A two-day jump has actually removed each of the increase the inventory accumulated after an unpleasant surprise statement Tuesday that General Motors Co. would certainly get a $2 billion equity concern in Nikola.
Milton actually took it to Twitter and quickly called the whole report a "hit job". Nikola said that it retained an outside counsel, Kirkland & Ellis, for possible legal recourse and that it would work with the Securities and Exchange Commission to rebut the report.
Milton later tweeted photos in an effort to disprove Hindenburg's allegations, and asked, "Do these look fake?"
Nikola has denied all of the claims in Hindernburg Research's report.
One of the biggest claims from the Hindenburg report is the suggestion that Milton's statements during a July 2020 podcast directly indicate that the Nikola Tre was rolling off of production lines at a company facility in Europe. Andrew Left of Citron Research in June told Business Insider he had taken a short position against the stock, saying "I don't think they will ever get a mass-produced vehicle", and dismissing the company as a "wannabe Tesla".
Hidenburg Research's founder, Nathan Anderson, said he welcomed Nikola's pledge to petition securities regulators. "It will be released as soon as they give me the green light", he said. "Let's be clear, Nikola approached the SEC, not the other way around".
Nikola shares were down 15.8 percent Friday afternoon, trading at $31.63. The share loss gained momentum after another firm that often issues short-selling reports weighed in: Citron Research.
Deutsche Bank also was positive on the GM-Nikola deal. It thanked Hindenburg in a tweet, offering to pay for half of any legal expenses incurred.
Since it went public in June via a reverse merger, Nikola has grown to be worth $14.25bn, and has been widely touted as a competitor to electric vehicle market leader Tesla. At one point, Nikola shares had ballooned to nearly $80 a share, giving it a market capitalization greater than Ford Motor Co. despite not generating any meaningful revenue. And is seems as if this video caused even more outrage than Hindenburg Report.
General Motors, which is not investing any cash as part of its deal to swap expertise and parts with Nikola, said it stands by the comments it made when announcing the partnership earlier this month.
The bargain dedicated GM to making the start-up's launching electrical pick-up, named the Badger. GM expressed confidence Thursday in its partner's ability to create value. Hindenburg asserts that Nikola has misled investors concerning, among other things, its battery and hydrogen fuel cell claims, as well as its purported "multi-billion-dollar order book", which Hindenburg asserts is "filled with fluff".