A Historic Scam or the Second Tesla... What Is the Truth Behind Nikola Allegations?

Exposing Fabricated Technology, Design Theft, and Sexual Assault Allegations
The Unstoppable Fall of Nikola, Which Dreamed of Becoming the Second Tesla

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Suspicion surrounding Nikola, a hydrogen electric pickup truck manufacturer once hailed as the second Tesla, is intensifying. Recently, Nikola announced its future plans under the name 'Innovation Technology Vision,' causing its stock price to surge again and somewhat calming the controversy. However, the truth battle over Nikola's suspicions continues as General Motors (GM), which had a strategic partnership with Nikola, has shifted its previous stance.

Initially, Nikola dreamed of becoming the next Tesla. The name Nikola is derived from the scientist 'Nikola Tesla,' who, along with Edison, is considered one of the two pillars of modern science and technology. Elon Musk, the founder of the electric vehicle manufacturer Tesla, has also stated that his company’s name was inspired by Nikola Tesla.

Nikola, once spotlighted as the second Tesla due to its innovative technology, began to fall last month on the 10th when Hindenburg Research, a short-selling specialist firm, released a 67-page report claiming "Nikola is a fraud." Hindenburg Research argued that Nikola's hydrogen fuel cell technology was fictitious and that the company’s claim of having its own inverter was false, revealing that it had merely filmed a commercial product with its label hidden. Furthermore, the U.S. Securities and Exchange Commission (SEC) launched an investigation into the fraud allegations surrounding Nikola, causing the suspicions to spread rapidly. Consequently, Nikola’s stock price plummeted nearly 40%.

Although Nikola’s founder Trevor Milton stepped down as chairman, the controversy did not subside. Allegations surfaced that Milton lied about personally designing the truck, when in fact he had purchased the design from a designer. Additionally, claims emerged that Milton sexually harassed his cousin Aubrey Perrin Smith and an anonymous woman, keeping the controversy alive.

In response, GM, which had a technical partnership with Nikola, reversed its previous stance of "believing in Nikola" and announced it would extend the deadline for strategic partnership negotiations. Originally, the two companies planned to conclude the technical partnership negotiations on the 29th (local time), but the deadline was postponed to December 3rd. Industry analysts interpret this as GM feeling the burden amid growing fraud suspicions.

Another negative factor is that Hindenburg Research, which first raised suspicions about Nikola, hinted at additional revelations. Nathan Anderson, founder of Hindenburg Research, stated, "The story of Nikola is not over yet," and "more bad news will emerge in the future."

Meanwhile, Nikola has intensified the controversy by postponing 'Nikola World,' an event to unveil new vehicles and technologies, citing the novel coronavirus disease (COVID-19) as the reason.

There are also forecasts that the stock price will fall further. Steve Callaghan, founder of the trading platform TickerTalker, predicted, "Nikola’s stock price is completely shattered," and "it could drop to around $5 per share."

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