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Nikola Corp. has worked for him through a partnership with General Motors Co. to build his Badger pickup, according to new allegations from shorts dealer Hindenburg Research.
“We Nikola is a complex fraud built on dozens of lies during the career of its founder and ceo Trevor Milton,” Hindenburg wrote in a report published Thursday, which mentioned phone calls, text messages, emails and photographs.
Start-ups like Nikola, which rejected Hindenburg’s claims, are more vulnerable to short-lived traffickers because they don’t have a lot of experience where investors can make judgments.
The sharp increase in the company’s shares following the announcement of the agreement with GM would possibly have exacerbated this, expanding the potential gains of falling stocks.
“We have never noticed this point of deception in a public company, of this size,” Hindenburg argued.
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Short traders post negative statements about a company to decrease the value of their inventory and increase their own profits. Hindenburg said he took a brief stance on Nikola after conducting a “thorough investigation. “
Shares of Phoenix-based electric truck manufacturer fell 13% after the report was released, before reducing its losses.
Milton, Nikola’s founder, called the report a “successful job” and said he did so to “hit” the company’s shares, which had noticed that its market capitalization rose to $16 billion at Wednesday’s close from $340. 86 million on June 3, the day of its Nasdaq. Debut.
“Nikola has been approved through some of the world’s most credible corporations and investors,” a corporate spokesman said in a statement. »
Hindenburg, for his part, attributes Nikola’s growing market to Milton’s deceptive partners on the company’s patented technology.
Nikola announced last year that he would revolutionize the industry with an acquisition that would produce a mobile battery in less than a portion of the weight and charge of lithium-ion batteries used through competition.
The deal failed after Nikola learned that the generation remained a concept and after discovering that the company’s president had been charged with his NASA spending account to rent prostitutes, according to Hindenburg.
Nikola never repeated his claims and Milton continued to promote the technology, Hindenburg said. Milton has made many other claims about his technologies that Hindenburg claims to be false.
From now on, Nikola will use General Motors’ battery generation from Tuesday’s deal. Under the deal, GM will get $ 2 billion in newly issued stock, or an 11% stake, to help build batteries and power mobile electric models for Nikola’s Badger. Van.
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“We’re completely confident in what we’ll create by running together,” a GM spokesman said in a statement. “We resisted the statements we made in pronouncing the relationship. “
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