The scam continues. The entire company exists only on paper. I mean, I gotta hand it to them, they know how to sell air.
A Truck Maker With Zero Revenue Scores $7.6 Billion Return for Early Backers
It may have zero revenue, but Nikola Corp.’s stock surge has rewarded a few early believers with 10-figure gains on paper.
Six investors have positions in the truck maker totaling $8.3 billion after investing about $650 million combined, according to an analysis of filings by the Bloomberg Billionaires Index. They include the Agnelli family’s CNH Industrial NV, with a $1.6 billion holding; $1.3 billion for Jeff Ubben’s ValueAct Capital Management, and $1.4 billion controlled by South Korea’s Hanwha Group.
The value of these stakes has fluctuated wildly since Nikola’s reverse merger earlier this month with VectoIQ Acquisition Corp., and skeptics have questioned whether the company will sustain its lofty market value. Short-seller Andrew Left of Citron Research predicted Nikola shares, which climbed as high as $93.99 last week, would fall to $40 in a month. The stock rose as much as 8% before the start of regular trading Wednesday after closing at $62.93 Tuesday.
“I wouldn’t be surprised if they never get a truck on the road,” Left said.
They have $10 Billion in pre-orders. It cost $0 to pre-order.
I like it lots. I probably wouldn't like the stupidly unnecessary engineering overkill that Musk can't seem to resist (complex computer-controlled servo-driven door latches in place of two metal rods and a bushing, etc.)
Rob Lister wrote: ↑Sun Jun 21, 2020 1:14 pm
I like it lots. I probably wouldn't like the stupidly unnecessary engineering overkill that Musk can't seem to resist (complex computer-controlled servo-driven door latches in place of two metal rods and a bushing, etc.)
When you learn the pressurized cabin version is going to be the work vehicle on the moon and Mars, it makes more sense.
still working on Sophrosyne, but I will no doubt end up with Hubris
Rob Lister wrote: ↑Thu Jun 18, 2020 12:01 pm
The scam continues. The entire company exists only on paper. I mean, I gotta hand it to them, they know how to sell air.
A Truck Maker With Zero Revenue Scores $7.6 Billion Return for Early Backers
It may have zero revenue, but Nikola Corp.’s stock surge has rewarded a few early believers with 10-figure gains on paper.
Six investors have positions in the truck maker totaling $8.3 billion after investing about $650 million combined, according to an analysis of filings by the Bloomberg Billionaires Index. They include the Agnelli family’s CNH Industrial NV, with a $1.6 billion holding; $1.3 billion for Jeff Ubben’s ValueAct Capital Management, and $1.4 billion controlled by South Korea’s Hanwha Group.
The value of these stakes has fluctuated wildly since Nikola’s reverse merger earlier this month with VectoIQ Acquisition Corp., and skeptics have questioned whether the company will sustain its lofty market value. Short-seller Andrew Left of Citron Research predicted Nikola shares, which climbed as high as $93.99 last week, would fall to $40 in a month. The stock rose as much as 8% before the start of regular trading Wednesday after closing at $62.93 Tuesday.
“I wouldn’t be surprised if they never get a truck on the road,” Left said.
They have $10 Billion in pre-orders. It cost $0 to pre-order.
Nikola Corporation (NASDAQ:NKLA 32.13 -14.48%) shares continue to experience epic volatility, fueled by wild price swings as a result of dramatic developments over the past couple of days. The pre-revenue company is currently facing perhaps the most arduous challenge of its corporate existence, resulting in pitched battles between the bulls and the bears not only on the stock exchange but also on Twitter and other social media platforms as investors try to justify their individual thesis on what the future holds for Nikola.
While the situation remains as obfuscating as ever, Nikola bulls believe that the company is being unfairly targeted by short-sellers. On the other end of the spectrum, the company’s detractors perceive it as a horrendous reincarnation of the infamous Theranos saga. In today’s post, we’ll try to assess the prevailing situation objectively and then synthesize what this endless parade of allegations and counter-allegations means for the stock price.
First, let’s take a cursory stock of the current situation. Early last week, Nikola super-charged the bullish sentiment in its shares when it announced a strategic partnership with General Motors (NYSE:GM 30.46 0.96%). We have covered the minutiae of this arrangement in a previous post. To summarize, GM will provide batteries, fuel cells, and other essential components for Nikola’s Class 8 electric trucks. The auto giant will also manufacture the company’s much-anticipated Badger electric pickup truck. In return, GM will receive an 11 percent stake in Nikola worth around $2 billion. It will also receive another $2 billion as compensation for providing services as well as access to key parts and components, including $700 million in production-related costs. Finally, GM will receive the lion’s share of the tax credits that will be generated by retailing the Badger truck. On the 8th of September, when this deal was announced after the extended holiday weekend, the stock jumped by an astonishing 40 percent relative to the closing price of $35.55 registered the week before.
However, things took a turn for the worse when Hindenburg Research published a scathing report on Thursday (10th of September), leveling two major allegations against Nikola. The first asserted that Nikola, contrary to its public claims, does not possess any revolutionary or proprietary technology concerning batteries and hydrogen fuel cells, as illustrated by the fact that it is utilizing GM’s under-development Ultium battery system and Hydrotec fuel cell technology for the Badger pickup truck. The second allegation alluded to Nikola’s supposed proclivity of employing deliberate deception as modus operandi. You can gain further insight by heading to our dedicated post on this subject. Thereafter, on the 11th of September, Citron Research also publicly came out in support of Hindenburg’s findings against Nikola.
Grammatron wrote: ↑Wed Oct 04, 2017 7:52 pm
Tesla wants to be a global vehicle manufacturer on par with GM or Ford.
Feb 4, 2020
With a market capitalization topping $160 billion, Tesla has now become larger than U.S. Big 3 automakers General Motors (NYSE:GM) ($50 billion), Ford (NYSE:F) ($36 billion), and Fiat Chrysler (NYSE:FCAU) ($26 billion) combined -- and almost enough room left over to toss on Mercedes-Benz manufacturer Daimler ($50 billion) for good measure. The move has left many wondering exactly how Tesla got here -- and what's ahead for the car company down the road.
Tesla becomes most valuable automaker, worth more than GM, Ford, FCA combined. Tesla is now worth more than any automaker in the world as its stock price soars past $1,000 per share.
Nikola announced early Monday that founder Trevor Milton is voluntarily stepping down from his roles as executive chairman and a member of its board.
The electric truck company said the board accepted Milton’s resignation, adding that Stephen Girsky, former vice chairman of General Motors and a member of Nikola’s board, has been appointed chairman of the board, effective immediately.
A fool thinks himself to be wise, but a wise man knows himself to be a fool.
William Shakespeare
Nikola Motor reveals it received subpoenas from DOJ, SEC
Washington, DC (CNN)Nikola Motor Company, a manufacturer of electric and fuel cell trucks, announced in a regulatory filing Monday that it has received subpoenas from the Securities and Exchange Commission and the Department of Justice in connection to fraud allegations leveled at the company by a short-seller.
