Nikola calls short-seller report a 'hit job,' shares still fall

NKLA) shares were down about 15% during Thursday’s session, even after the company released a statement calling a recent short-seller report “not accurate” and a “hit job for short sale profit driven by greed.” 

Hindenburg Research report released on Thursday accused founder Trevor Milton and the company of “intricate fraud.”. It made numerous claims against Milton and the electric vehicle company, sending shares down 11% yesterday.” data-reactid=”17″>The Hindenburg Research report released on Thursday accused founder Trevor Milton and the company of “intricate fraud.”. It made numerous claims against Milton and the electric vehicle company, sending shares down 11% yesterday.

released this morning Nikola said: “Yesterday, an activist short-seller whose motivation is to manipulate the market and profit from a manufactured decline in our stock price published a so-called ‘report’ replete with misleading information and salacious accusations directed at our founder and executive chairman.” ” data-reactid=”22″>In a statement released this morning Nikola said: “Yesterday, an activist short-seller whose motivation is to manipulate the market and profit from a manufactured decline in our stock price published a so-called ‘report’ replete with misleading information and salacious accusations directed at our founder and executive chairman.” 

The statement went on to say, “To be clear, this was not a research report and it is not accurate. This was a hit job for short sale profit driven by greed. We have nothing to hide and we will refute these allegations.”

The electric truck startup says it is evaluating potential legal recourse. It also plans to approach the Security and Exchange Commission with the short-seller’s actions and provide evidence and documents defending itself.

Some investors were expecting a more detailed rebuttal of the short-seller report from Milton or the company, especially since the founder had tweeted yesterday that one was coming. Today Milton said he has addressed each point, but his rebuttal will have to wait to be released. 

Shares of Nikola fell near session lows earlier this morning after Citron Research, also a short-seller firm, tweeted its support for Hindenburg report.

The report alleges it has “gathered extensive evidence—including recorded phone calls, text messages, private emails and behind-the-scenes photographs.” It claims that “Nikola staged a video” which showed the Nikola One semi-truck “cruising on a road at a high rate of speed.”

It also claims that Bosch, the manufacturing partner for Nikola’s “Tre” truck “confirmed this month that they haven’t made any trucks yet,” despite Milton stating in a July podcast, “We have five of them coming off the assembly line right now in Ulm Germany.” 

In a tweet this morning, Milton showed these pictures refuting the allegation. 

The Hindenburg report also says Milton “was able to form partnerships with some of the largest legacy auto companies in the world in their desperation to catch up to Tesla’s EV leadership status.”

GM) announced a partnership to make the Badger pick-up truck which will take on Tesla (TSLA) using the established automaker’s Ultium battery systems. 

The stock soared more than 40% on the day of the announcement. 

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@ines_ferre” data-reactid=”55″>Ines covers the U.S. stock market. Follow her on Twitter at @ines_ferre

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