Nikola faces fraud allegations from short seller Hindenburg Research

Yahoo Finance’s Alexis Keenan reports on the latest fraud allegations against Nikola.
#Nikola #Nikolafraudallegations #Hindenburg
Short seller Hindenburg Research has doubled down on allegations made last week that Nikola Motor Company (NKLA) spun an “ocean of lies,” calling the electric-truck startup’s response to the allegations a “tacit admission of securities fraud.”

In a statement published Tuesday, Hindenburg rejected Nikola’s response to the claims, saying they failed to dispel doubts about a deceptive video that made it seem as if its Nikola One semi-truck were traveling under its own power at a high rate of speed.

The short seller further criticized the company for purportedly answering just 10 of 53 questions that it said the company should answer for the sake of shareholders.

“In Monday’s response, the company acknowledged that its vehicle was not functioning under its own power, and instead, was apparently simply showcasing the power of gravity,” Hindenburg wrote.

‘Beyond common sense’
The company’s explanation that the truck in the video was merely as “in motion,” Hindenburg wrote, is “beyond common sense.” The short seller pointed to additional representations by Nikola in the description of the video that its Nikola One semi-truck had 1,000 horsepower, and zero-emissions.

“Obviously, the truck can’t have 1,000 horsepower or even 1 horsepower if it doesn’t power itself,” Hindenburg wrote. Hindenburg also quoted the company’s verified Facebook account responses to communications stating that the Nikola One had “over 1,000 HP” and “over 2,000 ft. lbs. of torque” and can handle a “7% grade, no problem”.

“Nikola never stated its truck was driving under its own propulsion in the video, although the truck was designed to do just that,” the Phoenix-based company admitted in a statement following Hindenburg’s initial report that the truck featured in the video titled “Nikola One Electric Semi Truck in Motion” was not driving on its own power, and instead rolling down a hill.

In its response, Nikola referenced a more recent 2019 video that it says shows its next generation model “Two” semi truck driving on its own power.

In its statement published Monday, Nikola also said investors who invested during the period of the Nikola One video, released in 2017 before the company went public, knew the technical capability of the Nikola One at the time of their investment.

However, the spokesperson left unclear whether all investors were made aware by Nikola of the technical capabilities of the Nikola One at the time of the Nikola One In Motion video.

Asked whether all of Nikola’s investors were made aware of the technical capability at that time, a Nikola spokesperson focused on its early partner, Bosch, stating in an email to Yahoo Finance that Bosch was Nikola’s main partner at the time, and that the company was a board member, investor and partner in Nikola’s technology.

“All of our investors were aware of the development and progress with the Nikola Two and how the lessons from [Nikola] One made it happen,” the spokesperson said.

“At that point, technical capability was an incredibly successful proof of concept with the Nikola One,” the spokesperson said. “We pivoted from it to the Nikola Two but everything we learned from the Nikola One has underpinned the successful development of the next Gen trucks. Bosch knows every detail of our trucks and continues today as our partner in our truck development.”

Yahoo Finance reached out to Nikola to request response to Hindenburg’s latest accusations and was assured that the company would issue a response.

Based on the initial Hindenburg claims Nikola said the company’s legal counsel contacted and briefed the U.S. Securities and Exchange Commission (SEC) and intends to fully cooperate with the SEC regarding its inquiry into the matters.

“Nikola welcomes the SEC’s involvement in this matter,” the company said.

According to Bloomberg, the SEC has opened an official investigation into the matter.
For more on this article please visit:
https://uk.news.yahoo.com/hindenburg-research-rejects-nikola-motors-explanation-as-tacit-admission-of-securities-fraud-140253710.html

Subscribe to Yahoo Finance: https://yhoo.it/2fGu5Bb
About Yahoo Finance:
At Yahoo Finance, you get free stock quotes, up-to-date news, portfolio management resources, international market data, social interaction and mortgage rates that help you manage your financial life.

Connect with Yahoo Finance:
Get the latest news: https://yhoo.it/2fGu5Bb
Find Yahoo Finance on Facebook: http://bit.ly/2A9u5Zq
Follow Yahoo Finance on Twitter: http://bit.ly/2LMgloP
Follow Yahoo Finance on Instagram: http://bit.ly/2LOpNYz
Follow Cashay.com
Follow Yahoo Finance Premium on Twitter: https://bit.ly/3hhcnmV

65 thoughts on “Nikola faces fraud allegations from short seller Hindenburg Research

  1. Frank Oberly Reply

    NKLA is funny. GM May look to pull out of this deal

    • Mark Plott Reply

      MARY BARA pulled out of TREVOR, thats what she said…………LOL

    • cat dog Reply

      GM has 100% upside on the deal. GM NEVER invested anything in NKLA. They are getting 11% stake for FREE including 700 million dollars from NKLA investors to build a factory and tooling, 80% of all EV credits, cost plus contract, and rights to keep all IP developed. NKLA brings nothing to them except the premature photoshoped Toyota Tundra and the name.

