• Tue. Sep 21st, 2021

SPAC Stock

Special-purpose acquisition company

NASDAQ: NKLA stock investors were slapped with the most fascinating short hit piece in modern stock market history! Now investors are shaken as this news dropped the the stock over 15% and CEO Trevor Milton fights his way to reassuring investors on twitter that they aren’t breaking SEC rules.

This intensively written article by Hindenburg Research revealed many deception the CEO has made to inspire investors into buying a future that currently stands on no ground. From claims of fake prototype promo videos and taping up logos of so called proprietary truck parts, let’s go over the most epic claims that have investors shook!

Those Times Nikola Lied To Us

Imagine you were promoting a brand new idea to revolutionize an entire industry but it just wasn’t ready yet, so you decide to make it look real to raise money. This is one of the largest claims & though isn’t exactly illegal the Hindenburg Report claims it crossed SEC rules when the CEO Trevor Milton claimed as though it was real as a persuasion method.

The first major issue was this advertisement video of a so called prototype of Nikola’s truck technology driving down the highway, later to be revealed as being pushed and was not actually function able.

Now this was not the first time Nikola has done this another claim the Hindenburg makes is that on the live truck reveal on stage the truck was being operated by cables running under the stage and not by its own electric or hydrogen motors.

Now the next major deception that could lead to SEC investigation is property parts that Trevor claimed they had including batter technology and inverters. However it was documented that tape was put over logos on inverters of the truck covering up logos of third party companies.

The reason this has investors concerned is it seems to be a continuing pattern of deception as Nikola partnered with GM to do the manufacturing of the badger trucks and there battery technology, in which prior Trevor claimed they had there own propriety batteries.

By far the sketchiest thing about the GM partnership is the fact Nikola gave up a 11% stake with GM putting up no risk other then testing the manufacturing of the Nikola Badger which if sales are weak GM can walk away essentially free of liability. Besides it also makes a legacy automaker look modern in the news but not sure if this is the best news for Nikola share holders.

This is only scratching the surface as investors are already suing over claims made in this article and it will be interesting to see how Nikola gets spat out on the other side of this. I highly suggest you take some time and further explore Hindenburg Report as someone put some serious effort into this and with just reasoning to do so.

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