The creator of electric pickups Nikola was called a fraud

The creator of electric pickups Nikola was called a fraud

September 11, 2020 0 By autotimesnews

The accusations were made by the former shareholder of the brand

One of the former shareholders of Nikola, an electric pickup startup, said its founder, Trevor Milton, was a fraud and the company’s ads were based on lies. Such accusations were made by the analytical firm Hindenburg Research – it published a report on Nikola’s fraud on its own website.

From the publication it follows that Milton has appointed his brother Travis as the head of the hydrogen production unit, although he has neither the necessary qualifications nor experience in this field. In addition, the brand’s advertising is based on deception: allegedly, the Nikola One truck, declared as an innovative vehicle, is not capable of driving on its own, so for filming the video it had to be lowered down the slope in order to create the effect of movement.

Hindenburg Research also called Trevor Milton’s claims that Nikola was able to reduce the cost of hydrogen production by 81 percent compared to peers as false. In fact, the company did not even start producing it. It also turned out to be a deception that the main components of the trucks are Nikola’s own development. In fact, the startup bought components on the side, and for the video, it seals the names of the companies with duct tape.

The former shareholder also commented on the recent news about the strategic partnership between Nikola and General Motors. Hindenburg Research believes that only Nikola, which has gained access to the technologies of one of the largest automobile concerns, benefits from this agreement.

Nikola shares rose 50 percent on the back of the announcement of a partnership with General Motors, but declined 11 percent following the publication of fraud charges. Today the company’s capitalization is $ 14.2 billion. This is twice as high as, for example, Renault.