Reports of a probe by on Nikola the U.S. Securities and Exchange Commission following allegations of fraud levied by noted short-seller Hindenburg Research.
In a statement via email, Nikola said, “On September 11, Nikola’s legal counsel proactively contacted and briefed the U.S. Securities and Exchange Commission (SEC) regarding Nikola’s concerns pertaining to the Hindenburg report. Nikola welcomes the SEC’s involvement in this matter.”
This comes after back and forth statements between Nikola and Hindenburg analysts following a Thursday report from Hindenburg. which said it had collected data from phone calls, text messages, and emails that detail dozens of false statements from the company’s founder and executive chairman Trevor Milton, sending the group’s shares 25% lower over the next two sessions session and loping more than $5 billion from its market value.
GM CEO Mary Barra, who unveiled a lucrative joint venture with Nikola last week, told an industry conference Monday that questions regarding the issues raised in the Hindenburg report should be put directly to the company, but added that the carmaker performed a “thorough review of business, legal and technical matters” before inking its deal.
Jim Cramer weighs in on Nikola and whether or not GM’s deal with the company is already starting to sour.