Celebrity Beauty: Nikola: How to Parlay an Ocean of Lies into a Partnership with GM

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Celebrity Beauty: Nikola: How to Parlay an Ocean of Lies into a Partnership with GM

Celebrity Beauty:

Celebrity Beauty: (NASDAQ:NKLA)

  • At the present time, we propose why we judge Nikola is an intricate fraud built on dozens of lies over the course of its Founder and Government Chairman Trevor Milton’s occupation.
  • Now we grasp got gathered intensive evidence—at the side of recorded phone calls, textual teach material messages, non-public emails and at the wait on of-the-scenes shots—detailing dozens of fraudulent statements by Nikola Founder Trevor Milton. Now we grasp got never viewed this stage of deception at a public firm, especially of this dimension.
  • Trevor has managed to parlay these fraudulent statements revamped the course of a decade valid into a ~$20 billion public firm. He has inked partnerships with about a of the tip auto companies on this planet, all desirous to utilize as a lot as Tesla and to harness the EV wave.
  • We glance how Nikola received its early commence up and video display how Trevor misled companions into signing agreements by falsely claiming to grasp intensive proprietary know-how.
  • We propose how, in the face of rising skepticism over the functionality of its truck, Nikola staged a video known as “Nikola One in Motion” which confirmed the semi-truck cruising on a avenue at a high fee of velocity. Our investigation of the positioning and textual teach material messages from a former employee verbalize that the video used to be an clarify ruse—Nikola had the truck towed to the tip of a hill on a a long way off stretch of avenue and merely filmed it rolling down the hill.
  • In October 2019, Nikola launched it would revolutionize the battery commercial. This used to be to be executed through a pending acquisition, however the deal fell through when Nikola realized (a) the know-how used to be vaporware and (b) the President of the battery firm had been indicted months earlier over allegations that he conned NASA by the usage of his expense legend to accumulate a immense sequence of prostitutes.
  • Nikola has never walked wait on claims relating to to its battery know-how. As a substitute, Trevor continued to publicly hype the know-how even after changing into responsive to the above components. The innovative battery know-how never existed – now, Nikola plans to employ GM’s battery know-how as a substitute.
  • A spokesman for Volvo creep-off Powercell AB, a hydrogen gasoline cell know-how firm that formerly partnered with Nikola, known as Nikola’s battery and hydrogen gasoline cell claims “hot air”.
  • Moreover to now the usage of GM’s battery know-how, Nikola seeks to employ the automaker’s manufacturing and gasoline cell capabilities. Nikola appears to be bringing nothing to the partnership however belief designs, their designate name and as a lot as $700 million they’re going to be paying GM for costs connected to manufacturing.
  • More cost effective hydrogen is key to the success of Nikola’s commercial model. Trevor has claimed in a presentation to a form of of americans and in extra than one interviews to grasp succeeded at reducing the associated fee of hydrogen by ~81% compared to peers and to already be producing hydrogen. Nikola has no longer produced hydrogen at this tag or at any tag as he later admitted when pressed by media.
  • Trevor has appointed his brother, Travis, as “Director of Hydrogen Manufacturing/Infrastructure” to supervise this serious phase of the commercial. Travis’s prior ride appears to be like to be to grasp largely consisted of pouring concrete driveways and doing subcontractor work on dwelling renovations in Hawaii.
  • Claims of owning vitality producing property is no longer fresh for Nikola. Trevor claimed that Nikola’s headquarters has 3.5 megawatts of yelp voltaic panels on its roof producing vitality. Aerial photos of the roof and later media reports video display that the supposed panels don’t exist.
  • At one point Nikola claimed to appreciate its appreciate pure gas wells. There could be now not any evidence in firm filings to present a clutch to this. The claims had been sooner or later quietly eradicated from Nikola’s internet region.
  • Trevor claims Nikola designs all key parts in residence, however they appear to merely be attempting to search out or licensing them from third-parties. One instance: we found that Nikola essentially buys inverters from a firm known as Cascadia. In a video exhibiting off its “in-residence” inverters, Nikola hid the Cascadia stamp with a a part of covering tape.
  • In a July 2020 podcast, Trevor said of Nikola’s “Tre” truck: “Now we grasp got five of them coming off the assembly line valid kind now in Ulm Germany.” A spokesperson for Bosch, the manufacturing accomplice building the trucks, confirmed this month that they haven’t made any trucks but.
  • The firm’s Nikola One “verbalize” used to be a total farce. We corroborate Bloomberg’s earlier work debunking Trevor’s claims concerning its semi-truck that “this thing fully capabilities and works…this is a real truck” and provide fresh evidence.
  • We fresh at the wait on of-the-scenes photos exhibiting that Nikola had an electrical energy cable snaked up from beneath the stage into the truck so as to falsely claim the Nikola One’s electrical methods fully functioned.
  • We realized through emails and interviews with former companions that Trevor had an artist stencil “H2” and “Zero Emission Hydrogen Electric” on the aspect of the Nikola One despite it having no hydrogen capabilities in any map; it used to be built with pure gas parts.
  • We additionally fresh evidence that subsequent “unearths” had been fictitious. In 2019, Nikola printed a “subsequent know-how” version of its off-avenue automobile. We realized that it used to be scrapped interior weeks of the unveiling attributable to manufacturing challenges. The redesign work used to be then quietly outsourced.
  • Nikola’s remarkable-touted multi-billion buck insist e book is stuffed with fluff. U.S. Xpress reportedly accounts for a third of its reservations, representing ~$3.5 billion in orders. U.S. Xpress had handiest $1.3 million in cash readily on hand final quarter.
  • Nikola’s key companions and backers had been cashing out aggressively. Worthington, Bosch and ValueAct grasp all supplied shares. Worthington supplied $237 million shares over a 2-day span in July and another $250 million in August. We deem they know exactly what form of firm Nikola is, and we effect a question to that as Nikola’s GM “partnership” boosts the inventory tag, key holders will proceed to exit.
  • We deem Trevor Milton, through dozens of outright lies, used to be in a position to effect partnerships with about a of the wonderful legacy auto companies on this planet of their desperation to utilize as a lot as Tesla’s EV management space.
  • Trevor has ensured he’s no longer going down with the ship.  He cashed out $70 million around the IPO and amended his fragment lock-up from 1-year to 180 days. If he is fired, his equity awards without lengthen vest and he is entitled to to find $20 million over two years. Milton has laid the groundwork to extract a form of of hundreds and hundreds from Nikola years sooner than ever delivering on his guarantees.
  • As soon as in some time a yarn comes round that exposes how exiguous the “specialists” in truth know. Theranos inked partnerships with Walgreens, Safeway, and Cleveland Sanatorium and staffed its board with luminaries. We deem Nikola’s companions did now not attain their homework.