  2. E Brown Reply

    NKLA is going down. It doesn’t matter whether they’re guilty or not at this point – their responses are weak and mealy-mouthed. If they can’t muster a stronger response than what they’ve shown so far, they can’t survive.

    • Erick Reply

      They have none. That’s the best the lawyers could do. They have Trevor’s on video and twitter lying.

  3. golaizola Reply

    Nikola is an embarrassing scam. Doing a video of the truck going downhill on gravity is just gross.

    • J . P Goodwin Reply

      A technology breakthrough, Elon must be so jealous, Trevor has cracked GRAVITY DRIVE, unlimited power, now to ensure all roads are downhill

    • shepherdsknoll8 Reply

      J . P Goodwin , a new infrastructure project for a new administration. A big graded wedge with the high point on the East coast. Of course the thick part will have to be higher than the Appalachian mountains and all cities will have to be rebuilt. I wonder where we get the dirt – Canada ? Oh well, I’m sure Trevor can fill in the details.

    • golaizola Reply

      @J . P Goodwin 😂😂😂

    • Avimech 85 Reply

      J . P Goodwin I would agree with you, however you have to factor in the energy wasted by towing the truck up the hill with what I’m guessing is petrol burning vehicle. Then again I’m sure a Tesla Model X would have been able to handle the task!

  4. lewizzzy luís Reply

    That’s why you stay private. Public Corp you give up too much info. Unless you want to ca$h out.

  5. RTD Reply

    NKLA calls the cops, “Yeah, I got a meth lab in my garage but you need to investigate my neighbor cuz I think his car is illegally parked on the street”.

    • Live Learn Reply

      Your typing this everywhere ain’t you! Sad sap

  6. Mark Plott Reply

    TREVOR is going to PRISON.

    • Avimech 85 Reply

      I hope the $32 million mansion he’ll have briefly lived in will be worth it when he’s sitting in his cold 8×8 prison cell. Enjoy the food and nightly visits from Bubba and Nasty Nate!

    • Nice Boy Reply

      Avimech 85 wonder what his wife or girlfriend thinks of all this? She should divorce him and marry Elon 😝

    • Avimech 85 Reply

      Nice Boy I’m sure she wishes she could be with Elon, however his standards are pretty high. He only goes for actresses, models or singers 😜

  7. Mark Plott Reply

    NKLA stock to $0 on Wednsday.

  8. I Care Reply

    The no hydrogen network is actually Hindenburg Fraud who is also in the hot seat for insider trading.

    There are 50 hydrogen filling stations in California with 350 more being built. Hydrogen fuel cells are being used in Colorado by Amazon and Kroger.

    • I Care Reply

      @Christian Mone provide verifiable data that Nikola stated they have a Nationwide hydrogen network.

    • Jon Dittmar Reply

      @I Care Nikola has 1 “potential” station. They have nothing built. Why don’t you give out the addresses of the hydrogen stations to prove us wrong.

    • I Care Reply

      @Jon Dittmar
      FACT 1: Nikola has never stated they have more than their current Phoenix location hydrogen fuel station.

      FACT 2: Nikola states they have allegedly ordered the components to build multiple additional hydrogen electrolysis, storage and filling stations from their European suppliers.

      FACT 3: Nikola has repeatedly stated once their hydrogen semi’s are ready for mass production their fleet customers routes will determine the exact addresses for strategic placement that best fits their needs.

      FACT 4: California already has 50 hydrogen filling stations and additional 350 in process.

      Thus, what is your point?

    • David Coxon Reply

      @I Care writing from the UK. Most of these negative posters will be short. They will do all they can to spread fear – all for personal greed. That’s what money does to these people. Sadly UK share sites/boards are full of this type of behaviour. Many call it right but in this instance I fear they are wrong. If Nikola can get out any positive news, then the shorts will fry. Which is always nice to see

    • I Care Reply

      @David Coxon I 100% agree with your assessment.

  9. cat dog Reply

    GM NEVER invested anything in NKLA. They are getting 11% stake for FREE including 700 million dollars from NKLA investors to build a factory and tooling, 80% of all EV credits, cost plus contract, and rights to keep all IP developed. NKLA brings nothing to them except the premature photoshoped Toyota Tundra and the name.

    • J . P Goodwin Reply

      And 80% of the ZEV credits, and Nikola is responsible to build out the Hydrogen charger network.
      Note GM has Hydrogen tech, but useless without charging infrastructure and Nikola is committed to build that at their expense.
      GM wins every way – now their FoolCell vehicles will have fueling stations outside of California

    • cat dog Reply

      @J . P Goodwin Yes and GM due diligence is as a supplier i.e. making sure NKLA can pay up.

