https://www.marketwatch.com/story/s...s-an-intricate-fraud-in-new-report-2020-09-10 UPDATE: Short seller Hindenburg alleges that electric truck maker Nikola is an 'intricate fraud' in new report
I've been a Nikola bear since near the beginning. The more I read, the more I assumed they were all talk and no action. Particularly their talk about how easy it would be to build a BEV class 8 truck, was unabated hot air. Still, I don't take the Hindenburg report as corroboration to my own position. A mistake we've seen time and again is that someone will analyze some data, put together a hypothesis, and then consider every agreeing opinion to be corroboration. This is a nonobjective method. Even more common is having a position, collecting some data, and discarding everything that disagrees while embracing all other opinion that is in alignment. This is called ignorance. I doubt Hindenburg has significantly different data than we do, with which to analyze Nikola. It's an interesting piece. It's interesting to see someone else in agreement with my own thoughts but this does not make me more correct. I may end up being incorrect on this. Time will tell. It will be interesting to see more information become publicly available. Much of that information is simply the timeline on which Nikola is operating. How long they can go with no significant product will tell the story.
Back to the GM deal..... The press release states GM is to get $2B of stock which amounts to about 11% of the company. That statement values Nikola at $18B. That's a high value for a company that hasn't done anything and isn't selling software that can scale without cost. The market values Nikola at $12B. That's a high value for a company that hasn't done anything and isn't selling software that can scale without cost.
When this market cycle ends, and they always do, I think NKLA will be one of those "WTF were they thinking?" stocks.
I haven't seen them manufacture anything. Except for video of a truck with no engine or drivetrain, rolling downhill. As someone who makes a living greasing whores, I am offended. Whores, greasy or dry, are honest. They don't deserved to be compared to those liars.
Now we find out the prototype One they showed in 2016, and emphatically stated was a running truck, was not a working prototype. This tree appears ready to fall. Current price $31.90
Who remembers when Nikola switched from pitching the One as a fuel cell truck to a battery electric trick? Trevor Milton said it was no big deal to build a battery truck. That was well before they created a video of a powerless truck rolling down a hill to make it look like it was a working prototype. Current price $34.45 Nikola seems like low hanging fruit for a trader.
Yes interesting no doubt, maybe take a look a something with some H.C. Wainwright & Co. reality. IDEX - Ideanomics to present at H.C. Wainwright & Co. 22nd Annual Global Investment Conference on Tuesday, September 15 at 3 PM EST. To access the live webcast: https://lnkd.in/gGxpJK3 For more details about the conference, visit: http://www.hcwevents.com/
GM, in theory, could save the day. Put actual working parts into a fake truck. You have a working truck.
Right. NKLA could be fake in everyway. But once you have a few billion to throw around, you can make the things you need to be less of a scam. The fact that the stock is not $0 right now is that this is what investors are hoping will happen.
