Short-seller accuses Nikola of fraud after its $2 billion GM deal

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

Shares of electric automaker Nikola - which like Tesla is named after the 19th-century inventor - were down more than 15 percent Friday afternoon after a report from Hindenburg Research accused founder Trevor Milton of lying about his company's tech in order to score a major partnership with General Motors.

GM said on Thursday after the Hindenburg report that it stood by the comments it had made in announcing the alliance and it was "fully confident" in Nikola.

Nikola went on to say the report was a "hit job for short sale profit driven by greed" and they'll "bring the actions of the activist short-seller, together with evidence and documentation, to the attention of the U.S. Securities and Exchange Commission".

The latter is happening as Nikola said "We have retained leading law firm Kirkland & Ellis LLP to evaluate potential legal recourse, including with respect to the activist short seller and any others acting in concert".

One of the biggest claims from the Hindenburg report is the suggestion that Milton's statements during a July 2020 podcast directly indicate that the Nikola Tre was rolling off of production lines at a company facility in Europe. "To be actually very clear, this was actually certainly not a research study record and also it is actually certainly not exact". In reference to earlier pledges to provide a "detail report" to address Hindenburg's claims, he hinted in another tweet that might take time. "It will be released as soon as they give me the green light", he said.

Hidenburg Research's founder, Nathan Anderson, said he welcomed Nikola's pledge to petition securities regulators. "We detailed dozens of misrepresentations by Nikola founder Trevor Milton", the report said.

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

That set off a two-day plunge in the stock that sent it back below the US$33.75 close on June 4 when it gained its public listing.

"Congrats to Hindenburg for exposing what appears to be a total fraud with $NKLA", Citron tweeted, adding that the short seller will cover half of all legal expenses for Hindenburg.

Nikola Declines as Short Seller Accuses EV-Maker of '.

Nikola was little-known before it went public in early June through a reverse merger with a blank-check company. At one point, Nikola shares had ballooned to nearly $80 a share, giving it a market capitalization greater than Ford Motor Co. despite not generating any meaningful revenue. Hindenburg refers to that story in a portion of its report.

A $14bn Tesla rival developing hydrogen and electric trucks has been accused of misleading investors in an "intricate fraud", just days after General Motors took an 11pc stake in the company. The Detroit titan likewise will definitely deliver fuel-cell and also electric battery modern technology for Nikola's semi vehicles, which result from be actually developed at a manufacturing plant incomplete in Coolidge, Arizona.

1,000 people voted twice in state primary — Georgia
It's a minimum of one year in prison, up to 10 years, up to a $100,000 fine. This represents 66% of the 1,758,873 votes anticipated at this time.

Related News:

  • Moria migrants protest in front of burnt-out camp

    Moria migrants protest in front of burnt-out camp

    A new permanent reception and registration centre for asylum seekers would avoid "the problems of Moria", he added. On Sunday, local media reported that 21 more migrants had reached the northern shore of Lesbos island.
    Vaccine confidence volatile, vulnerable to misinformation, global study finds

    Vaccine confidence volatile, vulnerable to misinformation, global study finds

    The researchers analysed data from 290 nationally representative surveys conducted between September 2015 and December 2019. This, Larson said, was linked to trends in political instability and religious extremism in these countries.
    Euro Rises after ECB Decision

    Euro Rises after ECB Decision

    The spot gold-to-silver ratio now stands at 72.50 to 1, which means the amount of silver required to buy one ounce of gold. Gold and silver prices in India have struggled for direction after hitting highs of ₹56,200 and ₹79,723 last month.
  • COVID-19 vaccine trials resumed by Oxford University and AstraZeneca

    COVID-19 vaccine trials resumed by Oxford University and AstraZeneca

    The hiccup shows how risky the technology is, and why Sputnik V is not using it, the Russian vaccine funder's CEO said. The company is also conducting Phase 2/3 or Phase 3 trials in the U.S., Brazil, and South Africa.
    The Mulan outrage is causing all kinds of problems for Disney

    The Mulan outrage is causing all kinds of problems for Disney

    But it was theatrically released in China with a caveat. Check out what's clicking today in entertainment. The poster for the remake of " Mulan ".
    Dept. of Public Health Confirms Four New West Nile Cases

    Dept. of Public Health Confirms Four New West Nile Cases

    The local health department or city government may be able to add larvicide to the water, which will kill any mosquito larvae. Last year, 46 counties in IL reported a West Nile virus positive mosquito batch, bird, horse, and/or human case.
  • Air quality alerts extended for most of the province

    Air quality alerts extended for most of the province

    Vancouver now has a rating of 203 on the USA air quality index (AQI), not far behind Portland, which has an index level of 227. However, weather forecasts expect the province's air quality to plummet over the next 24 hours.
    Weather: This weekend, today is the day to go outside

    Weather: This weekend, today is the day to go outside

    A chance for light rain showers as early as late morning but the chances for rain grow through the afternoon and evening. Wind will be from the southeast as the high moves through and a weather system for Sunday approaches.
    Dame Diana Rigg, star of stage and screen, dies aged 82

