https://apnews.com/edf9d9a1d30081d024a76f66395ec9c5 Source: AP By DAVID McHUGH FRANKFURT, Germany (AP) — Shares in electric and hydrogen-powered truck startup Nikola plunged on Monday after the company’s founder resigned amid allegations of fraud - just two weeks after signing a $2 billion partnership with General Motors. The company said late Sunday that Trevor Milton resigned and the departing executive chairman said he would defend himself against accusations that the company made false claims about its vehicles, allegations Nikola rejects. Milton said in a message to Nikola employees that he was stepping aside because “the focus should be on the company and its world-changing mission, not me.” Shares in the company based in Phoenix, Arizona, were off 30% in premarket trading. A report from Hindenburg Research from Sept. 10 said the company’s success was “an intricate fraud” and based on “an ocean of lies” including a video showing a truck rolling downhill to give the impression it was cruising on a highway, and stencilling the words “hydrogen electric” on the side of a vehicle that was actually powered by natural gas.
It will be interesting to see what happens with Nikola in the future now. But like with any claimed product, a claim is a claim until I see a product delivered.
As I posted in the Nikola stock performance thread, it looks like they haven't completely lost the confidence of the market and GM hasn't bailed either. Stock is actually up a smidge (3.98%) today to $28.65.
