Brief-seller Hindenburg says no clear solutions in Nikola rebuttal, Auto Information, Automobilnews
Shares of Nikola Corp sank 7% on Tuesday after the short-selling analysis home, which has alleged the electrical truck maker misled traders over its expertise, stated the corporate had failed to deal with most of its queries.Nikola has rejected the accusations and threatened to take authorized motion in opposition to short-seller Hindenburg since its analysis into the corporate sparked the primary of a sequence of falls within the firm’s shares final week.
Nikola didn’t instantly reply to a request for remark.
“Nikola’s response has holes sufficiently big to roll a truck by way of,” the quick vendor stated in a brand new report on Tuesday.Hindenburg took a stab at Nikola and its founder Trevor Milton’s use of phrases like “useful” and “absolutely constructed” for the Nikola One truck, which the corporate claimed had 1,000 horsepower again in 2016.
“Clearly, the truck cannot have 1,000 horsepower and even 1 horsepower if it would not energy itself,” Hindenburg stated within the new report.
Hindenburg had earlier alleged that the seemingly useful truck, Nikola One, was “merely filmed rolling down an enormous hill” in 2017, a declare Nikola disputed by saying it had by no means acknowledged that the truck was driving “underneath its personal propulsion”.
“We view the corporate’s new admission that the Nikola One was not powered by itself within the video as a tacit admission of securities fraud”, the report added.
Bloomberg Information reported late on Monday that the U.S. Securities and Trade Fee (SEC) was probing Nikola to evaluate the deserves of Hindenburg’s claims that it had misled traders about its enterprise prospects.