    Dame Diana Rigg, star of stage and screen, dies aged 82

    In 1994, Dame Diana won the Tony Award for best actress for her titular role the stage production of Medea on Broadway. Born in 1938, Rigg spent several years of her childhood in India, where her father worked as a railway executive.
  • JPMorgan fires employees who took Covid relief funds

    JPMorgan fires employees who took Covid relief funds

    Officials said the total amount of fraud is unclear at this point, and more charges are expected over the coming months and years. The largest US bank by assets, JPMorgan Chase has issued nearly 300,000 loans totaling almost $30 billion under the PPP.
    Historic talks to begin between Taliban, Afghan government

    Historic talks to begin between Taliban, Afghan government

    The negotiations will endeavor to establish a framework for a peaceful postwar society after American troops return home. Historic peace talks between the Afghan government and the Taliban seeking to end 19 years of war have opened in Doha .
    Thiem, Zverev into US Open final

    Thiem, Zverev into US Open final

    It wasn't pretty, but Zverev is one match away from capturing his maiden Grand Slam crown. "I won't change my mindset at all". The 38-year-old takes on another mum in two-time Major victor Victoria Azarenka of Belarus for a place in tomorrow's final.


Most liked

Michael Bloomberg Donates $100 Million to Defeat Trump in Florida
Michael Bloomberg speaks by video feed during the 4th and final night of the 2020 Democratic National Convention. In the first moments of his 2016 campaign, he declared that many Mexican immigrants were "rapists".

Vaccine trials in United Kingdom to resume: AstraZeneca
The vaccine is likely to be made available if positive outcome is reached in the Phase III trials by early next year. Seven out of a total of 135 vaccines have managed to reach the third stage of clinical trials, she said.

India considers emergency authorisation of vaccine as Covid-19 cases surge
He said no date has been set for a vaccine launch, but added that results of trials should be clear by the first quarter of 2021. Maharashtra is the worst affected state in the country, accounting for more than 35 per cent of all deaths in India.

Tuscan Grand Prix crash-fest unkind to Kannapolis-based Haas F1 team
Bottas questioned the safety of the current procedures and rules that mean drivers can leave it so late before accelerating. In detailed analysis of the incident on the SkyPad, Anthony Davidson explained: "You have to wait for the guy in front".

Beijing to impose restrictions on all U.S. diplomats
President Donald Trump (R) and his Chinese counterpart Xi Jinping inspect the honor guard in Beijing on November 9, 2017. China will take reciprocal measures in response to USA actions".

Denise Richards Leaving 'Real Housewives Of Beverly Hills' After 2 Seasons
Ah, yes, the classic "Can I see your boobs, make out with you , and sleep with you strictly for surgical research?" trick. The actress had joined the Bravo reality series during season 9 and after two seasons is giving back her diamond.

Borderlands 3 Crossplay and Free Next Gen upgrade Announced
In this case, as the title indicates, that character is Krieg; the playable Psycho DLC Vault Hunter from Borderlands 2 . Tannis finally has the chance to find out the answer to our question by discovering the location of Valhalla.

Trump committed second-degree murder with handling of coronavirus — MSNBC analyst
He also added "I don't want to jump up and down and start screaming, "death, death", because that's not what it's about.". Dani Brzozowski, the Democratic nominee challenging U.S.

Springsteen on Broadway Star to Release New Album This Fall
Rolling Stone reported that Springsteen said in a statement, 'I love the emotional nature of Letter To You . Letter To You is Springsteen's first time performing with the E Street Band since The River 2016 tour.

USA sanctions Russian agent for 2020 election interference efforts, alleged IRA trolls
The action by the Treasury Department is the second time in as many months that the administration has called out Derkach by name. The restrictions have been introduced over his "efforts to influence the 2020 U.S. presidential election", the U.S.

Zomato raises Rs. 760 crore from Tiger Global: Details here
Despite the uncertainty in the current market, analysts said that these losses wouldn't impact Zomato's IPO aspirations. The IPO's location is not clear yet, whether it will have its launch in the USA or India .

Zoom Rolls Out Two-Factor Authentication Feature: How to Enable it
In order to enable Zoom 2FA on the account-level, admins must first sign-in to the Zoom Dashboard. You can easily enable Zoom's two-factor authentication by logging into the Zoom web portal .

Dak Prescott Speaks Openly About Battling Depression During Offseason
He did this on World Suicide Prevention Day , amplifying his normal level of absurdity to a stance that's risky and irresponsible. One of those burdens was being the main caregiver to their mother, Peggy, who died from colon cancer in 2013.

HarmonyOS: Available for HUAWEI smartphones in 2021
Huawei has announced the next iteration of its Harmony OS , as it seeks an alternative to the Android mobile operating system . Huawei overtook Samsung Electronics to become the world's biggest smartphone maker for the first time in the April-June period.

Despite shuttering of WE Charity's Canadian operations, political fallout continues
The federal ethics commissioner say the closure of WE Charity's Canadian operations will have no affect on his probe. The Toronto-based youth organization shared the news with its Canadian-based staff on September 9.