Jim Cramer Asks: Did GM See the Nikola Tape?

Katherine Ross

Reports of a probe by on Nikola the U.S. Securities and Exchange Commission following allegations of fraud levied by noted short-seller Hindenburg Research.

In a statement via email, Nikola said, “On September 11, Nikola’s legal counsel proactively contacted and briefed the U.S. Securities and Exchange Commission (SEC) regarding Nikola’s concerns pertaining to the Hindenburg report. Nikola welcomes the SEC’s involvement in this matter." 

This comes after back and forth statements between Nikola and Hindenburg analysts following a Thursday report from Hindenburg. which said it had collected data from phone calls, text messages, and emails that detail dozens of false statements from the company's founder and executive chairman Trevor Milton, sending the group's shares 25% lower over the next two sessions session and loping more than $5 billion from its market value.

GM CEO Mary Barra, who unveiled a lucrative joint venture with Nikola last week, told an industry conference Monday that questions regarding the issues raised in the Hindenburg report should be put directly to the company, but added that the carmaker performed a “thorough review of business, legal and technical matters” before inking its deal.

Jim Cramer weighs in on Nikola and whether or not GM's deal with the company is already starting to sour.

You can follow Jim Cramer and Katherine Ross on Twitter at @JimCramer and @byKatherineRoss. Read more from Katherine Ross here.

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Comments (1)
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cramerrocks
cramerrocks

On Linkedin Nikola has some very impressive engineering talent. PhDs and experts engineers from all relevant fields and top-name engineering universities worldwide. Only problem is Trevor's big mouth inexperience which i believe he has learnt his lesson. I think GM knew that will change in time. Nikola business plan is solid and vetted out by plenty of leading scientists and big-energy corps.

IMO Nikola needs a leader similar to Dr. Lisa Su. MIT, humble, genius, predictable, patient, true on promises, focus on great products and customer success, "commands respect after earning it" and not "demands respect by expecting it".