Nikola refutes allegations and fires back
Nikola responds after Hindenburg Research claims company is a fraud.
A day ago, stock short seller Hindenburg Research released a report which made some rather bold claims about electric vehicle creator Nikola. It called Nikola "an intricate fraud".
The report specified "We have gathered extensive evidence—including recorded phone calls, text messages, private emails and behind-the-scenes photographs—detailing dozens of false statements by Nikola Founder Trevor Milton. We have never seen this level of deception at a public company, especially of this size." Hindenburg Research went on to make at least 20 claims of specific situations where they believe Nikola is a fraud about.
At the bottom of said report is a rather wordy disclaimer which makes statements that "To the best of our ability and belief, all information contained herein is accurate and reliable, and has been obtained from public sources", but in the report is also says elsewhere "This report represents our opinion, and we encourage every reader to do their own due diligence."
Nikola has made an official statement about the report and is firing back.
"Yesterday, an activist short-seller whose motivation is to manipulate the market and profit from a manufactured decline in our stock price published a so-called “report” replete with misleading information and salacious accusations directed at our founder and executive chairman. To be clear, this was not a research report and it is not accurate. This was a hit job for short sale profit driven by greed.
We have nothing to hide and we will refute these allegations. They have already taken up more time and attention than they deserve. We have retained leading law firm Kirkland & Ellis LLP to evaluate potential legal recourse, including with respect to the activist short seller and any others acting in concert.
Nikola also intends to bring the actions of the activist short-seller, together with evidence and documentation, to the attention of the U.S. Securities and Exchange Commission.
We respect the rights of investors and the integrity of the market and will be back to you after we have advanced the process with the SEC.
Most importantly, Nikola remains focused on delivering on the promises we’ve made to our stakeholders.”