Home Headline News Nikola, Milton and the SEC

Electric auto startup Nikola acknowledged Friday that the company or its founder had made several false statements, confirming elements of an investor report that sharply criticized the company.

The company said nine statements by Nikola or founder and former executive chairman, Trevor Milton, were “inaccurate in whole or part,” according to a securities filing.

The acknowledgement was the latest fallout from a withering report by short-selling firm Hindenburg Research in September slammed Nikola as an “intricate fraud” based on multiple lies by Milton.

Milton resigned shortly after the report, which was released days after General Motors announced a plan to take a stake in the Nikola. GM terminated the transaction in November, but said it reached preliminary agreement to supply its technology to the company.

The Hindenburg report has also spawned probes by the Justice Department and Securities and Exchange Commission.

Nikola hired the law firm Kirkland & Ellis to undertake an internal review, which confirmed several elements in the Hindenburg report while refuting others.

“These findings are inconsistent with the main conclusion of the Hindenburg article that the company was an ‘intricate’ or ‘massive fraud,'” Nikola said in the filing.

However, Nikola said the review was ongoing and Kirkland & Ellis had not issued conclusions as to whether any of the inaccurate statements “violated any statute.”

The company released a list of problem claims by Milton over four years, including saying an electric truck it used in a marketing video was “a fully functioning” vehicle; that all its major components were “done in house;” and that it had five trucks “coming off the assembly line.”

But Nikola said other Hindenburg charges were “inaccurate,” citing the views of Automotive Experts, a consulting firm hired by Kirkland & Ellis to “conduct an independent assessment of the current state of our technology development,” the filing said.

Automotive Experts concluded that Nikola’s workforce is led by technical and engineering staff with “deep industry experience and expertise,” that its technology is comparable with other automakers early in their development and that its “maturity level” is consistent with other “emerging original equipment manufacturer” in the sector.

You may also like


Your Trusted Source for Capital Markets & Related News

© 2023 LiveTradingNews.com – For The Traders, By The Traders – All Right Reserved.

The information contained on this website shall not be construed as (i) an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities or services, (ii) investment, legal, business or tax advice or an offer to provide such advice, or (iii) a basis for making any investment decision. An offering may only be made upon a qualified investor’s receipt not via this website of formal materials from the Knightsbridge an offering memorandum and subscription documentation (“offering materials”). In the case of any inconsistency between the information on this website and any such offering materials, the offering materials shall control. Securities shall not be offered or sold in any jurisdiction in which such offer or sale would be unlawful unless the requirements of the applicable laws of such jurisdiction have been satisfied. Any decision to invest in securities must be based solely upon the information set forth in the applicable offering materials, which should be read carefully by qualified investors prior to investing. An investment with Knightsbridge is not suitable or desirable for all investors; investors may lose all or a portion of the capital invested. Investors may be required to bear the financial risks of an investment for an indefinite period of time. Qualified investors are urged to consult with their own legal, financial and tax advisors before making any investment. Knightsbridge is a private investment firm that offers investment services to Qualified Investors, Members and Institutions ONLY. Qualified Investors are defined as individuals who have met those Qualifications in the relevant jurisdictions. Members are defined as individuals who have been accepted into the Knightsbridge membership program. Institutions are defined as entities such as banks, pension funds, and hedge funds. If you are not a Qualified Investor, Member or Institution, you are not eligible to invest with Knightsbridge. All investments involve risk, and there is no guarantee of profit. You may lose some or all of your investment. Past performance is not indicative of future results. Knightsbridge is not a registered investment advisor, and this disclaimer should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions. By accessing this website, you agree to the terms of this disclaimer. Thank you for your interest in Knightsbridge.