Initial Disclosure: After intensive study, we grasp taken a immediate spot in shares of Nikola Corp. This yarn represents our opinion, and we support every reader to attain their very appreciate due diligence. Please stumble on our full disclaimer at the backside of the yarn.

Background: A Relentless Tesla Rally Forced Identical old Motors and Other Legacy Automakers to Care for Up

The underlying yarn for the electrical automobile market in 2020 has positively been Tesla’s relentless rally, which recently culminated in the firm being valued with a market cap of over $400 billion at its height—bigger than time-examined names esteem GM, Ford, Daimler and Fiat – combined.

Now not like Nikola, Tesla develops intensive proprietary know-how, which cuts many broken-down automakers and suppliers out of its image. The immense upward thrust in Tesla’s valuation has compelled other auto companies, esteem Identical old Motors, to liberate identical tag from the ongoing EV wave. In August 2020, analysts from Deutsche Bank and Morgan Stanley pressed Identical old Motors to creep off its electrical automobile commercial, declaring that the kind of jog dedicated to EV will possible be price “as a lot as $100 billion”.

“Nothing is off the desk,” GM CEO Mary Barra said at the time, appeasing analysts and winning a tag target boost from Morgan Stanley quickly thereafter.

Background: GM Temporarily Staves Off Stress From Analysts And Stakeholders By Coming into Into A Strategic Partnership with Nikola

On the morning of September 8, 2020, Nikola launched a strategic manufacturing partnership with Identical old Motors, sending shares of both companies sharply higher.

For many, the deal used to be considered as long-awaited validation for Nikola, which up to now has primarily supplied exiguous however prototypes, renderings and a heap of guarantees. As a minimum, Identical old Motors is without doubt one of many wonderful, multinational auto manufacturers on the planet and has been in commercial for over 100 years. It has attain into every most most necessary auto market, at the side of the U.S., Europe and China.

Economically, GM gets a $2 billion in inventory (an 11% stake) in Nikola for non-cash contributions honest like engineering and validating a truck for Nikola, $700 million in expense reimbursements, provide contracts and 80% of the EV credit, alongside with a host of ‘outs’. GM can commence up promoting shares sooner than a single truck rolls off the road. Genuinely, it’s a free call possibility in a “sexy” EV account for Identical old Motors.

Nonetheless why put with Nikola at all? GM’s CEO used to be asked on the day of the announcement what know-how GM would to find out of the deal. She couldn’t name a single thing.

The true “tag” for GM appears to be branding. We judge the legacy automaker merely seeks to latch Identical old Motors’ storied name onto Nikola’s charismatic Founder and Government Chairman, Trevor Milton. Trevor is perceived by many as a ahead-pondering, fresh, visionary entrepreneur in a position to rivaling Elon Musk’s charm.

