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Short seller rejects Nikola’s explanation as “tacit admission of securities fraud”



NKLA) created an “ocean of lies”, calling the electric truck startup’s response to the allegations a “tacit admission of securities fraud.” “data-reactid =” 16 “> Short seller Hindenburg Research doubled down on allegations made last week that Nikola Motor Company (NKLA) created an”

; ocean of lies “, calling the electric truck startup’s response to the allegations a “tacit admission of securities fraud”.

declaration published Tuesday, Hindenburg dismissed Nikola’s response to the claims, saying they failed to dispel doubts about a deceptive video this made it appear that his Nikola One semi-truck was traveling with its own power at a high rate of speed. & nbsp; “data-reactid =” 17 “> In a statement released Tuesday, Hindenburg dismissed Nikola’s response to the claims, claiming they failed to dispel doubts about a deceptive video that made it appear that his Nikola One semi-truck was traveling by its own means at a high speed.

Hindenburg Research Twitter post September 15, 2020

The short seller also criticized the company for allegedly answering only 10 of the 53 questions it said the company should answer for the sake of shareholders.

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

“Beyond common sense”

The company’s explanation that the truck in the video was simply “moving,” Hindenburg wrote, “beyond common sense.” The short seller indicated further statements from Nikola in the video description that his Nikola One semi-trailer 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 cited the company’s verified Facebook account responses to communications stating that the Nikola One had “over 1,000 HP” and “over 2,000 foot pounds”. of torque “and can handle a” 7% gradient, no problem “.

The CEO and founder of U.S. Nikola, Trevor Milton speaks during the presentation of his new fully electric trucks with hydrogen fuel cell batteries in collaboration with CNH Industrial, at an event in Turin, Italy, on December 2, 2019. REUTERS / Massimo Pinca

declaration following Hindenburg’s initial report that the truck featured in the video titled “Nikola One Electric Semi Truck in Motion” it wasn’t driving with its own power, but instead rolled down a hill. “data-reactid =” 60 “>” Nikola never claimed his truck was driving with 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.

video which he says shows his next-generation model “Two” semi trucks driving with his own power. “data-reactid =” 61 “> In his response, Nikola referred to a more recent video from 2019 which he says shows his next-generation model” Two “semi trucks driving on his own power.

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

However, the spokesperson left unclear whether all investors had been briefed by Nikola of the Nikola One’s technical capabilities at the time of the Nikola One In Motion video.

Asked if all Nikola’s investors were aware of the technical capability at the time, a spokesperson for Nikola focused on his first partner, Bosch, stating in an email to Yahoo Finance that Bosch was Nikola’s primary 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 Nikola Two and how the lessons from [Nikola] One made it possible, ”the spokesman said.

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

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

Based on Hindenburg’s initial claims, Nikola said the company’s legal counsel has contacted and informed the United States Securities and Exchange Commission (SEC) and intends to fully cooperate with the SEC regarding its investigation into the matter.

“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.

@alexiskweed.“data-reactid =” 76 “>Follow Alexis Keenan on Twitter @alexiskweed.




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