Things are not in good shape for Nikola Corporation now as they are tagged as “Fraud” by short-sellers. The company was rewarded with a 2$ billion investment by GM last Tuesday. Hindenburg Research revealed on Friday that Nikola Corporation along with its CEO, Trevor Milton of over-hyping their truck’s capabilities. They have also accused Nikola of making false promises and fraud.
Trevor Milton tweeted: “It makes sense. Tens of millions of shares shorted the last day or two to slam our stock and hit job by Hindenburg. I guess everything is fair game in war, even a hit job. I know who funded it now. Give me a few hours to put together responses to their lies. This is all you got?”
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On Monday, another short-seller Citron Research backs Hindenburg’s for their allegations over the EV truck company. Citron tweeted: “Congrats to Hindenburg for exposing what appears to be a total fraud with $NKLA. Citron will cover half of all legal expenses. You can’t SLAPP the truth away. Explains why Milton sold at $10 this June $NKLA response warrants an SEC investigation to maintain the integrity of the EV market.”
Nikola also explained to the Securities and Exchange Commission with documentation that it has initiated legal options. They also stated that full cooperation with the SEC is given on further investigation. It is a bit of surprise that GM has not given out any statement in relation to this matter.
Though it a huge backdrop for Nikola, they could still manage to move up in the market especially with GM’s partnership. Only time has to reveal things as if Nikola Corporation can escape the scare and release its commercial trucks on time.
