Milton posted a statement on his official Twitter account on 11 September, hinting that the company had reached out to a law firm and was planning to defend itself with lawyers. The chairman also said that the report was “a hit job for short sales profits driven by greed” in a statement.
“Nicola retained counsel outside of Kirkland & Ellis LLP and authorized them to direct him to the SEC. The allegations are false and misleading, ”Milton tweeted. “However, on the advice of the lawyer, I will comment no more than to say that we have included the SEC. It is up to them and I have to let them run their process. I want you to see that I have taken each point How is addressed, but it will have to wait until the SEC finishes its work. Let’s be clear, Nicola approached the SEC and not the other way. The writer wanted emotion and we wouldn’t let them. ”
They have to let their process run. I want you to see how I have addressed each point, but it will have to wait until the SEC finishes its work. Let’s be clear, Nicola approached the SEC and not the other way around. The writer wanted emotion and we will not give them
– Trevor Milton (@nikolatrevor) September 11, 2020
Hindenburg released a report around 8 am on September 10, titled “Nicola-How to Parleys a Ocean of Lies into a Partnership in the Largest Auto OEM”, claiming the company was fraudulent in its statements Was getting it done. The report’s title is indicative of the company’s recently agreed partnership with General Motors, which has decided to take charge of fuel cell and battery development for Nikola’s vehicles.
The research group also said that it had “gathered extensive evidence – including recorded phone calls, text messages, private emails and descriptions of dozens of false statements by Nicola founder Trevor Milton.” It also included the claim that Nicola had units of rolling “trays” of production lines in Ulm, Germany. Bosch, the company responsible for the production, said no vehicles were built.
Also, a road test of the Nikola vehicle was claimed to be misleading, according to the report. Hindenburg claims the truck was towed and headed down a low-grade hill, allowing the vehicle to operate.
Nicola’s full statement is available below:
“Yesterday, an activist short-seller whose motivation is to manipulate the market and profit from the manufactured drop in our stock price has published a so-called” report “full of misleading information and derogatory allegations directed at our founder and executive chairman. To be clear, this was not a research report and is not accurate. It was a hit work for short sales profits driven by greed.
We have nothing to hide and we will refute these allegations. They have already invested much time and attention to which they are entitled. We have retained the leading law firm Kirkland & Ellis LLP to evaluate potential legal recourse with respect to the Activist Short Seller and any other person acting in concert.
Nicola intends to bring evidence and documentation as well as the actions of activist short-sellers to the attention of the US Securities and Exchange Commission.
We respect the rights of investors and the integrity of the market and we will return to you after furthering the process with the SEC.
Most importantly, Nicola has focused on fulfilling the promises made to its stakeholders. “