Nikola Slumps, Adding to Losses Tied to Short Seller’s Report
Nikola Slumps, Adding to Losses Tied to Short Seller’s Report
(Bloomberg) -- Nikola Corp. shares slumped anew in U.S. pre-market trading, adding to last week’s plunge that was triggered by a short seller who said the electric-truck company was deceiving investors about its technology.
The stock dropped 13% to $27.85 at 5:48 a.m. New York time. In roller-coaster trading last week, Nikola surged 41% on Tuesday after it announced a partnership with General Motors Co., only to tumble in subsequent days when Hindenburg Research released a report detailing what it called “dozens of lies” about the company’s capabilities, partnerships or products.
Nikola’s shares have tumbled 24% since the Hindenburg report, which, among other sources, cited a Bloomberg story from June about the company exaggerating the capabilities of a truck. Its slump over the last three sessions was 36%. Nikola said the allegations by Hindenburg are false and that it was working on a detailed rebuttal.
©2020 Bloomberg L.P.