Nikola Responds to Criticisms of Fraud

Following a scathing report from Hindenburg Research that called Nikola a fraudulent company largely dependent upon the blind excitement surrounding electric vehicles, the accused has finally issued a response. On Monday, Nikola released a bulleted letter suggesting the report was the act of an opportunistic short seller that was attempting to take advantage of the period immediately proceeding the announced partnership with General Motors. While Hindenburg didn’t exactly hide that aspect of itself in its own report, it frames the business as only profiting off companies that weren’t above board to begin with. It also received support from Citron Research, which said it likewise thought Nikola needed to be scoped out by the Securities and Exchange Commission (SEC) and promised to help pay for half of any legal fees incurred as a result of Hindenburg’s reporting.

Meanwhile, Nikola was crafting its rebuttal after founder Trevor Milton explained he had to wait on a comprehensive response because he was already in contact with the SEC. As his constant Twitter updates started to become counterproductive, this was likely a wise decision. The response dropped on Monday, clearing a handful of items up while making a bunch of other aspects seem even more suspect.

Read more
Scathing Report Accuses Nikola of Fraud

While we’ve suspected that electric vehicle startups and green tech, in general, is probably a little overvalued, we’ve never accused anyone of outright fraud. Burgeoning automakers have a tendency to over promise and under deliver. Throughout history, this has occasionally gotten them into serious trouble. But it’s also how the game is played, especially when you’re new to the scene and need to distinguish yourself from giant entities who would just as soon crush you in lieu of risking the eventual competition. Nikola is a perfect example of this and built a hype train so swift that legacy brands could only hope to buy it out or invest and share in the fruits of its labor before it sped away.

But what if it wasn’t ever growing any industrial fruit?

That’s the claim being made by Hindenburg Research — which specializes in short selling, pointing to firms on the cusp of financial disaster (hence the name), and attempting to bust businesses the Securities and Exchange Commission (SEC) might be interested in. The financial research firm has suggested that Nikola founder Trevor Milton had misrepresented what the company was actually capable of in terms of product, with the intent to mislead investors into thinking the company should be incredibly valuable. It reads like a hit piece and was accused by Milton of being just that. However, there are issues brought up in the report that are still worth examining.

Read more
News Round-up: Nikola Motors Mirage, Mexico City Experiencing Shanghai Noon, and Nissan Gets Corny With Fuel Cells

Is this big rig the real life? Or is it just fantasy?

Nikola Motors, the company that recently sprouted out of the proverbial ether to announce a $350,000+ turbine-electric-powered Class 8 truck, claims it’s taken in $2.3 billion in pre-orders. Say what now?

That, the air in Mexico is thick with pollution, Nissan is bridging the gap to hydrogen with a corny solution, and BMW has solved the leasing bubble … after the break!

Read more
  • 3SpeedAutomatic "...to make room for reality TV reruns..."What an insult!! Shows how far broadcast TV will stoop for a few extra bucks.I much appreciate Jay for keeping the "motor head" world alive in a Zoom society. However, maybe it's time for him to retire or semi-retire. There's enough material for him to do YouTube with most auto related companies willing to underwrite....but the number of shows would be at his own pace.I wish him well!!
  • Gregtwelve I had an '88 Turbo Coupe with 5 spd bought used and really liked it. I loved the looks, it had decent power for the time and a nice interior. Unfortunately the head gasket went at around 60K miles. I repaired it myself and sold it.
  • Mattwc1 I bought a Maverick specifically because I wanted utility and great fuel economy. My wife has a RAV4 hybrid that we really like. I think Toyota would print money with a smaller RAV4 based truck.
  • Varezhka Dunno. Looking at Maverick and Santa Cruz, having the engine in the front of the driver and a crew cab layout will mean the rear bed will be about the same size as kei trucks. And it will still be more than 16ft long. I'd rather get a Tacoma and/or a Hilux at that point.If we actually want a small truck with usable bed, it will have to be cab over layout with standard cab like Toyota TownAce Truck. We already know how popular that would be, even without getting into federal safety requirements.
  • SCE to AUX "Its militaristic, drab fortress presence, is some sort of reflection of the times."Very insightful comment in your excellent summary. The Cybertruck vs Hummer EV comparison tests will be enjoyable, sure to enflame their fans.