Nikola Motor Firm Badger pickup truckSupply: Nikola Motor FirmNikola shares tumbled greater than 10% on Friday after the electrical car firm dismis
Nikola Motor Firm Badger pickup truck
Supply: Nikola Motor Firm
Nikola shares tumbled greater than 10% on Friday after the electrical car firm dismissed fraud allegations made in a report by quick promoting agency Hindenburg Analysis.
Nikola mentioned it’s contemplating authorized choices, retaining Kirkland & Ellis, and that it plans to deliver paperwork to the Safety and Trade Fee to rebut the report.
The accusations come simply days after Common Motors mentioned it’s taking an 11% stake in Nikola and that it’ll produce its marquee hydrogen gasoline cell electrical pickup truck the Badger by the tip of 2022. GM shares had been up 0.9% in morning buying and selling.
“We’re absolutely assured within the worth we’ll create by working collectively,” GM mentioned in a press release. “We stand by the statements we made in saying the connection.”
Nikola shares are up greater than 200% thus far this yr.
Hindenburg accused Nikola’s founder, Trevor Milton, of creating false statements in regards to the firm’s know-how with the intention to develop and associate with prime automakers.
“To be clear, this was not a analysis report and it isn’t correct,” Nikola mentioned in a press release Friday. “This was successful job for brief sale revenue pushed by greed.”
Hindenburg mentioned it has proof together with telephone name recordings and textual content messages containing false statements and that the corporate staged a video displaying a truck that gave the impression to be purposeful. The analysis agency mentioned the truck was fairly “towed to the highest of a hill on a distant stretch of highway and easily filmed it rolling down the hill.”
The agency mentioned Nikola’s response did not deal with any of its greater than 50 questions “after promising a full rebuttal.”
“We’re happy that Nikola is participating with the SEC and we’re not stunned that Trevor Milton just isn’t commenting additional on recommendation of counsel,” it mentioned.
Learn Nikola’s full assertion right here:
“Yesterday, an activist short-seller whose motivation is to control the market and revenue from a manufactured decline in our inventory
worth printed a so-called “report” replete with deceptive info and salacious accusations directed at our founder and government chairman. To be clear, this was not a analysis report and it isn’t correct. This was successful job for brief sale revenue
pushed by greed.
We’ve nothing to cover and we’ll refute these allegations. They’ve already taken up extra time and a spotlight than they deserve. We
have retained main legislation agency Kirkland & Ellis LLP to guage potential authorized recourse, together with with respect to the activist quick vendor and any others appearing in live performance.
Nikola additionally intends to deliver the actions of the activist short-seller, along with proof and documentation, to the eye of the
U.S. Securities and Trade Fee
We respect the rights of buyers and the integrity of the market and might be again to you after we have now superior the method with the
SEC.
Most significantly, Nikola stays targeted on delivering on the guarantees we have made to our stakeholders.”