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Nikola plummets 13% after short-seller report alleges years of deception and false statements made by CEO | Markets – Business Insider

https://www.businessinsider.com/nikola-stock-price-short-seller-report-alleges-years-deception-hindenburg-2020-9

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Trevor Milton
Trevor Milton, Nikola’s founder and executive chairman.

  • Nikola plummeted on Thursday after a short-seller report from Hindenburg Research alleged that the company and its CEO, Trevor Milton, had made false statements overhyping its technological capabilities.
  • The Hindenburg report came two days after General Motors announced a $2 billion partnership with the electric-vehicle manufacturer, sending shares of Nikola up nearly 50%.
  • Hindenburg was short shares of Nikola when the report was published.
  • Milton tweeted in response to the report: “I guess everything is fair game in war, even a hit job. I know who funded it now. Give me a few hours to put together responses to their lies. This is all you got?”
  • Visit Business Insider’s homepage for more stories.

The 53% surge that Nikola experienced on Tuesday in response to its $2 billion partnership with General Motors appears to have been short-lived, as a short-seller report sent shares plummeting as much as 13% on Thursday.

In the report, Hindenburg Research, which is short shares of the electric-vehicle manufacturer, said it found “extensive evidence” — including recorded phone calls, text messages, and private emails — that CEO Trevor Milton had made “dozens of false statements” over the years.

Hindenburg alleged that Nikola engaged in several deceptive practices, from overhyping the capabilities of its electric semitruck to filling its multibillion-dollar order book “with fluff,” that led the short-seller to believe that its partners “did not do their homework.”

Read more: Buy these 16 tech stocks that are beaten down from the pandemic and now primed for explosive growth in the months ahead, Stifel says

Hindenburg was likely referring to General Motors and its partnership with Nikola. General Motors said on Tuesday that it would provide engineering and manufacturing services to build Nikola’s Badger electric pickup truck while receiving an 11% stake in Nikola worth $2 billion.

Hindenburg said it suspected that Tesla’s relentless rally “pressured” General Motors to make a deal with Nikola to increase its exposure to the electric-vehicle space.

And as Nikola stock has remained elevated since it went public earlier this year via a reverse merger with a special-purpose acquisition company, its “key partners and backers have been cashing out aggressively,” the report said.

“Worthington, Bosch and ValueAct have all sold shares. Worthington sold $237 million shares over a 2-day span in July and another $250 million in August,” Hindenburg said.

Read more: Renowned strategist Tom Lee called the market’s rebound from its worst-ever crash. He lays out 9 bullish forces for stocks after this week’s ‘overdue’ sell-off, and shares his best strategy for cashing in.

In response to the short-seller report, Milton tweeted on Thursday: “It makes sense. Tens of millions of shares shorted the last day or two to slam our stock and hit job by hindenburg. I guess everything is fair game in war, even a hit job. I know who funded it now. Give me a few hours to put together responses to their lies. This is all you got?”

Shares of Nikola fell as much as 13%, to $37.05, while shares of General Motors fell as much as 2%. Nikola has still traded more than 5% higher since it announced the partnership with General Motors on Tuesday.

Read more: Morgan Stanley says the stock market’s future is ‘unusually dependent’ on another stimulus package — and recommends 5 portfolio moves to make if Congress passes another round

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Stocks making the biggest moves in the premarket: Disney, Micron, Dow Inc., GM & more – CNBC

https://www.cnbc.com/2020/09/30/stocks-making-the-biggest-moves-in-the-premarket-disney-micron-dow-inc-gm-more.html

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Take a look at some of the biggest movers in the premarket:

Walt Disney (DIS) – Disney is cutting 28,000 jobs in its theme parks division, as the coronavirus impacts park visits and as the company’s flagship Disneyland resort remains closed for the foreseeable future due to restrictions imposed by California.

Palantir (PLTR) – Palantir will begin trading on the New York Stock Exchange today in a direct listing, with the NYSE setting a reference price of $7.25 per share for the data analytics company’s stock. That values Palantir at $15.8 billion ahead of its market debut.

Asana (ASAN) – Asana will also begin trading today on the NYSE, with a reference price of $21 per share for the software company. Palantir and Asana are only the third and fourth companies to go public via direct listing, following Spotify (SPOT) and Slack (WORK).

Micron Technology (MU) – Micron beat estimates by 9 cents a share, with quarterly earnings of $1.08 per share. The chip maker’s revenue also beat forecasts. Micron gave a lower-than-expected current-quarter revenue estimate, however, partly due to the U.S. government ban on shipments to China’s Huawei Technologies.

Dow Inc. (DOW) – The materials science company announced plans to reduce its global workforce costs by 6%, although it did not announce how many jobs might be cut. It will take a current quarter charge of $500 million to $600 million in connection with the restructuring.

General Motors (GM) – GM will not close its deal to buy a stake in electric truck maker Nikola (NKLA) today, according to sources who spoke to CNBC’s Phil LeBeau. Talks between the two sides will continue, however, amid accusations by short-seller Hindenburg Research that Nikola had misled investors about its technology. Nikola has denied those accusations.

Caesars Entertainment (CZR) – The casino operator’s $3.7 billion bid to buy William Hill was accepted by the British betting firm, with William Hill saying it believed the deal was the best option for shareholders at an attractive price.

Canada Goose (GOOS) – The outerwear maker was upgraded to “outperform” from “market perform” at Cowen, which noted the company’s strong brand equity and global strength.