Nonetheless in GM’s strive to utilize with Elon Musk, who did they honest valid to find into bed with?

Introduction: Who’s Trevor Milton?

“I never deceived anybody!”—Nikola Government Chairman Trevor Milton

What’s the distinction between a visionary promoting a courageous scrutinize of the long term and a con artist?

Tech founders are every so regularly accused of being overly rosy with their projections. Supporters credit such founders as having courageous, ahead-pondering plans whereas detractors accuse them of knowingly promoting unrealistic guarantees.

Whereas such debates amongst optimists and pessimists are current, most all americans can agree that there is a distinction between being overly optimistic about the long term and outright lying.

Credibility is mandatory for any administration personnel, however this is terribly valid of a firm esteem Nikola that has on the discipline of no income and no shippable product. Given Nikola’s market cap as of this writing, the firm is a ~$20 billion promise of what it would carry out in the shatter.

And Trevor Milton is as “key man” as it gets. Per Nikola’s filings:

“Mr. Milton is the source of many, if no longer most, of the guidelines and execution riding Nikola” [Pg. 45].

In Trevor’s submit-Q2 CNBC interview, he said he let Nikola’s CEO and CFO care for the earnings call because he “wished them to with out a doubt feel esteem they’ve a direct in the firm”. (Aug 5th CNBC, 3: 34)

What follows is a deep dive on the origins of Nikola Corp. and its founder Trevor Milton.  

What we found is that, for over a decade, as a substitute of establishing his appreciate capabilities, Trevor has established an unpleasant tune file of taking from others and claiming know-how as his appreciate. He has quietly former off-the-shelf merchandise from third-parties whereas loudly claiming to grasp remarkable proprietary know-how.

Trevor would then leverage what he had and heaps times deceive customers, companions, and traders so as to create his credibility and obtain his belief to the following stage.

This pattern of behavior continues to this exhibit day, now with billions of bucks on the road and with Nikola tied to about a of the wonderful auto companies on this planet.

Our work for this yarn alive to speaking with extra than one whistleblowers, commercial companions, and former workers as well to reviewing intensive internal documentation from Trevor’s ventures leading as a lot as Nikola, at the side of emails, textual teach material messages, recorded conversations and at the wait on of-the-scenes shots.

In accordance to our findings, we judge Nikola is an intricate fraud built on dozens of lies over the course of its founder Trevor Milton’s occupation, which he has parlayed valid into a $20 billion cloud of smoke and partnerships with about a of the tip auto companies on this planet.

Celebrity Beauty: Piece I: Trevor Milton’s Career Path Main Up to Nikola

November 2009: Trevor Milton Launches dHybrid, Inc. with a Accomplice, Kicking off his EV Trucking Lunge. It Resulted in Litigation With Allegations of Misappropriation and Faux Guarantees

After falling by the wayside of faculty, Trevor Milton started an fear gross sales firm in Utah known as St. George Security and Wretchedness. He sooner or later exited the commercial for $300,000. Our interview with its buyer indicated that Trevor overpromised, leading to a total loss for the initial acquirer. We additionally interviewed Trevor’s “50/50” commercial accomplice who indicated he used to be led to guage the exit used to be remarkable smaller, asserting he in the shatter received handiest $100,000 for his “50%”.

Following the concern commercial exit, Trevor launched a internet classified classified ads internet region that supplied former vehicles, known as uPillar.com, which sooner or later failed. (For added on both of these early companies, stumble on the Appendix at the terminate of this yarn.)

Following these two early pursuits, Trevor’s initial foray into replacement vitality vehicles used to be a firm known as dHybrid, Inc. Trevor joined forces with an engineer named Mike Shrout who had developed compressed pure gas (CNG) conversion know-how for diesel engines. Shrout used to be to insist the technical ride to the finishing up whereas Trevor would insist his commercial ride.

It Received Off to a Correct Initiate: dHybrid Entered into Agreement with Important Trucking Firm Swift to Convert Up to 800 Vehicles, a Contract Valued at $16 Million

Rapidly after launching dHybrid, Trevor contacted Jerry Moyes, CEO of Swift Transportation to market dHybrid’s conversion know-how, primarily primarily based fully on a source conscious of the firm. The personnel demonstrated the know-how on a transformed pickup truck to Moyes at Swift’s Phoenix facility.

Moyes used to be interestingly impressed with the demo and Swift sooner or later signed a fashion agreement, paying $2 million for a 9% stake in dHybrid, as well to extending a $322,000 mortgage to the firm. The agreement, which we located through litigation files, known as for the conversion of an initial 10 trucks for discovering out with a dedication to alter into 800 trucks thereafter.

