Nikola Declines as Short Seller Accuses EV-Maker of ‘Deception’
Nikola Corp. shares fell as much as 13% after Hindenburg Research published a reportaccusing the startup electric-vehicle maker of “deception” and lying about its technology.
The report — by a firm that owns a short position in the company’s stock and may stand to gain from a decline in the share price — alleges the maker of electric and hydrogen-fuel-cell heavy-duty vehicles made non-working products appear as fully functional. The report also alleges that Nikola staged misleading videos and told “dozens of lies” about its capabilities, partnerships or products, among other issues.
“Nikola has been vetted by some of the world’s most credible companies and investors,” the truck maker said in a statement to Bloomberg News. “We are on a path to success and will not waver based on a report filled with misleading information attempting to manipulate our stock.”
Trevor Milton, Nikola’s founder and executive chairman, also responded to the report via a tweet, calling it a “hit job” and “lies.” He promised in a subsequenttweet to provide a detailed report to address what he called “one sided false claims”
It makes sense. Tens of millions of shares shorted the last day or two to slam our stock and hit job by hindenburg. I guess everything is fair game in war, even a hit job. I know who funded it now. Give me a few hours to put together responses to their lies. This is all you got?3:29 PM · Sep 10, 2020
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