Nikola relied on provider expertise in early fashions and used a truck rolling downhill in a advertising video, the corporate has admitted, because it set out a prolonged defence of the truck start-up’s marketing strategy within the face of a brief vendor’s report.
Shares within the start-up have misplaced 40 per cent of their worth since Hindenburg Analysis, which earnings from Nikola’s falling inventory worth, claimed last week that the corporate faked a video and handed off bought expertise as its personal.
In an in depth, 2,700-word response posted on Monday, Nikola sought to counter what it described as “false and deceptive statements” within the report, whereas dismissing accusations in regards to the previous of its founder Trevor Milton as “not related to Nikola”.
The corporate additionally stated it was “laser-focused” and making “vital progress” in growing an electrical truck with Iveco to go on sale subsequent yr. Different partnerships, together with one with Common Motors to make an electrical pick-up truck, are additionally on monitor, it stated.
However the firm conceded a number of of the factors raised by the report, together with that it rolled a truck down a hill throughout a product video, which made the automobile seem like driving.
“Nikola by no means said its truck was driving underneath its personal propulsion within the video,” the group clarified on Monday.
“Nikola described this third-party video on the corporate’s social media as ‘In Movement’. It was by no means described as ‘underneath its personal propulsion’ or ‘power-train pushed’.”
One other accusation was that Nikola had used provider parts, whereas claiming to develop its personal programs. The corporate lined the provider emblem on an inverter, a key electrical element, with a sticker in a video, Hindenburg alleged, together with a hyperlink to the video as proof.
Nikola stated it “has been designing, engineering and dealing by itself inverters for fairly a while”.
The provider unit seen within the video “could also be subsequently swapped out for [Nikola’s] personal components in manufacturing”, it added.
“That is widespread apply amongst automobile producers and Nikola usually blocks provider names from the view of media and opponents.”
The group added: “At no time did Nikola state that the inverter on the prototype truck proven within the video was the corporate’s or can be utilized in manufacturing.”
Different particulars within the rebuttal embody that quotes from former staff and companions have been taken out of context.
One accusation levied within the Hindenburg piece — that Nikola pegged claims of an impending battery breakthrough to a enterprise referred to as ZapGo that it deliberate to buy — is fake, it stated.
“In reality, the potential battery expertise developments are associated to an ongoing confidential R&D partnership with a number one educational establishment, not ZapGo,” the corporate stated. Nikola broke off talks with ZapGo and sued the corporate, which countersued, and which collapsed into administration earlier this yr.
However the Hindenburg report stated that Nikola signed a letter of intent to accumulate ZapGo on October 31 2019. The Phoenix firm then introduced it had breakthrough battery expertise on November 19 2019, “calling it the most important development we’ve seen”.
Months after the deal to accumulate ZapGo collapsed, the report stated Mr Milton “immediately modified course” in August and instructed Tesla followers visiting Nikola’s headquarters that the corporate was working with an unnamed college on battery expertise.
The row has raised vital questions on Nikola’s personal expertise that will usually be addressed in a standard inventory market itemizing course of, however which the enterprise largely sidestepped by merging with a blank-cheque listed group this yr.
Nikola on Monday added the timing of the brief report was consider to maximise Hindenburg’s earnings, as the corporate’s shares had risen following a $2bn partnership with Common Motors that was introduced solely days earlier.
Whereas Nikola’s inventory has declined greater than 40 per cent, GM’s shares have misplaced about 10 per cent of their worth because the report got here out.
