Electric-hydrogen truck startup Nikola responds as report calls it an

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Nikola Two

Chairman and founder Trevor Milton has some explaining to do.


Nikola is not a brand new title within the automotive subject. For years now, the startup has promised to vary the world with gas cell- and electric-powered semi vans, and in current months, buyers purchased in because the seek for the subsequent Tesla heats up. After years of it hyping proprietary know-how corresponding to “game-changing” battery tech, low cost hydrogen gas and extra, a brand new report alleges that the corporate has by no means had a lot in any respect.

As an alternative, the startup is alleged to have used smoke-and-mirror techniques to land big-name companions from Bosch to Basic Motors. A bombshell Thursday report from forensic monetary analysis agency Hindenburg Research compiles proof that it says reveals, at a minimal, that Nikola and its founder Trevor Milton have not been fully forthcoming about its vans or its powertrain programs. 

One key factor to notice earlier than we element the findings: Hindenburg disclosed that it is a Nikola short-seller, which means it could revenue if Nikola inventory performs poorly. (On its web site, Hindenburg notes that its work has prompted government resignations and investigations that led to SEC expenses.) The analysis agency did not instantly reply to Roadshow’s request for remark.

Milton, although, rapidly took to Twitter, calling the report a “hit job.”

A Nikola spokesperson instructed Roadshow, “Nikola has been vetted by among the world’s most credible firms and buyers. We’re on a path to achievement and won’t waver primarily based on a report stuffed with deceptive data making an attempt to govern our inventory.”

Final Friday, after teasing a point-by-point rebuttal to the report, Milton tweeted Nikola retained exterior council and contacted the SEC. “I need you to see how I’ve addressed every level, however it must wait to be till the SEC finishes their work,” he mentioned partly, whereas including the allegations are “false” and “misleading.” On Monday, Sept. 14, the corporate reiterated its beliefs and underscored it briefed the SEC.

“Nikola believes that the Hindenburg report, and the opportunistic timing of its publication shortly after announcement of Nikola’s partnership with Basic Motors Co. and the ensuing constructive share worth response, was designed to offer a misunderstanding to buyers and to negatively manipulate the market with a purpose to financially profit brief sellers, together with Hindenburg itself,” the corporate assertion mentioned.

Hindenburg compiled an in depth account of Nikola’s early days, predating the corporate itself and delving into Milton’s previous enterprise doings. Hindenburg accuses Milton and the corporate of “intricate fraud” and provides recorded cellphone conversations, textual content messages, emails and authorized paperwork to again up its claims. This follows a Bloomberg report, which Hindenburg corroborates, that spilled particulars on the way it says Milton and the corporate overstated the Nikola One’s abilities.

A path of proprietary know-how that by no means existed, overinflated contract offers and exaggerations of worker experiences propelled Milton to early success, Hindenburg says its proof reveals. After he established Nikola, Milton labored to over-hype and over-promise its upcoming semi truck’s capabilities and handed off items of kit, corresponding to inverters, as parts designed in-house, it alleges.

The Nikola One, for instance, was by no means a working truck, in response to the report’s proof. Regardless of Milton’s declarations that the truck was “not a pusher” and moved beneath its personal energy, no proof suggests that is the case. In truth, a video used to show the truck transferring at what regarded like freeway speeds was reportedly filmed on a downward grade with digital camera methods. The semi rolled with gravity’s momentum, not beneath its personal energy. Infotainment shows, which Roadshow’s Emme Corridor considered in individual on the One’s reveal, have been powered by a hid cable. The remainder of the know-how was a mockup, and internals have been put collectively utilizing fundamental hardware-store components, in response to the report.

Maybe worse, Hindenburg says the One by no means had a hydrogen fuel-cell powertrain in any respect. A physique shell hid pure fuel generators, in response to the report’s sources, which embrace former Nikola staff. As an alternative, Nikola stenciled hydrogen decals on the truck physique to inflate the suggestion that a game-changing gas cell powertrain resided beneath, in response to photograph proof equipped within the report.

Anheuser-Busch is probably the most publicized Nikola buyer, although it might probably nonetheless cancel its 800-truck order at any time.


The report continued to element unusual back-and-forths over the “game-changing battery cell know-how” Nikola was meant to announce this yr. The know-how was tied to Nikola’s pending acquisition of a agency referred to as ZapGo, however Nikola found the know-how did not exist in any respect; Nikola sued the corporate after investing $2.2 million for the rumored battery tech.

Based on the report, the corporate hasn’t constructed a single Tre semi, both. This contradicts earlier statements from Milton, who mentioned 5 of its Tre electrical semis rolled off the meeting line this previous July. Though the report names Bosch as a producing companion, Nikola plans to work with Iveco to provide the semi, as the 2 introduced final yr. Bosch instructed Roadshow on Friday, “Particular situations within the report quoting a Bosch worker have been taken out of context. He spoke solely about Bosch’s personal plans for the IAA business present and H2Haul venture for the European Union.” Iveco didn’t instantly reply to a request for touch upon the state of affairs.

One large pillar Nikola has been banking on for future success is the corporate’s capacity to provide or supply hydrogen gas at an inexpensive worth. Prior to now, Milton claimed Nikola produced its personal hydrogen at simply $three a kilogram — an unimaginable feat. He cited a standardized hydrogen station because the issue that drove the price down, however in response to the report, Nikola didn’t (and nonetheless doesn’t) operate a hydrogen production facility. A standardized station is irrelevant if there is not really any hydrogen in any respect. Milton admitted this summer season the corporate would not make any hydrogen itself.

The chief behind Nikola’s rollout of hydrogen infrastructure is the previous CEO and normal supervisor of a golf membership in Idaho. Its director of hydrogen manufacturing is Milton’s youthful brother, Travis, whose earlier expertise would not contain hydrogen in any respect; his LinkedIn profile reveals he was self-employed and largely labored on driveway pouring. The agency’s chief engineer has a background in software program improvement and pinball-machine restore.

The report additionally claims to make clear Nikola’s order books. The corporate has lengthy mentioned US Xpress makes up the vast majority of its orders, with 14,600 vans. Hindenburg’s investigation into US Xpress’ financials revealed it has $1.three million in money, hardly sufficient to cowl a $three.5 billion order for Nikola semis. The report additionally particulars the top of a relationship with Ryder to service vans for Anheuser-Busch and clarifies that a deal for two,500 vans for Republic Companies is for electrical vans, not hydrogen-powered automobiles. What stays unclear is what precisely occurred to 7,000 preorders supposedly backed by deposits for the One. In 2018, Nikola’s chief monetary officer left the corporate and sued. One month after the lawsuit, Nikola mentioned it could refund all One preorders. The associated authorized paperwork stay sealed so far, and Nikola deserted improvement of the One and as an alternative touted its Two semi.

Certainly, Hindenburg’s alleged proof pointing to Nikola missing its personal hydrogen or battery know-how would appear to provide the corporate’s just lately introduced GM partnership extra legs. It is not clear what GM really will get out of the deal, aside from the power to money in on snazzy startup hype. Nikola, in the meantime, really will get hardware — batteries for its promised electrical pickup truck and fuel-cell tech for its semis. Nikola absolutely would not want the hardware if it is developed the tech in-house over the previous 5 years.

A GM spokesperson merely instructed Roadshow, “We’re totally assured within the worth we are going to create by working collectively.  We stand by the statements we made in asserting the connection.”

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Contained in the Nikola One hydrogen-electric semi-truck


Initially printed Sept. 10.
Replace, Sept. 14: Provides newest assertion from Nikola in paragraph seven.

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