"On September 11, Nikola's legal counsel proactively contacted and briefed the U.S. Securities and Exchange Commission (SEC) regarding Nikola's concerns pertaining to the Hindenburg report". Hindenburg Research's report raised questions about the validity of Nikola's claims over the years, as well as accusations of nepotism. Advertisement The SEC did not immediately respond to a request for comment on this story.
Hindenburg had shorted the stock last week and said it had gathered enough evidence to show Nikola founder Trevor Milton made false statements about possessing proprietary technology to form partnerships with large automakers.
The report, which came days after Nikola announced a $2 billion deal with General Motors that sent its market value soaring more than 40%, caused its stock price to drop as much as 25%.
Despite Nikola's lengthy report - and in some cases because of it - criticisms have arisen over the company's previous promotional tactics, specifically surrounding its first hydrogen electric semi truck prototype, the Nikola One.
At the time, a Nikola spokesperson said the report was "filled with misinformation" created to benefit Hindenburg's short bet, while Milton called it a "hit job" while promising a more detailed response to the allegations. In Nikola's response to "set the record straight," it claims that elements of its Nikola One proof of concept were functional, including the batteries, gearbox and inverters, but admits it never did the work to make that model capable of driving under its own propulsion.