Nikola Corp., the Phoenix company that's planning a major entry into zero-emissions truck manufacturing, said Monday that allegations raised by a recent report are "false and misleading" and intended to manipulate its stock price.
In a six-page rebuttal the company says "sets the record straight," Nikola said Hindenburg Research made several misrepresentations about its technology in an effort to benefit short sellers, including Hindenburg, that profit from falling share prices.
Nikola also said it has briefed and will cooperate with the U.S. Securities and Exchange Commission on the matter.
However, the company appeared to concede to the Hindenburg allegations on one claim: that a truck used in a 2017 promotional video was not actually driving.
"Nikola never stated its truck was driving under its own propulsion in the video, although the truck was designed to do just that … The truck was showcased and filmed by a third party for a commercial. Nikola described this third-party video on the Company’s social media as 'In Motion.' It was never described as 'under its own propulsion' or 'powertrain driven,'” the company wrote in its response.
The Nikola response goes on to say that investors knew the capabilities of the truck "at the time of their investment." The company called the video "irrelevant except for the fact that the short seller is trying to use it for its main thesis."
Nikola: Vehicle progress continues
Nikola said it continues to make significant progress in developing zero-emissions heavy trucks, partly in partnership with European manufacturer Iveco, with a short-haul electric-battery truck ready for delivery by the fourth quarter of 2021, along with a hydrogen-electric semitruck for medium and long hauls that it will begin testing next year. Anheuser-Busch is among the customers that have placed orders for the latter vehicle.
Nikola said it will begin testing of an electric garbage truck in early 2022 with full production beginning the following year. Phoenix-based waste hauler Republic Services has placed an order for 2,500 trucks. Republic Services did not respond to a request for comment from The Arizona Republic last week.
Nikola also reiterated that it has formed a strategic partnership with General Motors under which the latter will engineer and manufacturer Nikola's Badger pickup trucks that will include different all-electric and hydrogen fuel cell powertrains, with production expected to start in late 2022. GM issued a statement last week saying it was committed to the Nikola partnership.
In addition, Nikola said it remains committed to building hydrogen-fueling stations and to completing the first phase of its manufacturing plant in Coolidge, in Pinal County, by the fourth quarter of 2021.
Rebuttals to other allegations
Nikola also said the Hindenburg Report "contains a number of false and misleading statements" such as one involving comments from an employee of partner Bosch, use of some third-party equipment in prototype vehicles, mischaracterization of Nikola's battery technology and the false portrayal of why a former chief financial officer left the company.
In addition, Nikola said that a big-rig truck that sits in its showroom south of Sky Harbor International Airport is a real vehicle capable of being driven on its own power, contrary to one allegation in the Hindenburg report.
The report contributed to a roughly 40% plunge in Nikola's stock price last week.
Reach the reporter at russ.wiles@arizonarepublic.com.
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