Nikola (NKLA) Shares Remain in the Spotlight as the Company Finally Publishes a Rebuttal and Wall Street Jumps Into the Fray With Endorsements

Nikola Corporation (NASDAQ:NKLA) shares were expected to continue feeling the reverberations of last week's showdown with Hindenberg Research. That prognostication appears to be panning out today equally the company has published a detailed rebuttal to the allegations contained in the damning written report and Wall Street has followed suit with an endorsement of Nikola's bull case.

We had noted in our previous post that Nikola should have addressed the allegations leveled past Hindenburg Research last week. Nonetheless, after enduring a pummeling over the past couple of days, the visitor seems to have finally cobbled together a rational response. Acquit in mind that Hindenburg's attack featured two main volleys. The first asserted that Nikola, contrary to its public claims, does not possess whatever revolutionary or proprietary technology concerning batteries and hydrogen fuel cells, every bit illustrated by the fact that information technology is utilizing GM'south under-development Ultium battery system and Hydrotec fuel cell technology for the Badger pickup truck. The second accusation alluded to Nikola's supposed proclivity of employing deliberate charade as modus operandi. Today, Nikola has tried to address both of these issues.

In the kickoff office of its response, Nikola announced that the Nikola Tre semi-truck, to exist manufactured in collaboration with IVECO, will be "ready for production and available to customers by the fourth quarter of 2021". The company and so went on to land:

"During 2021, Nikola will begin testing a pre-production Nikola Ii, a hydrogen-electrical powered semi-truck for the medium and long-haul trucking sectors, with more than 1,000 horsepower and ii,000 ft. lbs. of torque. Anheuser Busch LLC previously announced its placement of an order for upward to 800 trucks, with a prototype to exist delivered by the end of 2021, testing planned for 2022, and a production version expected in the second one-half of 2023."

Taking a direct jab at Hindenburg's most striking allegation, Nikola attached a YouTube video that shows a hydrogen fuel-prison cell driven Nikola electric truck image completing a beer commitment for Anheuser-Busch on public roads while operating on hydrogen:

Bear in heed that Hindenburg had stated in its study, released last Thursday, that:

"We reveal how, in the face of growing skepticism over the functionality of its truck, Nikola staged a video called "Nikola One in Motion" which showed the semi-truck cruising on a road at a loftier rate of speed. Our investigation of the site and text messages from a former employee reveal that the video was an elaborate ruse—Nikola had the truck towed to the peak of a colina on a remote stretch of route and simply filmed it rolling downwards the hill."

The company addressed this explosive allegation in the following manner:

Nikola never stated its truck was driving nether its own propulsion in the video, although the truck was designed to do just that (as described in the previous indicate). The truck was showcased and filmed by a third party for a commercial. Nikola described this third-party video on the Company'south social media every bit "In Movement." It was never described every bit "under its own propulsion" or "powertrain driven."

In other parts of the rebuttal, Nikola has quoted the response from Bosch where the German powerhouse has asserted that the report took the quotes of a Bosch employee out of context:

"The employee spoke only about Bosch'due south own plans for the IAA industry show and H2Haul project for the European Wedlock."

Addressing the merits that Nikola placed sticker tapes over third-political party inverters in order to give the impression that they were manufactured in-house, the rebuttal takes the line that:

"At no fourth dimension did Nikola state that the inverter on the prototype truck shown in the video was the Visitor's or would be used in production. Nikola has been designing, technology and working on its own inverters for quite some time. The Company does use 3rd-party parts in prototype vehicles, some of which may exist later on swapped out for its own parts in production."

Hindenburg had claimed in its report:

"In October 2019, Nikola appear it would revolutionize the battery manufacture. This was to be done through a awaiting acquisition, but the deal fell through when Nikola realized (a) the technology was vaporware and (b) the President of the bombardment visitor had been indicted months earlier over allegations that he conned NASA by using his expense business relationship to procure numerous prostitutes."

Nikola has antiseptic in its rebuttal today that its claims regarding proprietary bombardment technology were made in relation to the company's ongoing R&D partnership with a leading bookish institution and not ZapGo, the entity referenced past Hindenburg.

Finally, regarding its hydrogen capabilities, Nikola stated:

"The Company has also partnered with one of the virtually well-known hydrogen experts in the world, Nel ASA. Farther, Nikola has already installed a 1,000 kg hydrogen storage and dispensing demo station at its headquarters and ordered over $30 million of electrolyzers to back up the initial hydrogen station rollout."

As stated earlier, while this rebuttal is still quite vague in places and skirts several problems, information technology is nonetheless, a step in the correct direction.

Today, Wall Street behemoths – JP Morgan (NYSE:JPM) and Wedbush Securities – have likewise jumped into the arena in support of Nikola. JPMorgan annotator, Paul Coster, noted in a research note that the visitor's ongoing collaboration with several companies – including the likes of Full general Motors (NYSE:GM), CNH (CMHI), and Bosch – "is a major positive, not a negative".

Similarly, Wedbush annotator, Daniel Ives, stated in a fresh investment notation today that Nikola'due south partnership with GM is a paradigm changer and that he continues to view the stock as a "evidence me" story. Accordingly, the annotator reiterated a 'Neutral' rating and a stock price target of $45.

Source

Perhaps in light of these developments, Nikola appears to exist paring its losses. While the stock was down around 10 per centum in early trading, it is near flat currently.

Source: https://wccftech.com/nikola-nkla-shares-remain-in-the-spotlight-as-the-company-finally-publishes-a-rebuttal-and-wall-street-jumps-into-the-fray-with-endorsements/

Posted by: chongthimirse.blogspot.com

Nikola (NKLA) Shares Remain in the Spotlight as the Company Finally Publishes a Rebuttal and Wall Street Jumps Into the Fray With Endorsements