- Nittola followed Citron Research on Friday with shares as high as 18%, with the automaker following Hindenburg Research on charges of fraudulent activity.
- This slide exacerbates the losses that began after Hindenburg published a report “overflowing” its products and filling the order book with “fluff”. Nicola’s stock fell 11% in Thursday trading.
- Citron congratulated Hindenburg on Friday Tweet “To uncover what appears to be a total fraud with the NKLA.”
- Investors rebuffed the automaker’s rebuttal. CEO Trevor Milton called the allegations “Wrong and misleading, “And a company press release considered Hindenburg’s report to be” a hit job for short sales profits “.
- Look Nicola business live here.
Nicola tumbled 18% on Friday as investors continued to flee after a short-seller report was released.
Hindenburg Research detailed the damage done on Thursday after an allegation by the electric vehicle company and its CEO Trevor Milton of overheating their truck’s capabilities. A small position firm in Nicola also accused Nicola of filling its multibillion-dollar order book “with fluff”.
Citron Research backed the claims on Friday morning and congratulated Hindenburg Tweet “To uncover what appears to be a total fraud with the NKLA.”
Read more: Credit Suisse says buy these 30 stocks, which offer the best deals for strong sales and earnings growth in a strong market
Milton retaliated on the charges on Friday, accusing Hindenburg Tweet Want “maximum loss” with “false and fraudulent” statements.
Nicola said in a press release that Hindenburg’s motivation was “to manipulate the market and profit from the manufactured decline in our stock price.” Nicola excluded attorney Kirkland & Ellis for possible legal reconsideration and authorized him to work with the Securities and Exchange Commission in rebooting the report.
“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,” the company said.
Citron promised to cover half of Hindenburg’s legal costs associated with the potential lawsuit.
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
Friday’s recession brings the shares to their lowest point since the beginning of August. Thursday’s selling was down 11.3% during the session.
Hindenburg’s report and subsequent reactions come days after General Motors struck a deal with Nicola. The partnership, which includes GM, which holds an 11% stake in the small firm, promoted Nicola shares earlier in the week.
Hindenburg said in its report that it is suspected that Tesla’s growth in the electric vehicle sector pressured GM to invest. The research firm said that many of Nicola’s partners and investors have been “aggressively cashing out” through the year, as its shares grow on strong investor demand.
Nicola traded $ 31.92 as of 10:45 am Friday.
Now read more market coverage from Markets Insider and Business Insider:
The $ 1.3 billion fund manager explains how investors can limit their losses during a stock market selloff with bonds – and shares 6 sectors where they get the best opportunities right now
The report says that the hedge fund of billionaire investor Michael Hintze is down 43% this year after a mild August surge.
US Consumer Comfort Gauge Takes Biggest Leap as Reopening of Charges Since 2009