A new report claims that zero-emission vehicle startup Nikola Motor has made a number of public statements and misleading representations about its technology and business. The allegations include that Nikola made a 2018 video driving his signature hydrogen fuel cell truck, and that he made misleading claims about his battery development efforts after the failure of an acquisition deal.
The allegations come from Hindenburg Research, which has no Nikola stock. The most striking claim in the Hindenburg report is that a video was made from January 2018 that allegedly showed a Nikola One hydrogen fuel cell semi-trailer moving on its own accord. Hindenburg’s report includes evidence confirming that the section of road shown in the video could accelerate a moving vehicle to highway speed, along with text messages from a former Nikola employee that appears to confirm the tactics.
Given these claims, it is notable that Nikola repeatedly described the video as showing the truck “in motion”, which would be technically true even if the truck did not move under its own power.
Another important claim made in the Hindenburg report is that Nikola and Milton have misrepresented the company’s efforts to develop a new type of battery for use in electric vehicles.
In November 2019, Milton stated that Nikola would soon reveal “the biggest breakthrough we’ve seen in the world of batteries.” Those claims appear to have been based on the planned acquisition of a company called ZapGo, but by December, Nikola had pulled out of that acquisition.
Despite pulling out of the deal, Nikola did not review his public message about an impending revolution in electric vehicle battery technology. In a June interview with Fortune and in other public statements, Milton continued to promise an imminent introduction of the technology. Milton claimed that Nikola was working to commercialize battery technology that he had licensed to academic researchers, but declined to name those researchers. Experts who evaluated the claims about Nikola’s battery were skeptical of the company’s aggressive program.
More questions arose about Nikola’s previous battery claims with Tuesday’s announcement that Nikola would use battery technology licensed from General Motors in vehicles, including its upcoming Badger pickup. That announcement sent Nikola and GM shares skyrocketing. On Thursday, the Hindenburg report appears to be slipping both stocks, with Nikola falling nearly 10% at press time and GM nearly 4%.
The Hindenburg report also makes a variety of other claims about the Nikola and Trevor Milton hoax, including Milton’s alleged misrepresentations of previous companies he founded and sold.
Nikola sent a short statement in response to the Hindenburg report: “Nikola has been scrutinized by some of the most credible companies and investors in the world.
Nikola did not address the questions about Hindenburg’s specific claims, including questions about whether the truck shown in the 2018 video was moving on its own power, or who Nikola’s battery development partners were for the summer. . 2020.
Although its short position would allow it to profit from negative stock movements, Hindenburg Research has built a solid reputation in recent years thanks to in-depth investigation of public misrepresentations and accounting irregularities at companies such as Smile Direct Club, SC Worx. . and Bloom. Energy. Many of Hindenburg’s claims about these and other companies were later confirmed by other reports, by regulators or by the companies themselves.
