MENTORS
  • News
    • Billionaires
    • Economy
    • Top Mentors
  • Business
    • Power Women
    • Marketing
  • Self Growth
    • Money
    • Spirituality
  • Podcast
    • Apply
    • Exclusive Interviews
  • ContributeTOP
No Result
View All Result
  • Login
MENTORS
  • News
    • Billionaires
    • Economy
    • Top Mentors
  • Business
    • Power Women
    • Marketing
  • Self Growth
    • Money
    • Spirituality
  • Podcast
    • Apply
    • Exclusive Interviews
  • ContributeTOP
No Result
View All Result
MENTORS
No Result
View All Result

Can Nikola become the next Tesla?

Jay Feldman by Jay Feldman
September 22, 2020
in Business
Reading Time: 2min read
Can Nikola become the next Tesla?
Share on FacebookShare on TwitterShare on LinkedIn

ONE WAY to try to emulate Tesla’s success is to name your firm after the same person. Nikola, founded in 2014 to make electric and hydrogen-powered lorries, is, like Elon Musk’s carmaker, named after Nikola Tesla, a Serbian-American pioneer of electricity. Nikola’s market value nudged $30bn after it went public in June. Some investors were puzzled that a firm not yet selling vehicles could be worth more than Ford, which sold 5.4m last year. Nikola’s share price fell back over the next two months. It jumped again on September 8th, after General Motors said it would take an 11% stake in the firm.

This time the euphoria was even more short-lived. On September 10th Hindenburg Research, an investment firm (named after the airship disaster from 1937) released a report calling Nikola an “intricate fraud” that had told an “ocean of lies”. Nikola’s shares shed 36% of its value over the next couple of days.

Among other things, Hindenburg alleges that Trevor Milton, Nikola’s boss, made misleading statements when he unveiled the Nikola One, a hydrogen-electric lorry. Mr Milton, Hindenburg said, suggested a demo vehicle was driveable when it was not. A Nikola One shown traveling along a road in a separate video, Hindenburg claimed, was in fact rolling down a hill unpowered. The investment firm also gave short shrift to Nikola’s claims of revolutionary hydrogen and battery technologies and cast doubt on the expertise of Nikola’s staff.

Nikola described Hindenburg’s report as “a hit job…driven by greed”. It pointed out that Hindenburg had a short position in Nikola’s stock, so it stood to profit if the price of Nikola’s shares fell (as Hindenburg acknowledged in its report). On September 14th Nikola published a statement accusing Hindenburg of “false and defamatory” claims designed to “manipulate the market”. It also appeared to concede that the Nikola One unveiled by Mr. Milton had not been driveable and confirmed that the vehicle in the video had indeed been unpowered. But the firm notes that a later model, the Nikola Two, has driven under its own power several times. It characterized itself as an “early-stage” company trying to “prove its concepts”.

On September 11th Mr. Milton tweeted a statement that Nikola “intends to bring the actions of the activist short-seller, together with evidence and documentation, to the attention of the US Securities and Exchange Commission”. On September 15th the Wall Street Journal reported that the Department of Justice had taken an interest in the case. General Motors says it is “fully confident in the value we will create by working together” with Nikola. Nikola itself says that all its other partners are sticking with it. Investors appear more jittery. Nikola’s share price is down 27% from the day before Hindenburg’s report.

Read More

Tags: cartesla
Jay Feldman

Jay Feldman

I am an Osteopathic doctor with a love for business, traveling, and animals. I hope to give back to the community through empowering individuals to help others through media and business. I love learning new things and sharing them with the world. I hope you enjoy my page.

Related Posts

Sasha Canady: The Marketing Expert to Serve All People
Featured

Get to Know Greater Heights Creative: The Multifaceted Creative Agency Using Artistry to Fuel Engagement

If the last year has taught us anything, it’s that artistic content creators possess boundless potential. Whether it’s a...

by Ian Monroe
April 5, 2021
168
Sasha Canady: The Marketing Expert to Serve All People
Featured

Sasha Canady: The Marketing Expert to Serve All People

In 2014, Sasha Canady graduated from the University of Delaware with a Bachelor's Degree in Mass Communication with a...

by Lara Rosales
April 1, 2021
190
Business In Space: How Tourism and Other Markets Are Joining the New Space Race
Marketing

Blumenthal Impressing in the SEM Business and, Most Importantly, Impressing Himself

Drew Blumenthal isn’t being cocky or conceited when he brazenly says, “I’m very impressed with myself and what I’ve...

by Ian Monroe
April 1, 2021
160
Kristen Edwards Is on a Mission To Help Women Double Their Income
Business

Business In Space: How Tourism and Other Markets Are Joining the New Space Race

Nearly 50 years ago, humanity stood in solidarity with one another as we watched Neil Armstrong and Buzz Aldrin...

by Ian Monroe
March 30, 2021
173
Next Post
President Trump supposedly has actually approved the Oracle deal for TikTok’s US operations

President Trump supposedly has actually approved the Oracle deal for TikTok's US operations

ADVERTISEMENT
  • About
  • Free Mentorship Group
  • Podcast Show
  • Apply for Podcast
  • Support
  • Become a Contributor
Mentors Collective Success Magazine

Owned by Otter Love LLC

No Result
View All Result
  • News
    • Billionaires
    • Economy
    • Top Mentors
  • Business
    • Power Women
    • Marketing
  • Self Growth
    • Money
    • Spirituality
  • Podcast
    • Apply
    • Exclusive Interviews
  • Contribute

Owned by Otter Love LLC

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Go to mobile version