Tesla rival Nikola is reportedly under SEC investigation over short seller’s claims that the electric truck maker misled investors; lost 6% of its value after the news
We wrote about Nikola in early August after it was reported that electric maker and Tesla competitor made only $36,000 in revenue in the second quarter of this year. Nikola, a company that is currently valued at $13.28 billion, released its first quarterly report as a public company, following its merger with special purpose acquisition company VectoIQ in June.
According to a filing with the Securities and Exchange Commission (SEC), its second-quarter revenue was $36,000. And to make things worse, its entire second-quarter revenue of $36,000 was for solar panels for Executive Chairman Trevor Milton.
Now, the company seems to be facing another problem. The SEC is reportedly looking into the merits of a short seller’s claims that electric truck maker misled investors. The probe is reportedly in the preliminary stages to determine whether Nikola may have violated securities laws, according to a report from Bloomberg.
A short seller by the name Hindenburg accused Nikola founder Trevor Milton of making false statements about its technology in order to grow the company and partner with auto companies. In a report titled “Nikola: How to Parlay An Ocean of Lies Into a Partnership With the Largest Auto OEM in America,” Hindenburg characterized Nikola as an “intricate fraud built on dozens of lies” by Milton. The report was released two days after the company announced a deal with General Motors that sent both companies’ shares soaring.
Founded in 2014 by Trevor Milton, the Salt Lake City-based company builds heavy-duty transport trucks using hybrid hydrogen-electric powertrains. Named after inventor Nikola Tesla, the company designs and manufactures electric vehicles, vehicle components, energy storage systems, and electric vehicle drivetrains.