The report claims that Nikola had the truck towed to the top of a hill on a remote stretch of road and simply filmed it rolling down the hill. - Screen grab from YouTube.

The report claims that Nikola had the truck towed to the highest of a hill on a distant stretch of street and easily filmed it rolling down the hill.

Display seize from YouTube.

Nikola Company issued a press release at this time in response to claims made about Nikola by Hindenburg Analysis, which has a brief place on Nikola’s inventory:

“Yesterday, an activist short-seller whose motivation is to govern the market and revenue from a manufactured decline in our inventory value revealed a so-called ‘report’ replete with deceptive data and salacious accusations directed at our founder and govt 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 now have nothing to cover and we are going to refute these allegations,” the assertion reads. “They’ve already taken up extra time and a spotlight than they deserve.”

Nikola says it has retained a regulation agency to guage potential authorized recourse and intends to deliver the actions of Hindenburg to the eye of the U.S. Securities and Change Fee.  

The Hindenburg Research report makes a collection of claims towards Nikola, the hydrogen gas cell and electrical automaker. The report was launched as Nikola introduced a partnership with General Motors to provide the Badger zero-emissions pickup.

Amongst many allegations, the report claims that Nikola staged a video referred to as “Nikola One in Motion” which confirmed the semi-truck cruising on a street at a excessive price of pace. Hindenburg’s analysis claims the video “was an elaborate ruse,” that Nikola had the truck towed to the highest of a hill on a distant stretch of street and filmed it rolling down the hill. (Nikola mentioned the truck was “in movement,” which is technically true.)

The report additionally claims that in an October 2019 announcement that Nikola promised to “revolutionize the battery business” by way of a pending acquisition, although the deal fell by way of and that Trevor Milton, founder and chairman of Nikola, by no means walked again the claims even with data that the expertise was “vaporware.”

Concerning the GM deal, the Hindenburg report says that “Nikola seeks to make use of the automaker’s manufacturing and gas cell capabilities. Nikola appears to be bringing nothing to the partnership however idea designs, their model title and as much as $700 million they are going to be paying GM for prices associated to manufacturing.”

On Twitter, Milton mentioned he’s “engaged on rebuttal of Hindenburg for 14 hours” however later mentioned he “wouldn’t remark additional on recommendation of counsel” and “should wait to be till the SEC finishes their work.”

Nikola’s shares are down greater than 10% in Friday’s buying and selling on the information.

Initially posted on Fleet Forward