Nikola Motor Company Badger pickup truck
Source: Nikola Motor Company
Nikola shares tumbled 9% on Friday after the electric vehicle company dismissed fraud allegations made in a report by short-selling firm Hindenburg Research.
Nikola said it is considering legal options, retaining Kirkland & Ellis, and that it plans to bring documents to the Security and Exchange Commission to refute the report.
Hindenburg accused Nikola’s founder Trevor Milton made false statements about the company’s technology in order to to grow and partner with top automakers. The accusations come just days after General Motors said it is taking an 11% stake in Nikola and that it will produce its marquee hydrogen fuel cell electric pickup truck the Badger by the end of 2022.
GM shares were up 0.3% in morning trading.
Read Nikola’s full statement here:
“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
Most importantly, Nikola remains focused on delivering on the promises we’ve made to our stakeholders.”