Nicola understood what it demanded and it could backfire badly


What did Nicola get to ask for an illustration of the article and it could turn out badly? Can backfire

The image: Nicola Corp

morning shiftAll your daily car news in one convenient place. Isn’t your time more important?

The SEC is actually investigating the claims of that short seller NikolaReportedly now misleading the tech demo, Carlos Ghosn’s trial in Japan has begun without him, and police traffic in Minneapolis are at an all-time low. All of that and more morning shift Tuesday for September 15, 2020.

1st gear: If I had a Nikola for EV startup every time, the SEC would have noticed …

Now that electric truck startup Nikola has a ton of money and a genuine relationship with General Motors as a manufacturing partner, critics are now looking to see how the startup got it, and a small vendor has claimed The company worked hard to confuse potential investors.

Last Friday, Nicola founder and executive chairman Trevor Milton Claimed that he was taking the issue to the US Securities and Exchange Commission (SEC) directly to set the record. A new report states that the SEC has become very interested in whether Nicola has committed crimes, which is probably not good.

From Bloomberg:

Tussell has prompted the SEC to investigate Hindenburg’s claims to find that Nicola may have violated securities laws, adding that people whose names have not been asked because the investigation is not public. The regulatory review is preliminary and cannot lead to allegations of wrongdoing.

Shares fell as much as 11.7% in Monday trading, erasing gains before the market closed.

Nicola encouraged the SEC to join. As its stock plunged after the short-seller report was released last week, the Phoenix-based company said it had reached out to the SEC to discuss its issues with the Hindenburg Report, and eventually agency officials on the morning of the sept Made a call with. 11. Nicola says Hindenburg is trying to profit from a “built-in drop” in its share price.

Prior to Short’s report, Nicola was given more prominence than Ford Motor Company after the announcement of its GM deal. That is it, at least for now. So far this is just a preliminary investigation, but maybe everyone involved stops tweeting about it for a while.

Nicola gave us the following statement:

On September 11, Nicola’s legal counsel continually contacted and informed the US Securities and Exchange Commission (SEC) about Nicola’s concerns concerning the Hindenburg Report. Nikola welcomes the SEC’s involvement in this matter.

Second gear: Nissan slapping wrist

It was the first day in court for ex-Nissan executive Greg Kelly, who is on trial with the automaker he worked for and his former boss Carlos Ghosn. Ghosn was not there as he fled a Japanese home in Lebanon after being accused of financial misconduct and was removed from his post.

Greg Kelly’s defense, basically, is that Ghosn was a good guy and a talented executive, and Nissan struggled to find ways to keep him with legal means of compensation. However, Kelly claims that at least Kelly is innocent in all of this. From Automotive news:

Prosecutors cited a 2011 document stating that Nissan would have to pay compensation to Mr. Ghosn, as much as he was officially paid, calling it “deferred compensation”.

The prosecutor said the fines that were made in different ways to compensate Ghosn continued until the arrest of Ghosn and Kelly in November 2018. Prosecutors displayed evidence and images of documents that outlined Ghosan’s salary structure on a large wall-mounted video screen.

Kelly’s lawyer argued that Nissan’s money was invested for the Ghosan, which was not part of the plan to provide deferred compensation. The defense had previously argued that it was a legal draft of a post-retirement contract intended to place Ghosn as an advisor to the Japanese carmaker and prevent him from bumping into a competitor.

Kelly’s lawyer said the compensation amount was never fixed, an agreement was never finalized, and nothing was ever paid.

Thus, the defense argued, there was no need to disclose it in the financial report.

The Japanese legal system has a notoriously high conviction rate, so Ghosn had a strong desire to tie hell to his throat before exiting Nissan City. The automaker itself has already submitted the Japanese government’s allegations and will not contest the charges against it in court.

If convicted of involvement, Kelly could serve a sentence of up to 10 years in a Japanese prison.

