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Nikola can be under an eye of Justice Department after a report accused the company of misleading!

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Nikola

Nikola corporation is accused of misleading the investors by the Justice Department and the US securities regulators. As per the report, it is said that the company is making large claims about the technology to its investors. This subject is handled by the Manhattan U.S. attorney’s office. They are also working with the Securities and Exchange Commission. Nikola is the maker of electric and hydrogen-powered semi-trucks. The company was listed publicly in the month of June. There are speculations that the company is making wrong claims with respect to its key technology. The officials have declined to comment on the issue.

The concerned authorities of Nikola have also declined to make any comment on the issue. The Manhattan US attorney office said that they will disclose the issue whenever they will have something to tell to the public. A report was also published about the same issue last week by a seller. It was a 67-page report. The author of the report was Hindenburg. The company although didn’t take any action against the report and said that they are glad to have the involvement of the regulator. As per the report, it was said that the founder and executive chair of the company is making false statements regarding the development of the company’s technology.

After the report was made public the company has lost 20% of the valuation and has dropped by 8%. However, the company said that the report was totally false. The company was doing great before the report because it has just struck a deal with Grand Motors this week. It has also appointed a legal counsel for the matter. The company is also said to have hired a crisis management firm. However, the company has not sold any trucks yet. The first heavy truck from the company was supposed to be launched this year.

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