Last week, Hindenburg Research made scathing remarks about Nikola, calling them a fraud of a company. This week, Nikola has released its rebuttal.
On Monday, Nikola Motors shared a press release that claims to set the record straight on Hindenburg’s “false and misleading short seller report.” In it, the company argues that its use of third-party equipment on a prototype for a promotional video does not change its plan to deliver quality electric vehicles by 2021.
The original Hindenburg report claimed that Nikola was simply using a third-party power inverter and placing its own sticker on it in a promotional video. However, in the press release, Nikola answered back saying that it never claimed that the inverter in the video would be used in production.
This is a game of semantics. Obviously, if you show a vehicle driving, the expectation is that it's doing it under its own power. pic.twitter.com/Pji2MSI8UB
— techAU (@techAU) September 14, 2020
While Nikola’s defense owned up to some of the claims made by Hindenburg, Twitter users saw a different story. Many users commented that the use of third-party equipment in its promotional video was deceptive and should not be tolerated.
Since the Hindenburg report, Nikola’s (NKLA) stock has fallen greatly. While it began to recover on Monday, the trend is still generally headed downward, and it will be interesting to see how it unfolds throughout the week.
Zach is a writer, musician, and EV enthusiast, currently residing in Santa Rosa, Ca. Loves his wife, his cat Banks, and a good cup of coffee.