Between January and September 2019, the electric vehicle startup Nikola had operating losses of about 60 million dollars, which has increased notably in the same period of this year. It has reached a total of 235 million dollars. Only in the third quarter, the firm has posted a loss of 117 million dollars.
Despite these poor results, the company’s CEO, Mark Russell, has defended Nikola’s progress. “In the third quarter, Nikola made significant progress on critical milestones. We are honoring our commitment to assembling the battery-powered Nikola Tre prototypes, and we continue to work with customers on their orders. “
The company and its founder, Trevor Milton, have been subpoenaed by the New York Southern District Attorney’s office following allegations of fraud received in recent months. Therefore, it is confirmed that the United States Department of Justice is officially investigating the young startup.
This situation dates back to last September when the Hindenburg Research fund accused Nikola of not having its technology, stating that its creator had built a complex framework to support the lie. This serious complaint was backed up with evidence of all kinds, including employee testimonials and private emails.
Although Nikola has tried to deny these accusations and Trevor Milton has abandoned his positions (maintaining his actions, yes), the truth is that his credibility has been in question, especially after implicitly admitting that the videos of his hydrogen truck One were recorded with a non-functional unit, which rolled because it was “thrown” downhill.
Sources inside the company claim that Hindenburg Research’s sole intention was to manipulate the market to profit from a drop in its shares. Despite everything, this situation has jeopardized Nikola’s alliance with General Motors, with whom he was to produce the Badger electric pick-up jointly.