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9/10/2020, 3:04 PM (Source: TeleTrader)
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Nikola+0.85%

20.10
Chart for: Nikola Corp

Hindenburg Research calls Nikola Motor 'fraud'

Hindenburg Research described Nikola Corporation as a "new short" on Thursday, calling the company's business strategy an "intricate fraud built on dozens of lies."

The outlet accused the company's CEO Trevor Milton of making false statements to both media and business partners, deceptive marketing, and said that "Milton has laid the groundwork to extract hundreds of millions from Nikola years before ever delivering on his promises," noting that he "cashed out $70 million" around the firm's initial public offering.

"The remarkable thing about Nikola’s story is not that someone like Trevor Milton exists, but that he has managed to parlay his stories and lies into deals with some of the best manufacturers and partners in the world by claiming to own vast proprietary technology and having successfully built revolutionary products that simply didn't exist," the report concluded.

The company's shares dropped 8.38% in premarket trading, selling for $42.37 per share.

Breaking the News / BU