Shares of electric-truck maker Nikola Corp. (NKLA) fell 6% in premarket trade Tuesday, after a report that the Securities and Exchange Commission is looking into allegations made last week by short seller Hindenburg Research, which called the company an "intricate fraud." ( /) Nikola responded to some of the allegations ( ) made in Hindenburg's long report on the company on Monday, before Hindenburg responded by saying the response was a "tacit admission of securities fraud." Nikola only answered 10 of 53 questions the short seller posed in its report, Hindenburg said Tuesday ( /). "Of those 10 responses, the company debunked nothing. Instead it either confirmed or sidestepped virtually everything we wrote about, and in some cases raised new unanswered questions," it said. Nikola "admitted that its deceptive "Nikola One in Motion" video was, in fact, video of the semi-truck simply rolling down a hill." Nikola said the original Hindenburg report was "false and misleading."Bloomberg reported ( ) on Monday that the SEC is reviewing the short sellers' claims. Nikola did not immediately respond to a request for comment. Nikola shares have gained 247% in the year to date.
-Ciara Linnane; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
September 15, 2020 08:49 ET (12:49 GMT)
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