Shares of Nikola recovered from early losings Monday as the vehicle that is electric disputed fraud claims made last week by short-selling firm Hindenburg Research.
The company said there were “dozens” of inaccurate allegations within the report, and it outlined specific examples in a statement Monday.
But Nikola isn’t disputing one of Hindenburg’s largest claims — that it staged a video clip showing a truck that appeared to be functional but wasn’t, aswell as claims that the automobile was fully practical.
Monday Nikola shares closed at $35.79, up 11% following a rebuttal as well as commentary from Nikola CFO Kim Brady, who reassured investors the company’s plans remain on track. He also reconfirmed reviews made week that is last detailed billions in potential cost savings from established partnerships, and specifically called out General motors to its plans. Shares of Nikola recovered from early losings Monday as the vehicle.
Short-seller Hindenburg blasts Nikola as ‘false’ and ‘misleading’
Nikola stated it anticipated saving “over $4 billion in battery and powertrain costs over 10 years and over $1 billion in engineering and validation costs.”
“I think it’s offensive to the strategic partners that they don’t know what they’re doing,” Brady stated during an RBC Capital Markets seminar that you have got actually a short seller who’s doing a hack job and essentially pointing fingers at our strategic partners. “i might suggest it really is ridiculous to consider they haven’t done a dive that is deep a lot more dive that is deep what any third party quick seller would be in a position to perform.”
Regarding the video, Nikola stated it “never stated its truck was driving under its propulsion that is very own in video, although the truck was built doing simply that.” However, there also were no disclaimers that the truck had beenn’t functioning on its own.
“It was never called ‘under its propulsion that is own ‘powertrain driven,’ ” the business said. Nikola said investors at that time knew the capabilities of the model vehicle, calling the video that is 3-year-old except for the fact that is actual the short seller is attempting to use it for its main thesis.”
It was said by the company “ultimately decided not to take a position resources that are additional to do the automobile. It alternatively shifted resources to another pickup, called the Nikola Two, which the ongoing company has demonstrated is self-propelled. Shares of Nikola recovered from early losings Monday as the vehicle.