Nicolas Motor came under fire after an analytical firm called Hindenburg Research described the carmaker as “a complex scam built on dozens of lies.”
Hindenberg said he had “gathered extensive evidence – including recorded phone calls, text messages, personal emails and behind-the-scenes photos detailing dozens of false statements by Nicola’s founder Trevor Milton.”
Nicholas is developing his series of hydrogen fuel cells and battery electric semi-trucks and pickups in preparation for a production boost over the next few years.
New from us: Nicholas ̵1; how to collect an ocean of lies in partnership with the largest car manufacturer in America http: //t.co/GHf6kvUgo0 $ NKLA
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– Hindenburg Research (@HindenburgRes) September 10, 2020
Yesterday, GM received a significant $ 2 billion stake in Nicola and announced that it would be responsible for developing and supplying fuel cells and battery systems for the company, led by Trevor Milton.
However, the Hindenburg report claims that a huge level of fraud is taking place as part of Nicholas’ campaign to gain momentum in the transport sector.
“We have never seen this level of fraud in a public company, especially on such a scale,” Hindenburg said.
Nicholas Shares fell 9% due to the news, according to MarketWatchand its public estimate of $ 20 billion fell to $ 14.24 billion in a matter of hours.
The report claims that Milton “managed to turn these false claims, made over a decade, into a public company worth ~ 20 billion dollars. He has partnered with some of the best car companies in the world, all desperate to catch up with Tesla and harness the EV wave. “
One of the biggest allegations in the Hindenburg report is the assumption that Milton’s statements during the July 2020 podcast directly show that Nikola Tre has launched production lines at a plant in Europe.
“We have five of them coming off the assembly line right now in Ulm, Germany,” Milton said during the podcast. Bosch, the manufacturing partner that builds the trucks, confirmed that there were no fully manufactured Nikola products.
In response to the report, Milton tweeted that it would take him “several hours to gather answers to their [Hindenburg’s] lies. “
It makes sense. Tens of millions of shares were cut in the last day or two to drive our shares and find work from Hindenburg. I guess it’s all fair play in the war, even hit work. I know who is financing it now. Give me a few hours to gather the answers to their lies. Is that all you have?
– Trevor Milton (@nikolatrevor) September 10, 2020
Hindenburg holds a short position in shares of Nikola Motor and has written a disclosure at the bottom of the report, indicating its current position in the company’s shares.
The report has not yet been confirmed, but Block & Leviton LLP, a national securities and litigation firm, is currently investigating the lawsuits. The company said, “If you have purchased or acquired shares of Nicholas and have questions about your legal rights or have information related to this matter, please contact Block & Leviton at (617) 398-5600, by email at [email protected]or at https://www.blockleviton.com/cases/nkla. “
Disclosure: Joey Klender is not a shareholder in $ NKLA and does not intend to initiate positions within 72 hours.