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Nikola Motors issues response to short-seller's 'fraud' claim
Nikola founder: Partnership with GM will bring $10B of savings for our company
Nikola founder and Executive Chairman Trevor Milton discusses working with General Motors on a new electric truck, called The Badger.
Nikola Motors has issued a response to a scathing note from short-seller Hindenburg Research last Thursday that precipitated a dramatic drop in the startup automaker’s stock price. The response aims to contradict several accusations.
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Two days after Phoenix-based Nikola announced it was giving General Motors an 11% stake worth $2 billion in exchange for the manufacture of a proposed hydrogen-electric pickup along with the supply of GM fuel cell technology for Nikola’s semi-trucks, Hindenburg called Nikola “an intricate fraud built on dozens of lies.”
Short-sellers, who place bets a stock will fall, can and do publish research that can negatively influence the share price. When this occurs, the "shorts" benefit.