The Securities and Exchange Commission is launching a probe into EV maker Nikola after a scathing report by an investment group accused the automaker of fraud.
Hindenburg, which describes itself as an “activist short-seller,” is alleging that Nikola misled investors regarding its business prospects.
Hindenburg says it gathered evidence that shows the company’s founder lied about possessing proprietary technology to form partnerships with other automakers.
The investor also alleges that Nikola’s video footage of its truck suggested it was driving on its own, but it was actually “filmed rolling down a big hill.”
Nikola, in turn, says Hindenburg has manipulated the stock, by way of these accusations, to benefit short-sellers.
Nikola’s stock is down 9% on the allegations.
On Monday, the company announced its manufacturing partner CNH is working on prototypes of the Nikola Tre semi-truck and hopes to launch them by 2021.