Investment firm calls Phoenix-based Nikola Corp. an ‘intricate fraud’; stock price falls – The Arizona Republic

Investment firm calls Phoenix-based Nikola Corp. an ‘intricate fraud’; stock price falls – The Arizona Republic

Shares in Phoenix-based Nikola Corp. slid Thursday after an investment firm reported the maker of alternative-fueled trucks fraudulently claimed its vehicles could do things they can’t, like drive.

Among the most flagrant allegations in the report from Hindenburg Research is that Nikola simply rolled one of its trucks down a hill to film a promotional video in an “elaborate ruse” because the vehicle was not functional.

Nikola stock was down about 11% for the day, though it’s still up for the week following blockbuster news Tuesday that General Motors would spend $2 billion on an 11% stake in the company.

Hindenburg has “shorted” stock in Nikola, meaning the company intends to profit if the stock declines. That means the negative report Hindenburg issued serves its own purposes to profit if it causes investors to dump the stock.

“Nikola has been vetted by some of the world’s most credible companies and investors,” Nikola said in a prepared statement in response to the report. “We are on a path to success and will not waver based on a report filled with misleading information attempting to manipulate our stock.”

Hindenburg Research, which is intentionally named after the 1937 airship disaster and specializes in takedowns of
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