    • Informasi Reply

      the news anchor just has no clue.

    • cat dog Reply

      @Informasi Probably pro NKLA….

  10. Rj mb Reply

    We never said its working.
    We never said…
    We never said….
    Poor choice of words for defense.

  11. Mannix C Reply

    Stock down 6%.
    SOON, stock down to 6%
    So CASH OUT NOW, or, CASHED NONE.

  12. Micro Tasker Reply

    So much for ‘forward looking statements’, lol.

  13. kyvanis Reply

    Dude. You’re eloquent but try wiping that annoying smile off ur face when ur reporting.

    • Carl Stockmal Reply

      He has a lovely smile… Please don’t wipe anything off. Let him be his beautiful self.

  14. Angel investor Reply

    Nikola story is super funny

  15. Kyle I Reply

    Had 1 share at 35 sold at 37 ill take my $2 profit lol 😆

    • plugboy91 Reply

      Kyle I 🔥🔥🔥🔥😂😂😂

    • Tony Steel Reply

      😂😂😂

  16. who create GOD? Reply

    THEY REALLY SHOULD NAME THE COMPANY “EDISON”.

    • Tony Steel Reply

      😂😂

    • Kody Eldridge Reply

      daaaamn shots fired XD

  17. Khoa Tran Reply

    What a scam company. Trevor is a total used car salesman.

    • Myles Gray Reply

      Khoa Tran one of his past failed businesses was an online used car sales company.. so he really is a used car salesman.

    • Avimech 85 Reply

      That’s not a fair statement to used car salesmen, they at least sell vehicles that run lol

    • Nice Boy Reply

      Myles Gray lmao

  18. Live Learn Reply

    Nikola has evolved since then your all 🐑 the 🐺 win at this game!

  19. J Boy Reply

    This is a tough call. However, I’ve never seen a stock so clear before. If you own shares of NKLA before they launch, all you have to hope for is that they launch the Badger. The stock should rise quickly. However finding a bottom for this company is a tougher call. For me, pointing out that they have a non-working prototype isn’t news. Every other automaker has done that several times for the Detroit Auto Show! Right in front of the press and magazines.

    • J . P Goodwin Reply

      @J Boy Nikola does not have any tech, for batteries they are providing funds to a universit with no patents and they won’t even indicate which university, that is many years from having mass production advanced batteries. Unlike Tesla that is funding Jeff Dahn at Dalhousie University with hundreds of patents under their belt,

    • cat dog Reply

      They claimed it worked and this was demo-able

    • Jon Dittmar Reply

      Some of the fraud they already admitted to still has 43 more alagations to go . So unlikely this company will make it to the end of this year

    • plugboy91 Reply

      J Boy got chu but that still didn’t answer the questions lol

    • J Boy Reply

      I must say I agree with all the points here. I’m just watching NKLA as a stock. Short sellers are banking on failure. However, if NKLA does produce a truck, it will likely pop faster than all other automakers except maybe TSLA. Not counting LI, NIO, and other EV makers like BYD.

  20. Dandy Finance Reply

    What if they only get a fine of let’s say $50 mill. But their current market cap is over $10 bill. It would be like nothing happened. Interesting times.

    • Myles Gray Reply

      Dandy Finance That could happen. It still doesn’t change the fact that the entire business is based on they idea they can reduce Hydrogen fuel costs by 80%.. and they don’t even produce hydrogen at this time even though they said they did.. The company will still fail! It’s not based on reality.

  21. Philip Ting Reply

    Call the cop to complain being called a thief after caught stealing.

    • Nice Boy Reply

      It’s more like the cop was called on the thief and the thief tells the world he called the cop.

  22. Nahiag Reply

    Showing a video of their Semi truck “in motion”.

    Then using as a defense “we never claimed that it was propelling itself”

  23. HappyYellowBall Reply

    Theranos 2.0

  24. prevail223 Reply

    I am so glad i never bought nikola stock. It always screamed scam to me.

  25. Ramon Benito Reply

    NIKOLA is proactive hoping that the SEC will not look for more.

  26. Udoka Festus Reply

    Trevor madoff is a fraudster period

  27. Tony Steel Reply

    ‘The Adventures of Trevor Holmes and the Honey Badger: Officer Friendly comes to Visit’

  28. rvg Reply

    Yahoo finance referred to Nikola as a baby Tesla a few days ago, haha. In a sense, she was right…Nikola is like a 3 year old who holds up her drawing and exclaims, “Look, I made a truck!”

  29. Duffer 7wise Reply

    next Theranos

Leave a Reply

Your email address will not be published. Required fields are marked *