Nikola Declines as Short Seller Accuses EV-Maker of ‘Deception’

CEO Milton took to Twitter to refute the allegations in the report

This bombshell was reported on Thursday showing the forensic final research given from a particular Hindenburg Research that was able to compile evidence that revealed that Nikola, along with its founder Trevor Milton, has not actually been entirely honest about the status of its trucks or even the whole powertrain system.

The startup allegedly used the smoke-and-mirror tactics in order to land in some of the big-name partners all the way from General Motors to Bosch. This was a hit job for short sale profit driven by greed.

The Phoenix-based company said it meant to bring the actions of the activist short-seller, along with evidence and documentation, to the attention of the U.S. Securities and Exchange Commission.

Milton fired back at the allegations in a tweet on Friday, accusing Hindenburg of wanting "max damage" with "false and deceptive" statements. To be clear, this was not a research report and it is not accurate.

"Nikola has been vetted by some of the world's most credible companies and investors", the company said in a statement. Andrew Left of Citron Research in June told Business Insider he had taken a short position against the stock, saying "I don't think they will ever get a mass-produced vehicle", and dismissing the company as a "wannabe Tesla". "Our company delight in that Nikola is actually involving along with the SEC and also our company are actually certainly not amazed that Trevor Milton is actually certainly not commenting even more on suggestions of advice", he pointed out in a telephone call. "We look for similar man-made disasters floating around in the market and aim to shed light on them before they lure in more unsuspecting victims", according to its website.

Nikola stock was down five percent, trading at $32.58 at the time of writing on Friday. Shares fell 12pc after the report was released. It thanked Hindenburg in a tweet, offering to pay for half of any legal expenses incurred. Hindenburg refers to that story in a portion of its report. The shares have risen about 7% since the company went public through a reverse merger with a blank-check company on June 4.

Tesla CEO Elon Musk has blamed some of the company’s negative issues on short sellers in the past
Tesla CEO Elon Musk has blamed some of the company’s negative issues on short sellers in the past

Nikola's shares were last down 16%, after closing down 11% on Thursday.

General Motors (GM +0.7%) is higher on the day as the sideshow playing out between Nikola (NKLA -12.9%) and Hindenburg Research devolves into legal threats and Twitter blasts (see Trevor Milton, see Citron Research).

The bargain dedicated GM to making the start-up's launching electrical pick-up, named the Badger.

"We are fully confident in the value we will create by working together", GM said in a statement.

Filings with USA regulator the Securities and Exchange Commission show Nikola expects to use GM's battery technology, despite having claimed earlier to be developing batteries in partnership with a company it planned to acquire, and later with an unnamed university.


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