Nikola released a statement speaking out against the allegations of fraud from Hindenburg, and also said that it would "refute" the fraud claims.
In a release emailed to TheStreet, Nikola said, "We have nothing to hide and we will refute these allegations. They have already taken up more time and attention than they deserve. We have retained leading law firm Kirkland & Ellis LLP to evaluate potential legal recourse, including with respect to the activist short-seller and any others acting in concert."
Hindenburg said it has collected data from phone calls, text messages and emails that it says detail dozens of false statements from the company's founder and CEO Trevor Milton, sending the group's shares 11.4% lower on the session and loping more than $4 billion from its market value.
Hindenburg said it has taken a short position in Nikola shares.
Citron Research posted a tweet saying that it would "cover half of all legal expenses."
Jim Cramer discusses Hindenburg and Nikola and gives investors in Nikola some advice. Watch the video above for more from Cramer.
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