electricity... We had acquired a one ton per day electrolyzer, it was stored in a warehouse in Phoenix. AUSA: By Sept 2020 had it ever been used? Prows: No.
AUSA Estes: Do you recognize this email, to Trevor Milton and Mark Russell? Prows: Let me look at it. Milton's lawyer (Bondi) Your Honor, may we approach? Judge Ramos: Sure.
AUSA: Please publish the email. Prows: It's from me to Trevor Milton. It says the capital expenditure would be $160 million. AUSA Estes: So very expensive. Judge: Rephrase Bondi: Objection - leading. AUSA: How did you view the cost? Prows: Very expensive.
After jury break, AUSA continues with Milton on another podcast. AUSA Estes: Mr. Prows, were you ever involved in providing Mr. Milton with talking points about hydrogen? Prows: Never. Now: Transport Topics Roadshow Podcast, March 20, 2022
AUSA Estes: Mr. Prows, whom did you write to here? Prows: Joe Joshi, he worked for me at Nikola. This was about hydrogen. AUSA Estes: Let's play Mr. Milton on this Yahoo! Finance podcast. Milton: We get hydrogen at $4 per kilo. [Contract was for 4 times that]
AUSA: Mr. Prows, so what Mr. Milton said was false? Bondi: Objection! Prows: Yes. AUSA: Do you think it was a statement about the future? Prows: No. He used the word "now."
AUSA: Mr. Prows, were you on Twitter? Prows: No. AUSA: But have you seen some of his tweets? Prows: Yes. AUSA: Here he said, hydrogen at $3, it's game over for diesel. Did you see this one? Prows: Yes. And it wasn't true.
AUSA: Now, the Tesla Daily podcast. Bondi: No objection. On podcast: "When I produce hydrogen I'm paying four cents." AUSA: Was that true? Prows: No.
[This is an Inner City Press question, not one asked in the US v. Milton trial - yet: What are the duties of corporate executives if and when they hear their chairman publicly lying? "Discuss."]
Inner City Press @innercitypress · 1h Milton (on podcast) Hydrogen stations were $40 million, we got 'em down to $15 million. AUSA: Mr. Prows, was that false? Prows: Totally false.
Milton (on podcast) We're gobbling up all the best land so that no one can compete with us. AUSA: Mr. Prows, at that time, was Nikola buying any land at all? Prows: No.
Now email with Prows, about Milton on Tesla Charts pod, "especially the infrastructure section." Prows: It was full of falsehoods. I got this email from Andy, and talked to Pablo. I was concerned.
AUSA: Did you raise it with Mr. Milton? Prows: No. To Mr. Russell.
AUSA: No further questions.
Judge Ramos: We'll let you go 7 minutes early. Don't read about the case.
Afterward Inner City Press for the second time in the week asked Milton a question on Pearl Street. This time, he answered. Video here.
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