Nikola Corp. Still Can’t Catch a Break

While Nikola continues to deny wrongdoing, the short attacks continue.

Hindenburg Research went on the attack again calling Nikola’s response “a tacit admission of securities fraud,” as quoted by its site.  “We included 53 questions at the end of our report that we believe shareholders deserve answers to,” Hindenburg said. “The company promised a full point-by-point rebuttal, but then only responded to 10 of our questions.”

“Beyond common sense, the company referred to the Nikola One as “the 1,000 HP, zero-emission Nikola One semi-truck” in the description of its video. Obviously, the truck can’t have 1,000 horsepower or even 1 horsepower if it doesn’t power itself,” they added.

Making things a bit worse for Nikola, the US SEC and US DOJ are reportedly looking into the short seller claims.  

For example, The Wall Street Journal is reporting, “Specifically, federal prosecutors are probing allegations that Nikola, a maker of electric and hydrogen-powered semi-trucks that listed publicly in June, misrepresented progress it made in developing key technology core to releasing new models.”

While there’s no guarantee of a full investigation, the news was enough to send shares of NKLA lower on the day.

At the moment, according to Nikola, it has “contacted and briefed the U.S. Securities and Exchange Commission (SEC) regarding Nikola’s concerns pertaining to the Hindenburg report. Nikola intends to fully cooperate with the SEC regarding its inquiry into these matters.”

Shares of NKLA currently trade at $34.07, down from a recent high of $54.56.