Nikola Motor Company: Billionaire’s business scores $6.4m stimulus

US rich-lister Trevor Milton is worth a staggering $1.7 billion – but that hasn’t stopped his company from being showered in stimulus money.

Trevor Milton has a personal net worth of $US1.1 billion ($A1.7 billion) and his company has been valued at more than $US3 billion ($A4.7 billion).

But the American businessman’s electric car firm – Nikola Motor Company – has just been paid $US4.1 million ($A6.4 million) in Paycheck Protection Program funds (PPP funds).

The program is a US government stimulus package designed to keep small businesses afloat and workers in jobs during the coronavirus crisis.

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However, the package has sparked controversy in recent days after it emerged a number of large companies worth billions had also qualified.

According to CNBC, Nikola Motor Company recently released plans to go public and merge with VectoIQ, with the deal leading to the company’s multibillion-dollar valuation.

But in a statement to CNBC, the company defended its eligibility for the relief funds.

“There’s a difference between a high valuation and having cash,” the statement reads.

“Nikola is a pre-revenue company with a lot of expenses and burn rate is high.

“Since PPP funds will be used to retain staff, the lifeline follows the spirit of the Act in that we’re preserving high-paying jobs.”

The publication also claimed Mr Milton paid $US32.5 million ($A51 million) for a “luxury ranch in Utah” last year.

The payment has angered many in the US, and Mr Milton has taken to social media to hit back at criticism.

“Yes, we had PPP help our 350 employees stay paid and didn’t reduce payroll. We also hired those laid off. Would you rather them be furlough or not hire others? This is what the PPP was for. It’s unreal you’ll just spread fake news without verifying and tagging me to politics,” he posted in a tweet.

He also denied claims he paid “cash” for his property.

“For the thousandth time! We are not publicly traded. I didn’t pay $30 million in cash for a house, I have a mortgage. I can’t mix personal funds with business. I’m paper rich, not cash. I have donated most of my savings $650,000 to families in need here. Stop spreading lies,” he posted.

The Paycheck Protection Program was originally created as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act, which was passed on March 27.

The health and economic fallout of the coronavirus has been particularly brutal in the US. Picture: Kena Betancur/AFP

Last week, the New York Post reported at least 43,000 American millionaires who were too rich to get coronavirus stimulus cheques would receive an average of $US1.6 million ($A2.5 million) each under the CARES Act.

According to a congressional committee, the act allows pass-through businesses – ones taxed under individual income, rather than corporate – an unlimited amount of deductions against their non-business income, such as capital gains, the Washington Post said.

They can also use losses to avoid paying taxes in other years.

That gives the roughly 43,000 individual tax filers who make at least $US1 million ($A1.57 million) a year a savings of $US70.3 billion ($A110 billion) — or about $US1.6 million ($A2.5 million) apiece, according to the Joint Committee on Taxation.

Senator Sheldon Whitehouse called it a “scandal” to “loot American taxpayers in the midst of an economic and human tragedy”.