(NKLA), General Motors Company (NYSE: GM) – Tilson says Nikola’s Trevor Milton will land “behind bars for securities fraud”


Nikola Corporation (NASDAQ: NKLA) were trading slightly higher Wednesday afternoon on another volatile trading day following allegations of fraud by short seller Hindenburg Research last week.Nikola’s Bulls are hopeful that the stock price has found support after the SEC and Justice Department announced the company is probing, but former hedge fund manager Whitney Tilson believes the ultimate outcome for Nikola and his co-founder Trevor Milton will be the worst. – case scenario.

At this point, Nikola and Milton responded to Hindenburg’s accusation of “a litany of significant misrepresentation made by Nikola’s founder and executive chairman Trevor Milton”.

The EV developer said the Hindenburg report was opportunistically timed after the announcement of Nikola’s partnership with General Motors and the resulting positive stock response.

Nikola called Hindenburg’s report “false and defamatory” in a press release on Monday.

The short report “was designed to give the wrong impression to investors and to negatively manipulate the market to financially benefit short sellers, including Hindenburg himself,” Nikola said.

Is Nikola’s rebuttal lackluster? The initial Hindenburg report came out just a day after Nikola announced a $ 2 billion production deal with General Motors Company (NYSE: GM).

Hindenburg has since responded to Nikola, saying the company’s rebuttal only answered 10 of the 53 questions asked by the short seller in the initial report.

Nikola’s response did not refute any of Hindenburg’s original claims, the short seller said.

“Instead, he confirmed or circumvented virtually everything we wrote and in some cases raised new unanswered questions,” Hindenburg wrote in his response.

Tilson speculates on the criminal charges: In his Tuesday Daily Bulletin, Tilson said a friend told him this week he thought it was only a matter of time before Nikola and Milton were charged.

“I agree and predict with confidence that General Motors will end the partnership with Nikola it announced last week, Nikola’s stock will collapse and Milton will end up behind bars for securities fraud Said Tilson.

Nikola had not responded to a request from Benzinga for comment on Tilson’s statements at the time of publication on Wednesday.

GM CEO Mary Barra said on Monday the company had a “very capable” Nikola veterinary team before the partnership was concluded.

On Wednesday, JPMorgan reiterated an overweight rating on Nikola and said the company’s chief financial officer Kim Brady told them Nikola was experiencing “no loss of momentum with existing partners, potential customers, suppliers and the employees”.

Taking Benzinga: Nikola’s share price took a big hit from where it peaked after GM’s deal was announced, but it’s still far from a complete collapse, as predicted by Tilson.

The ultimate fate of the company depends on whether Milton was intentionally misleading in his claims about the company and its technology or simply being aggressively optimistic about its future capabilities.

Related links:

Why Nikola’s Squeeze Shorts Might Be Coming “Very Soon”

Nikola Sell-Off Gears Up Following Milton’s Response to Hindenburg Report

Photo courtesy of Nikola.

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