Business
Shares of Nikola Corp fell 8per cent on Thursday after Hindenburg Research shorted the stock and labeled the electric truck maker a "fraud" in a scathing report, evoking a sharp response from the company, which accused the short-seller of manipulating the high-flying stock.
FILE PHOTO: U.S. Nikola's logo is pictured at an event held to present CNH's new full-electric and Hydrogen fuel-cell battery trucks in partnership with U.S. Nikola event in Turin, Italy, December 3, 2019. REUTERS/Massimo Pinca
Share this content
Bookmark
REUTERS: Shares of Nikola Corp fell 8per cent on Thursday after Hindenburg Research shorted the stock and labeled the electric truck maker a "fraud" in a scathing report, evoking a sharp response from the company, which accused the short-seller of manipulating the high-flying stock.
Hindenburg accused Nikola's founder Trevor Milton of nepotism and said it has gathered enough evidence to show that Milton made false statements to form partnerships with large automakers.
Advertisement
Advertisement
The short-seller said Milton appointed his brother, Travis, to lead the Hydrogen Production/Infrastructure unit, despite not having any substantial experience related to the sector.
"Nikola has been vetted by some of the world's most credible companies and investors", the company said in a statement.
"(We) will not waver based on a report filled with misleading information attempting to manipulate our stock."
Hindenburg alleged Milton misled partners into signing agreements by falsely claiming to have extensive proprietary technology.
Advertisement
Advertisement
Earlier this week, automaker General Motors Co took an 11per cent stake in Nikola and saidRead More – Source
