Nikola’s shares plunge, SEC & DOJ to investigate to fraud allegations
Category: #business  | By Nikita Chaurasia  | Date: 2020-09-17 |
  • shareshare_icon
  • Twitter
  • Facebook
  • LinkedIn

Nikola’s shares plunge, SEC & DOJ to investigate to fraud allegations

 

  • SEC and DOJ are investigating Hindenburg’s claims that Nikola misled its investors
  • Nikola’s shares plunged by 8.3% and reached USD 32.83 following the reports of the investigation

According to reliable sources, shares of Nikola Corporation, an American zero emission trucks developer, witnessed a significant drop after the Department of Justice (DOJ) and the Securities & Exchange Commission (SEC) initiated an inquiry regarding Hindenburg’s fraud claims.

For those uninitiated, Hindenburg Research, a short seller, previously alleged that Nikola’s founder Trevor Milton, made false statements regarding the company’s technology and misled its investors as a part of its expansion strategy as well as to partner with other automotive manufacturers.

Although there is no assurance that DOJ or SEC will initiate an investigation in full swing regarding the alleged reports, Nikola’s shares plunged by 8.3% and reached USD 32.83, stock reports claimed. In fact, the stock continued to drop throughout the extended-hours trading. The company’s shares were trading at 7% lower as of Tuesday afternoon.

SEC’s inquiry is reportedly at an initial stage to verify whether the Arizona-based electric truck manufacturer has violated securities laws, cited sources with knowledge of the matter. In this context, Nikola claimed that it proactively contacted SEC and is open to the inquiry.

It appears that Hindenburg’s allegations came along the heels of General Motor’s announcement that it is acquiring an 11% stake in Nikola Corp. Moreover, Nikola’s shares grew more than 40% following the announcement.

Marry Barra, CEO at General Motors, was reported saying that the company conducted a meticulous investigation on Nikola before initiating the deal.

General Motors, the American multinational corporation, is reportedly planning to develop the Badger, Nikola’s electric pickup truck by the year 2022. Additionally, GM will also offer its Hydrotec fuel cells and Ultium batteries for Nikola’s Class 8 trucks.

Source Credits –

https://www.cnbc.com/2020/09/15/nikolas-shares-fall-as-sec-reportedly-examines-short-sellers-fraud-claims.html

  • shareshare_icon
  • Twitter
  • Facebook
  • LinkedIn


About Author

Nikita Chaurasia     twitter

Nikita Chaurasia

Having always been daft at wordplay, Nikita Chaurasia, post the completion of post-graduation, commenced her journey into the content generation cosmos. Endowed with a professional MBA degree in Advertising and Public Relations, Nikita strives to integrate her creativ...

Read More..

More News By Nikita Chaurasia

General Motors passes Ford to become the second-best EV seller in U.S.

General Motors passes Ford to become the second-best EV seller in U.S.

By Nikita Chaurasia

Detroit-based American multinational automaker, General Motors, has reportedly pulled ahead of fellow American rival, Ford Motor, to establish itself as second-biggest seller of all-electric vehicles in the US during the first quarter of 2023. The...

McKinsey commences job cuts focused on non-client serving teams

McKinsey commences job cuts focused on non-client serving teams

By Nikita Chaurasia

McKinsey and Co. a consulting giant entity has decided to start cutting jobs in one of the biggest rounds of layoffs for the company. This is likely to eliminate the jobs of about 2000 employees from work. The layoffs will be focused on support st...

Fintech firm PayPal to shed around 2000 staff as global economy plummets

Fintech firm PayPal to shed around 2000 staff as global economy plummets

By Nikita Chaurasia

PayPal, the U.S.-based fintech giant, has reportedly announced that it will cut nearly 2000 jobs, approximately 7% of its workforce, as it turns the latest prominent tech company to shed staff in a bid to cut costs. The online payments provider cl...