Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Short seller rejects Nikola’s explanation as ‘tacit recording of securities fraud’

Short seller rejects Nikola’s explanation as ‘tacit recording of securities fraud’



NKLA) spun a “sea of ​​lies” and called the electric car’s start-up reaction to the accusations a “tacit recording of securities fraud.” “data-reactid =” 16 “> Short seller Hindenburg Research has doubled on allegations made last week that Nikola Motor Company (NKLA) turned a”

; sea of ​​lies “and called the electric car’s start-up response to the accusations a” tacit admission of securities fraud. “

announcement published on Tuesday, Hindenburg rejected Nikola’s response to the allegations, saying they failed to remove doubts about a misleading video it made it seem as if its semi-truck Nikola One was driving under its own power at a high speed. “data-reactid =” 17 “> In a statement released Tuesday, Hindenburg rejected Nikolas’ response to the allegations, saying they failed to dispel any misleading video that made it appear as its semi-truck Nikola One drove under its own power at a high speed.

Hindenburg Research Twitter post September 15, 2020

The short seller further criticized the company for claiming to have answered only 10 out of 53 questions that it said the company should answer for the sake of shareholders.

“In Monday’s response, the company acknowledged that its vehicle was not operating under its own power, and instead it apparently simply showed gravity,” Hindenburg wrote.

‘Beyond common sense’

The company’s explanation that the truck in the video was only as “in motion,” Hindenburg wrote, is “beyond common sense.” The short seller pointed to additional representations from Nikola in the description of the video that its Nikola One semi-truck had 1,000 horsepower and no emissions.

“Of course, the truck can not have 1,000 horsepower or even 1 horsepower if it does not drive itself,” Hindenburg wrote. Hindenburg also quoted the company’s confirmed Facebook account response to communications that the Nikola One had “over 1,000 HP” and “over 2,000 ft. Lbs. Of torque” and can handle a “7% quality, no problem”.

CEO and founder of the US Nikola, Trevor Milton speaks during the presentation of his new fully electric and hydrogen fuel cell batteries in collaboration with CNH Industrial at an event in Turin, Italy on December 2, 2019. REUTERS / Massimo Pinca

announcement after Hindenburg’s initial report that truck included in the video titled “Nikola One Electric Semi Truck in Motion” did not drive on its own power and instead rolled down a hill. “data-reactid =” 60 “>” Nikola never said that her truck drove during its own propulsion in the video, even though the truck was designed for just that, “the Phoenix-based company admitted in a statement after Hindenburg’s first report that the truck in the video titled “Nikola One Electric Semi Truck in Motion” did not drive on its own power, and instead rolled down a hill.

video that it says shows its next generation model “Two” semi-truck driving on its own power. “data-reactid =” 61 “> In his response, Nikola referred to a recent video from 2019, which it says shows its next generation model” Two “semi truck driving on its own power.

In its statement released on Monday, Nikola also said that investors who invested in the period of the Nikola One video released in 2017 before the company was released knew Nikola One’s technical capacity at the time of their investment.

However, the spokesman left unclear whether all investors were made aware of Nikola about the technical possibilities of Nikola One at the time of the Nikola One In Motion video.

Asked whether all of Nikola’s investors were made aware of the technical capacity at the time, a Nikola spokesman focused on his early partner, Bosch, in an email to Yahoo Finance, saying that Bosch was Nikola’s most important partner at the time. and that the company was a board member, investor and partner in Nikola’s technology.

“All our investors were aware of the development and progress with Nikola Two, and how the experience from [Nikola] It made it happen, ”the spokesman said.

“At the time, technical capability was an incredibly successful proof of the concept with the Nikola One,” the spokesman said. “We turned from it to Nikola Two, but everything we learned from Nikola One has supported the successful development of the next Gen trucks. Bosch knows all the details of our trucks and continues today as our partner in our truck development. ”

Yahoo Finance reached out to Nikola to request answers to Hindenburg’s latest allegations and was assured that the company would provide an answer.

Based on the initial claims from Hindenburg, Nikola said the company’s legal counsel contacted and briefed the U.S. Securities and Exchange Commission (SEC) and intends to cooperate fully with the SEC regarding its investigation of the cases.

“Nikola welcomes the SEC’s involvement in this case,” the company said.

According to Bloomberg, the SEC has opened an official investigation into the case.

@alexiskweed.“data-reactid =” 76 “>Follow Alexis Keenan on Twitter @alexiskweed.




Source link