Briefing

SEC investigating short seller’s fraud claims against Nikola

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The U.S. Securities and Exchange Commission is reportedly looking into claims of “intricate fraud” short seller Hindenburg Research made against the electric-truck maker, barely a week after General Motors took out an 11 per cent stake in the electric-truck maker. Nikola has so far vehemently refuted allegations it exaggerated the proprietary nature of its technology. (Bloomberg)

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Talking point: The regulators’ involvement sent the company’s shares plummeting once again on Tuesday. In the last five trading days alone, Nikola has seen its stock price decline by more than 30 per cent. Specifically, Bloomberg reported that the SEC is probing whether Nikola violated securities laws, but the review is “preliminary” and may not lead to allegations of wrongdoing. In a statement, Nikola said it had in fact already contacted the SEC about the Hindenburg report and intends to “fully cooperate.” While Nikola disputed almost all the allegations Hindenburg made, it confirmed the claim that a 2018 video showing the Nikola One semi-truck in motion was actually just a truck rolling downhill, rather than moving under its own power.