Following the short seller’s report, Nikola said that there was a 13% drop in years of deception and false statements by CEOs

Trevor Milton, founder and executive chairman of Nicola.

  • Following a short-seller report by Hindenburg Research, Nicola said Thursday that the company and its CEO, Trevor Milton, have made false statements about their technical capabilities.
  • The Hindenburg report came two days after General Motors announced a $ 2 billion partnership with the electric-vehicle manufacturer, sending Nikola shares up nearly 50%.
  • Hindenburg Nicola had fewer shares when the report was published.
  • Milton tweeted in response to the report: “I think everything in war is fair play, even a hit job. I know who has accepted it? I need to react to their lies Take a few hours. You got it all? “
  • For more stories visit the Business Insider homepage.

The 53% surge that Nicola experienced on Tuesday in response to its $ 2 billion partnership with General Motors appears to be a short-term report, as a short-seller report dropped shares to 13% on Thursday. gave.

In the report, Hindenburg Research, which shares the electric-vehicle manufacturer’s low, said it found “extensive evidence” – including recorded phone calls, text messages and private emails – that CEO Trevor Milton had “dozens False statements “. over the past few years.

Hindenburg alleged that Nikola engaged in a number of deceptive practices, ranging from overheating the capabilities of his electric semitrack to filling his multibillion-dollar order book “with fluff” that convinced the short-seller that its Partners “don’t do their homework.”

Read more: Buy these 16 tech stocks that have recovered from the epidemic and are now poised for explosive growth in the coming months, says Stiffer

Hindenburg was likely to refer to his partnership with General Motors and Nicola. General Motors said on Tuesday that it would provide engineering and manufacturing services for the construction of Nikola’s Badger electric pickup truck, acquiring an 11% stake in Nicola for $ 2 billion.

Hindenburg said it is suspected that Tesla’s tireless rally led to a deal with Nicola on General Motors to increase exposure for the electric-vehicle space.

According to the report, Nikola stock remains elevated after a public merger earlier this year with a special-purpose-takeover company.

Hindenburg said, “All the shares of Worthington, Bosch and Valact have been sold. Worthington made $ 237 million worth of shares at 2-day intervals in July and another $ 250 million in August.”

Read more: Well-known strategist Tom Lee described the market as a rebound from its worst crash. He faces 9 rapid forces for the shares after this week’s ‘overdue’ sale closes, and shares his best cash strategy.

In response to the short-seller report, Milton Tweeted On Thursday: “It makes sense. Millions of shares shortened the previous day or two hit our stock and hit a job by Hindenburg. I think everything is fair game in war, even a hit job.” Is. I know who financed it now. Give me a few hours to react to their lies. That’s all you got? “

Nicola’s shares fell as much as 13% to $ 37.05, while General Motors shares fell as much as 2%. Nicola has also traded more than 5% since announcing a partnership with General Motors on Tuesday.

Read more: Morgan Stanley says the stock market’s future is ‘unusually dependent’ on another stimulus package – and recommends 5 portfolio moves to Congress to undergo another round

nkla 123.JPG