UPDATE: Short seller Hindenburg alleges electric truck maker Nikola is ‘complex fraud’ in new report


Short seller Hindenburg Research published a report on electric truck manufacturer Nikola Inc. NKLA,
-8.54%
On Thursday, accusing it of being a “complicated fraud” over a lie told by its founder and executive chairman Trevor Milton for years. Nicola’s shares fell 9% on the news. “We have collected extensive evidence-recorded phone calls, text messages, private emails and behind-the-scenes records of dozens of false statements from Nicola founder Trevor Milton,” the report said. “We have never seen this level of deception in a public company, especially this size.” Nikola has misled partners by making false claims about the company’s technology, including its hydrogen fuel cell batteries, which Hindenburg says never existed. The company now plans to use General Motors Co.’s battery technology after signing an agreement with GM this week, under which it will issue $ 2 billion worth of new shares to GM. “Nicola has been vetoed by some of the world’s most trusted companies and investors,” a spokesperson said in email comments. “We are on the road to success and will not forgive based on reports full of misleading information trying to manipulate our stock.”

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