It is not a great time for Nikola (NKLA) stock holders. Long story short- After one of the best days in NKLA history (signing deal with GM) and a 50% run up, share price lost everything in a matter of 24 hours.
“We have compiled a great deal of evidence – including recorded phone calls, text messages, private emails and behind-the-scenes photos – containing dozens of false testimonies by Nikola founder Trevor Milton. We have never seen before this level of deception in a public enterprise, especially in a company of this size. “-said Hindenburg report
Soon after this report surfaced, Trevor Milton, founder of Nikola Corp, posted a video via social media. And is seems as if this video caused even more outrage than Hindenburg Report.
And all because he used almost exactly the same “arguments” like the ones we saw back in 2015, during the last Theranos days.
Back then The Wall Street Journal made a report on Theranos where they wrote that Theranos is able to perform only 15 of its 240 tests using its own equipment.
Theranos strongly rebutted the Journal’s assertions using these words:”Stories like this come along when you threaten to change things, seeded by entrenched interests that will do anything to prevent change.“
Someone caught very similar statement in a video response by Mr. Milton:”When you are changing the world…these people want to take you down, it is all about money and greed.”
It's taken longer to respond to the bull crap. Who cares if it takes me longer so I get the responses right. I'm not God. I can't write rebuttals instantly. There's dozens of pages here of lies and it's going to take longer to get it right. I'll work through the night. Chill out— Trevor Milton (@nikolatrevor) September 11, 2020
Even though allegations by Hindenburg report might be false, all investors are asking themselves, what is a billionaire and a founder of a big company doing on social media fighting short sellers. In the words of one worried investor:”Shares are down because there is still zero sales zero growth zero product. You shouldn’t be spending 14 hours replying to a negative story, hire a PR firm, CEO is supposed to lead and grow the company.” Still, in Mr. Milton’s defense, he is not a CEO, but a founder of a company.
Tremendous use of $NKLA company time responding to an "imaginary Twitter user"— Canadian Daytrader (@evdaytrader) September 11, 2020
Nikola Corp (NKLA) stock shed more than 11% on Thursday and another 2.18% in after-hours session. What the Friday holds for NKLA stockholders? Probably nothing special since the weekend is ahead of us and many will probably sell on Friday. Unless Mr. Milton comes up with something of considerable importance.