NKLAThe stock price rose 40%, and more shots were fired on the troubled electric truck startup on Tuesday. Nikola declined to participate in the report of a possible US Securities and Exchange Commission (SEC) investigation. “Data-reactid =” 19 “> Hindenburg Research, a short seller who successfully sold short Nicolas (Nasdaq: NKLA) shares rose 40% and fired more shots on the troubled electric truck startup on Tuesday. Nikolai refused to participate in a possible Securities and Exchange Commission (SEC) investigation report.
Crisis Communications Company Joele Frank, Refused to answer about Hindenburg’s second attack Or a Bloomberg report cited unnamed sources The SEC is investigating Nikola. “Data-reactid = “20”> Nikola hired crisis communications company Joele Frank (Joele Frank), but he refused to answer questions about Hindenburg’s re-launched attack or Bloomberg’s report. An anonymous person was quoted as saying that the US Securities Exchange The committee is investigating Nikolai.
Spokesperson Christopher Carofine wrote in an email to FreightWaves on Tuesday that the SEC declined to comment.
67 page Hindenburg report Published for accusing Nicholas of years of lies and deception. Nikola’s second statement on Monday night said that it welcomes the SEC’s intervention. “Data-reactid =” 22″> On Monday, Nikola hinted at the SEC’s inquiry. It said that it had contacted the agency on Friday. This was the second day that Hindenburg had 67 pages. The second statement issued on Monday stated that it welcomes the SEC’s intervention.
Nikolai is like that. On Tuesday, it issued a brief statement.
Nicholas said: “We will not comment on rumors or speculation.” “When we have something to disclose, we will.”
The founder also became quiet
Nikola operates in a crisis mode and quiets the social media accounts of founder and executive chairman Trevor Milton. He responded positively and sometimes profanity to critics and short sellers on Twitter. In his latest tweet on Monday, he said that Nicholas’ response to Hindenburg “has been out and we are focusing on delivery.”
TSLA), the company has become the most valuable car manufacturer in the world by virtue of its stock price rise. “Data-reactid=”31″> One of the challenges that Nicholas faced was that even before Hindenburg’s accusations, there was at least a year left before the electric trucks were on the road. They generated considerable income. This led to critics. Negative posts, many of them fans Tesla Company (NASDAQ: TSLA), with this year’s stock appreciation, it has become the world’s most valuable car manufacturer.
The 19th century inventor Nikola Tesla (Nikola Tesla). Nikola became a public company in JuneReverse merger with VectoIQ, a special purpose acquisition company.“Data-reactid =” 32″> Nikola and Tesla named their company after the 19th century inventor Nikola Tesla’s name and surname. Nikola is working against the special purpose acquisition company VectoIQ After the merger, it became a listed company in June.
Nikola’s business plan calls for a joint venture with IVECO, a subsidiary of CNH Industrial NV (NYSE: CNHI), to produce a battery-electric Nikola Tre convertible by the end of 2021. The industrial conglomerate invested $0 million in Nikola in September 2019, including the use of the Iveco plant in Ulm, Germany.
RSG) A record order for 2,500 Tre models was placed in August, which will be configured as garbage trucks. Nikola plans to produce hydrogen-powered Class 8 trucks in Arizona from 2023. “Data-reactid=”34″> German-made trucks will also be exported in the form of kits and assembled at the Nicholas plant under construction in Coolidge, Arizona.Public Service New York Stock Exchange: RSG) set a record order for 2,500 Tre models in August, which will be configured as garbage trucks. Nikola plans to produce hydrogen-powered Class 8 trucks in Arizona from 2023.
It requires these trucks to receive 14,000 orders worth $10 billion. But these orders are not binding.
General Motors) Stated that GM will become the 11% owner of Nikola and will produce Badger electric pickup trucks on the same platform as the upcoming GM electric pickup truck. “Data-reactid=”37″> A week ago, Nikolai and GM Car company. (NYSE:GM) stated that General Motors will become the 11% owner of Nikola and will produce Badger electric pickup trucks on the same platform as the upcoming General Electric Pickup Trucks.
General Motors will also supply its Ultium batteries and Hydrotec fuel cells for Nikola’s Class 8 trucks. On the day of the announcement, Nikola’s share price rose by more than 40%. By Monday, the stock fell to a high of $20, then closed at $35.79.
GM Chief Executive Mary Barra said on Monday that GM had conducted all due diligence on the Nicholas deal and refuted Hindenburg’s claim that GM had “did not do its homework”.
Nikola’s shares fell more than 7% on Tuesday afternoon.
After Nicholas’ partial refutation of the allegations on Monday, Hindenburg called the response “acquisition of securities fraud.”
Hindenburg said on its website Tuesday: “We listed 53 questions at the end of the report, and we believe shareholders should answer them.” “The company promised to make a full point-by-point rebuttal, but then only answered it. Our 10 questions.”
Nicholas’ response seemed to cover Hindenburg’s 15 claims, and the rest were rejected. One issue that has attracted much attention is whether the fuel cell prototype demonstrated by Nikola in 2017 can operate under its own power. Milton claims it can. But Hindenburg followed up on Bloomberg’s report in June. Both point to Milton’s misleading statements.
Bloomberg’s report angered Milton so much that he threatened to sue journalist Ed Ludlow and ban Bloomberg from engaging in future Nikolai activities. It is not clear whether a lawsuit was filed. Since his story, Ludlow has participated in Nikola online media events.
Nikolai claimed that he never said that the prototype was moved on his own, and TV commercials showed that it was moving and never claimed that it was operated independently. Hindenburg said that the truck was a “salesman” and was filmed on the descending slope, giving the impression.
Nikolai said on Monday: “It has never been described as’under his own impetus’ or as’powered by the powertrain’.” Nikolai was a private company at the time, and he said that investors at the time knew the function of the prototype. It said the three-year-old video “is irrelevant, but short sellers are trying to use it as the main paper.”
Buy and sell stocks
After contacting the Securities and Exchange Commission (SEC) on Friday, Nikola hinted that his initiative could make the SEC an ally. After the market closed on Monday, Bloomberg quoted an unnamed source as saying that the agency is investigating the matter and added that there will be no results.
Milton hated the Hindenburg attack, which he called “strike work.” However, documents submitted by the US Securities and Exchange Commission (SEC S-4) show that in response to the decline in stock prices, he purchased 41,400 shares in four transactions on Monday, with prices ranging from $30.10 to $33.59.
On August 26, Milton allocated his 6 million personal shares to long-term employees. Last week, he took follow-up actions and provided 350 existing employees with 1 million personal shares. The only requirement is that they have been in the company for three years.
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NKLA latest rating
|September 2020||Royal Bank of Canada Capital||maintain||Industry performance|
|August 2020||Wedbush||Start coverage||neutral|
|August 2020||Wedbush||Start coverage||neutral|