Nikola CFO Says "Nothing Has Changed" Despite Founder Resignation and Regulatory Investigation

US hydrogen electric vehicle company Nikola

[Asia Economy Reporter Jeong Hyunjin] Nikola, a U.S. hydrogen electric vehicle company once called the "second Tesla" but recently embroiled in fraud allegations, announced that despite the resignation of founder Trevor Milton and investigations by financial authorities, "nothing has changed" and it will continue its business.

According to the Wall Street Journal (WSJ) and others on the 22nd (local time), Kim Brady, Nikola's Chief Financial Officer (CFO), said at a video conference held that day, "We encourage investors to focus on the future and what we have delivered and will deliver."

CFO Brady expressed confidence that "we are receiving considerable consideration from our partners, and you will see that these partners strongly support us." He emphasized that General Motors (GM), a U.S. automobile manufacturer holding an 11% stake in Nikola, and Bosch, a key investor in Nikola and an automotive parts company, announced the previous day that they will continue their cooperative relationship with Nikola.

Brady's remarks came amid growing doubts about the sustainability of Nikola's business following recent fraud allegations. On the 10th, Hindenburg Research, a financial analysis and short-selling firm, released a report questioning Nikola's technological capabilities. Subsequently, news emerged that the U.S. Securities and Exchange Commission (SEC) and the Department of Justice had launched investigations related to this, intensifying the controversy.

According to Hindenburg, Nikola does not possess hydrogen electric vehicle-related technology but has formed partnerships with major automobile manufacturers. Hindenburg criticized a video showing Nikola's vehicle in motion, claiming it was pushed uphill and rolled down, suggesting the video was produced to give the impression that a functioning prototype had been developed.

Nikola partially accepted Hindenburg's claims. The video featuring the prototype was a kind of promotional video, and the vehicle did not have its own power source. However, they argued, "Nikola never stated that the vehicle in the video was driving under its own power." Hindenburg stated that they have secured phone calls, text messages, emails, and photos related to this matter.

In response, CFO Brady mentioned at the conference that before Bosch decided to invest, engineers were dispatched to evaluate Nikola and its technology, indicating that a thorough investigation had been conducted. He argued, "We never said we make all the parts. Think of Apple's iPhone. They don't make every individual part, but they control the design, functionality, and user interface."

Nikola's stock closed at $28.51 that day, up 3.37% from the previous day. This came after a 19.3% plunge the day before due to the founder's resignation news on the 20th, followed by a slight rebound to close the session.

This content was produced with the assistance of AI translation services.