Third gear: performance functions

After sad The murder of George Floyd Following the May 29 global demonstrations by police officers in Minneapolis and against police vandalism and systemic racism, the police department has withdrawn its actions, Bloomberg Report:

According to an analysis by Bloomberg CityLab, the department has been making an average of 80% fewer traffic stops every week since May 25, the day of Floyd’s death.

In Minneapolis, two other major categories of police stayed even after Floyd’s death, although traffic is not to the same degree as law enforcement, which typically includes crimes such as moving or equipment violations.

Stops for “suspicious vehicles”, meaning the pursuit of vehicles involved in a crime, dropped 24%. “Suspicious person” stops, people outside the context of the vehicle “which does not contain a person, appears out of place, or whose actions are suspicious,” were down 39% from May 25. The interactions of a specific police department are not counteracted in response to public violent issues, but are halted during such routines.

Bloomberg claims that it could be a mix of factors leading to the drop, including keeping Kovid-19 epidemic activity low, police officers’ reports of high volume job losses, or a reaction against the very public and necessary response Includes a common pullback attempt. Minneapolis Police. Never mind, it is clearing a way for already unarmed and better trained officers and services.

Fourth gear: Diesler paid for dieselgate, yet declined liability

Despite paying a $ 2.2 billion penalty for the Dieselgate engine emissions-fraud scheme, Daimler Who still denied any liability Of course, But it’s fun to point out. From Reuters:

Daimler said in August it was expected that settlements with US officials would cost a total of $ 1.5 billion, settling with owners would cost another $ 700 million, and also revealed that “meeting the requirements of settlements The amount of the middle three-digit million euro (euro) will be spent. .

Deputy Attorney General Jeff Rosen said the settlements, which follow a nearly five-year investigation, “may serve to prevent any other person for violating our country’s pollution laws in the future.”

In court documents, Daimler agreed to pay 250,000 owners for $ 3,290 each for repairs to polluting vehicles, and objected to the owners ‘lawyers not paying $ 83.4 million in attorneys’ fees and expenses. Owners will receive $ 800 less if the owner files a valid claim.

I might like to think of Deputy Attorney General Jeff Rosen as “any other person enticed to violate our nation’s pollution laws in the future” by focusing his attention on the entire Republican Party and the businesses of the American economy. Keep up the hard talk and look inward, but I’m sure he won’t.

(Correction Note: A previous version of this section claimed that Volkswagen and Daimler are related companies when they are truly competitive. It was foolish.)

5th gear: railway is fucking

last week, Wall Street Journal The major US railway company Kansas City Southern is reported to have turned down a whopping $ 23 billion offer during a global pandemic because rail companies apparently make a lot of money over the long term. Which makes them very expensive.

today, Bloomberg There is a breakdown on why the Kansas City Southern might feel relaxed for the global economy to lose so much money in such uncertain times:

Southern investors in Kansas City feel the suitors are unlikely to run. Raymond James Financial Inc. Analyst Patrick Tyler Brown raised his price target on the company to $ 210, but not due to takeover talk, which he considered “noisy”. Instead he cited efficiency gains and prospects for Kansas City Southern’s rail trade between the US and Mexico as manufacturers seek to localize supply chains.

In early September, daily volume was back to pre-epidemic levels thanks to a rebound in cross-border traffic and energy-related shipments, Kansas City Southern Chief Financial Officer Mike Upchurch said in a presentation on September . 9. The company is restoring its goal of lowering its operating ratio — a measure of profitability this year for which a lower number is better — compared to an adjusted metric of 60% to 61% this year, 63.2% in 2019. In.

When Warren Buffett bought Burlington Northern Santa Fe for $ 36 billion, he gave it “an opportunity to buy a business that’s going to live for 100 or 200 years.” I wonder if he knows what is going to happen to him before that time, or if he has a budget for it, too.

Reverse: 160 years later it’s about to lose it

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