At the auction on Thursday, September 10, shares a rival the Tesla – the company by Nikola – fell by 13% to $ 37.05 per share after the unflattering report Financial Corporation Hindenburg Research.

Earlier, on September 8, analysts wrote that the electric car manufacturer Tesla had cause for concern: Nikola had agreed to cooperate with General Motors. Under the deal, GM will receive an 11% stake in Nikola and take over the production of the Badger pickup. Nikola will receive Ultium battery technology and Hydrotec fuel cell technology. Nikola shares soared 41% on the news.

However, experts from Hindenburg Research said in their report that Nikola’s management overestimated its own capabilities for developing batteries and fuel cells. Analysts said the company misled partners with false claims about hydrogen fuel cell technology that never really existed. They also pointed to the failure of plans to buy new battery technology.

For example, Hindenburg Research denied reports that the Nikola headquarters “has roof-mounted solar panels with a capacity of 3.5 megawatts.” The company emphasized that it gathered information from phone calls, text messages, and emails, as well as photographs.

As a result, experts called the startup “a convoluted fraud built on lies,” stressing that “they have never seen a deception of this magnitude in a public company.” “Trevor Milton [Nikola’s CEO] turned the lie into a $ 20 billion public company,” the report said.

Hindenburg Research announced a short position on Nikola.

Milton, in turn, called the article a customized article and promised to answer the charges. “Over the past couple of days, tens of millions of shares have been short-traded to crash our stocks, and now there’s also a customized Hindenburg clause. I think all means are good in war <…>, ”he wrote on Twitter.

Nikola appeared in 2014.By mid-2020, it had not launched a single model, but managed to hold an IPO on the NASDAQ exchange . Since the time it went public, Nikola shares at their highs rose to $ 80 apiece, but by September their value dropped to $ 35.