Royal Dutch Shell (RDS.A, RDS.B) – The energy giant said it plans to cut up to 9,000 jobs, after completing a broad cost-cutting review. Those cuts will be completed by the end of 2022, at a projected savings of up to $2.5 billion annually.

Apple (AAPL) – Apple CEO Tim Cook was granted 333,987 restricted stock units, his first stock grant since 2011. Apple’s board said it made the award in recognition of Cook’s “outstanding leadership.”

Moderna (MRNA) – Moderna’s experimental Covid-19 vaccine appears safe and shows signs of working in older adults, according to study results published in the New England Journal of Medicine.

Regeneron Pharmaceuticals (REGN) – The drugmaker said its experimental Covid-19 treatment was effective in treating early-stage illness, improving symptoms and reducing virus levels in patients who were not hospitalized.

Duke Energy (DUK) – Duke was approached by NextEra Energy (NEE) about a takeover recently, according to people familiar with the matter who spoke to The Wall Street Journal The paper said Duke rejected the approach but that NextEra was still interested in pursuing a combination of the two Southern utility companies.

Sherwin-Williams (SHW) – The paint producer boosted its sales and profit outlook, thanks in large part to a boost in painting projects by homebound consumers.

Starbucks (SBUX) – Starbucks was upgraded to “outperform” from “market perform” at Cowen, which notes that the coffee chain has expanded digital access with new pay options and also seen rapid growth in curbside pickup.

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Stocks making the biggest moves in the premarket: Disney, Micron, Dow Inc., GM & more – CNBC

https://www.cnbc.com/2020/09/30/stocks-making-the-biggest-moves-in-the-premarket-disney-micron-dow-inc-gm-more.html

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Take a look at some of the biggest movers in the premarket:

Walt Disney (DIS) – Disney is cutting 28,000 jobs in its theme parks division, as the coronavirus impacts park visits and as the company’s flagship Disneyland resort remains closed for the foreseeable future due to restrictions imposed by California.

Palantir (PLTR) – Palantir will begin trading on the New York Stock Exchange today in a direct listing, with the NYSE setting a reference price of $7.25 per share for the data analytics company’s stock. That values Palantir at $15.8 billion ahead of its market debut.

Asana (ASAN) – Asana will also begin trading today on the NYSE, with a reference price of $21 per share for the software company. Palantir and Asana are only the third and fourth companies to go public via direct listing, following Spotify (SPOT) and Slack (WORK).

Micron Technology (MU) – Micron beat estimates by 9 cents a share, with quarterly earnings of $1.08 per share. The chip maker’s revenue also beat forecasts. Micron gave a lower-than-expected current-quarter revenue estimate, however, partly due to the U.S. government ban on shipments to China’s Huawei Technologies.

Dow Inc. (DOW) – The materials science company announced plans to reduce its global workforce costs by 6%, although it did not announce how many jobs might be cut. It will take a current quarter charge of $500 million to $600 million in connection with the restructuring.

General Motors (GM) – GM will not close its deal to buy a stake in electric truck maker Nikola (NKLA) today, according to sources who spoke to CNBC’s Phil LeBeau. Talks between the two sides will continue, however, amid accusations by short-seller Hindenburg Research that Nikola had misled investors about its technology. Nikola has denied those accusations.

Caesars Entertainment (CZR) – The casino operator’s $3.7 billion bid to buy William Hill was accepted by the British betting firm, with William Hill saying it believed the deal was the best option for shareholders at an attractive price.

Canada Goose (GOOS) – The outerwear maker was upgraded to “outperform” from “market perform” at Cowen, which noted the company’s strong brand equity and global strength.

Royal Dutch Shell (RDS.A, RDS.B) – The energy giant said it plans to cut up to 9,000 jobs, after completing a broad cost-cutting review. Those cuts will be completed by the end of 2022, at a projected savings of up to $2.5 billion annually.

Apple (AAPL) – Apple CEO Tim Cook was granted 333,987 restricted stock units, his first stock grant since 2011. Apple’s board said it made the award in recognition of Cook’s “outstanding leadership.”

Moderna (MRNA) – Moderna’s experimental Covid-19 vaccine appears safe and shows signs of working in older adults, according to study results published in the New England Journal of Medicine.

Regeneron Pharmaceuticals (REGN) – The drugmaker said its experimental Covid-19 treatment was effective in treating early-stage illness, improving symptoms and reducing virus levels in patients who were not hospitalized.

Duke Energy (DUK) – Duke was approached by NextEra Energy (NEE) about a takeover recently, according to people familiar with the matter who spoke to The Wall Street Journal The paper said Duke rejected the approach but that NextEra was still interested in pursuing a combination of the two Southern utility companies.

Sherwin-Williams (SHW) – The paint producer boosted its sales and profit outlook, thanks in large part to a boost in painting projects by homebound consumers.

Starbucks (SBUX) – Starbucks was upgraded to “outperform” from “market perform” at Cowen, which notes that the coffee chain has expanded digital access with new pay options and also seen rapid growth in curbside pickup.

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Seven airlines close billions of dollars in loans with Treasury – Fox Business

https://www.wsj.com/articles/seven-airlines-close-billions-of-dollars-in-loans-with-treasury-11601434822?mod=hp_lista_pos2

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The U.S. Treasury said it has closed loans to seven passenger airlines and joined with the industry to call on Congress to extend more aid to prevent massive job cuts later this week.

Airlines continue to grapple with a sharp drop-off in travel because of the coronavirus pandemic and accompanying restrictions. The loans were one of two major sources of aid to airlines under the Cares Act passed in March. Airlines also received $25 billion to continue paying workers through the summer.

Airlines…

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