SEC to investigate short-seller’s claims against Nikola, report says

0

The U.S. Securities and Substitute Commission is reportedly taking a explore into claims that Nikola Corp. is all for an alleged “intricate fraud,” potentially the most modern style in a query that erupted final week unbiased appropriate days after GM took an 11% stake within the newly public firm.

Bloomberg reported Monday that the U.S. company changed into once examining the firm to evaluate the merits of accusations made by rapid-vendor Hindenburg Study. The Bloomberg report, which changed into once in accordance with unnamed sources, sent Nikola shares down more than 9% in after-hours procuring and selling.

Nikola’s assertion, which changed into once sent to TechCrunch, doesn’t reply the question whether the SEC is actually investigating the matter. The firm talked about that on September 11, Nikola’s sincere counsel “proactively contacted and briefed” the SEC referring to its “concerns referring to the Hindenburg report.”

“Nikola welcomes the SEC’s involvement in this matter,” the firm added within the assertion. TechCrunch has reached out to the SEC for affirmation that the company is investigating the matter.

Whereas this saga between Hindenburg Study and Nikola began final week, questions delight in swirled in recent months over about a of the electric automaker’s past claims. The Hindenburg report, which changed into once released September 10, caused Nikola shares to tumble and its founder to take to Twitter with a aim to allay concerns. Hindenburg Study’s report raised questions referring to the validity of Nikola’s claims over time, as smartly as accusations of nepotism.

Nikola issued Monday a fastidiously worded, level-by-level rebuttal that attempts to disprove Hindenburg Study’s report. Following every of the points that Nikola denies or explains, the firm placed this assertion: “These allegations by the rapid vendor are unfounded and deceptive, and designed to govern the market to learn from a manufactured decline in Nikola’s stock worth.”

“Nikola believes that the Hindenburg report, and the opportunistic timing of its newsletter almost right this moment after announcement of Nikola’s partnership with Primary Motors Co. and the ensuing obvious half worth response, changed into once designed to present a unfounded impression to customers and to negatively manipulate the market in insist to financially profit rapid sellers, including Hindenburg itself,” Nikola talked about in its rebuttal issued Monday.

Irrespective of Nikola’s prolonged report — and in some conditions ensuing from of it — criticisms delight in arisen over the firm’s old promotional solutions, particularly surrounding its first hydrogen electric semi truck prototype, the Nikola One.

Read More

Leave A Reply

Your email address will not be published.