As announced, the US startup Nikola, which, like Tesla, wants to produce electric trucks and pickups but also with fuel cell drives, has responded with a statement to massive allegations by a stock exchange company specializing in short sales. The study published last week by Hindenburg Research caused a massive drop in the price of the share, which had risen significantly shortly before because Nikola had announced a far-reaching cooperation with General Motors. This Monday’s resistance brought Nikola back double-digit profits on the stock exchange – but it was subsequently announced that the SEC is dealing with the case.
Tesla fans particularly critical of Nikola
Because Nikola founder Trevor Milton presents himself publicly as a kind of second Elon Musk, unlike him but has so far not had much to show concrete and, for example, has blasphemed about the appearance of the Cybertruck, he is under closer observation by some Tesla fans on Twitter. Even before the Hindenburg study, they had pointed out inconsistencies in Nikola several times and therefore reacted happily to the allegations it had collected – although many of them are otherwise very critical of short sellers, some of whom are still trying to make money with falling prices at Tesla to earn.
Probably the most serious allegation in the study by Hindenburg Research is that a video of a moving Nikola truck from 2018 was basically a fake: The vehicle was shown on the road on the road – but according to the Short analysts it did not have its own Drive, but simply rolled down a mountain it had been towed up previously. Nikola had an explanation in his reaction that was widely and especially among observers from the Tesla camp taken as a confession: In fact, the Nikola One did not drive on its own, but that was not said at all, but about the video just written that it shows the e-truck “in motion”.
SEC Examining #Nikola Over Short Seller’s Fraud Allegations https://t.co/PWIoY8oyS1
– Victor “DeFi Toronto” Li (@CryptoEcon_Li) September 15, 2020
This justification and others were taken apart by Tesla fans on Twitter and others, but investors were initially less critical: On the stock exchange, Nikola shares gained a good 11 percent to $ 35.79 on the Monday after publication. But then the news agency Bloomberg reported that the US Securities and Exchange Commission was also dealing with the case. After the trading hours, the Nikola share gave up almost all of its plus from regular trading.
SEC is supposed to be investigating the Nikola case
Tesla boss Musk has also had problems with the SEC because of an unfounded announcement of a possible withdrawal from the stock market, which resulted in a million dollar fine and Twitter restrictions for him. According to Bloomberg, Nikola is now about a possible targeted investor deception. The authority is still in a preliminary examination of the case, so have not yet initiated any formal proceedings against Nikola or founder Milton, who is portrayed as particularly dishonest in the Hindenburg study.