Nikola shareholder accused the company of fraud – the head of the company denied this, but the stock still fell

Recently, the manufacturer of electric trucks Nikola Motor, named after the company of Elon Musk, in honor of Nikola Tesla, regularly makes headlines in the media, and often in a positive way. For example, Nikola successfully conducted an IPO and even concluded a major partnership with General Motors.

However, this time the company was accused of fraud. This was done by one of Nikola Motor’s shareholders – Hindenburg Research. On September 10, she published on her website report of evidence found to her that the numerous statements by Nikola’s head Trevor Milton about the company’s technology and tangible assets were a lie.

For example, in the fall of 2019, Nikola talked about its own technology that would revolutionize batteries, but she had to acquire it from another company. But the deal fell through, as it turned out that such technology simply did not exist. At the time Milton found out about this, he continued to advertise non-existent batteries, which led to a rise in stocks. Now, following the deal with GM, Nikola Motor will use the American concern’s battery technology.

Another curious fact that Hindenburg Research talks about: during the filming of the Nikola One truck commercial, the car did not drive on its own – it just went down the mountain by inertia.

In addition, Nikola Motor is accused of lying about reducing the cost of hydrogen production by 81% compared to peers. In fact, the company has never produced hydrogen, which Milton himself admitted under pressure from the media. Likewise, the company is lying about its own gas well – Nikola did not submit any documents to this effect, and later completely deleted this information from its website.

Published by Hindenburg Research provoked falling of the company’s shares by 13%. By words Trevor Milton, shareholder accusations are lies. The company believes that the purpose of this report is speculation in shares.

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