Swift Later Sued, Alleging the Firm Delivered Handiest 5 Vehicles That Didn’t Work and That dHybrid’s Officers Misappropriated Capital for Inner most Exercise

The deal without lengthen hit roadblocks, as dHybrid did now not insist on its agreement. Swift filed a lawsuit in mid-2012. A subsequent amended criticism alleged that handiest 5 trucks had been delivered as a substitute of the promised 10, that the performance of the trucks didn’t to stay as a lot as the initial guarantees, and that capital had been misappropriated by dHybrid’s officers.

Celebrity Beauty: http://hindenburgresearch.com/

Within the Lead-Up to the Lawsuit, Trevor Reached out to New Traders Claiming the Swift Contract Used to be Value $250-$300 Million

Actuality: We Absorb the Contract. It Used to be Handiest $16 Million

As dHybrid’s $2 million in startup capital used to be working out, Trevor reached out to fresh traders, making courageous claims about the dimension of the Swift contract and the map successfully the know-how used to be performing.

This entails an electronic mail to Anthony Burns, the previous CEO of Ryder Techniques, proven below. Within the electronic mail, Trevor makes a total lot of claims that seem like outright fabrications, in response to litigation files and conversations with a former commercial accomplice:

  1. “Thus a long way we’re saving Swift 38% on their gasoline invoice.” At the time, the Swift files confirmed savings of no higher than 24%.
  2. “Now we grasp got logged over half 1,000,000 miles of files pulling 80,000 pound loads.” These numbers had been interestingly equally inflated.
  3. “Now we grasp got signed a $250 million buck plus contract with Swift”. The contract used to be handiest for $16 million, as per Swift’s lawsuit, and as corroborated by our source conscious of the agreement.
Celebrity Beauty: http://hindenburgresearch.com/

In another dHybrid investor presentation we reviewed, one walk cites the Swift contract as being $300 million, precipitated when EPA certification is achieved:

Celebrity Beauty: http://hindenburgresearch.com/

Nonetheless as soon as extra, per the Swift lawsuit, we stumble on clearly that the contract tag used to be handiest $16 million. [Pg. 10]

Celebrity Beauty: http://hindenburgresearch.com/

Following the Swift Litigation, dHybrid Sought a Buyout Nonetheless the Deal Resulted in Extra Litigation, With the Buyer Alleging dHybrid Made A immense sequence of Misrepresentations About its Capabilities

In dire financial straits, Trevor sought to barter a buyout with a firm known as Sustainable Vitality Neighborhood LLC (“sPower”) primarily primarily based fully in Salt Lake City, Utah.

The parties entered into negotiations and signed a term sheet in Might presumably well also merely 2012, however handiest one month later in June, sPower exercised the termination clause and backed out of the agreement citing most necessary misrepresentations throughout their due diligence course of.

Rapidly after, when dHybrid disputed sPower’s findings, sPower filed a lawsuit alleging:

  1. dHybrid had no longer, as represented, achieved fashion of the dHybrid System.
  • dHybrid had no longer begun the EPA certification course of as dHybrid had claimed.
  • dHybrid had been mispresenting results received from the five Swift diesel semi-trucks that had been the usage of the dHybrid System.  Particularly, sPower realized that dHybrid materially misrepresented the gasoline-blend ratios achieved by these diesel trucks.
  • dHybrid had falsely represented the gasoline-fee savings achieved by Swift because the usage of the dHybrid System. 
  • dHybrid used to be regularly having misfortune deciphering files it received from Swift’s drivers. Fairly than look clarification or map extra detailed take a look at runs with the dHybrid Techniques, dHybrid elected to beget in the gaps in the files with assumptions it created. 

2012: Trevor Pitched Traders on His Team, Together with an Experienced CTO—Nonetheless the Named Particular person Used to be Never dHybrid’s CTO

Within the Spring of 2012, with dHybrid beneath strain to clutch extra capital, Trevor ready a presentation for the Park City Angels, a finishing up capital personnel in Salt Lake City. In that presentation, Trevor falsely claimed that the firm had an skilled Chief Abilities Officer.

The presentation, which we reviewed, features a walk itemizing dHybrid’s administration personnel. The CTO is the handiest particular person in the personnel identified by his initials: “S.S.” in need to his full name.

The CTO’s employment and tutorial background, nonetheless, at the side of a MS stage from the College of Michigan and work ride at Identical old Motors and Parker Hannifin, matched that of dHybrid contractor Steve Scott.

Celebrity Beauty: http://hindenburgresearch.com/

An particular person conscious of dHybrid’s operations said that Scott never held the spot of CTO. He had handiest labored on heaps of proof-of-belief initiatives for dHybrid as an originate air consultant.

2012: With dHybrid Mired in Litigation, Trevor Started a New Firm Alongside with his Dad, Picking a Very Identical Name, dHybrid Techniques

Trevor Then Falsely Claimed to Doable Partners That ‘dHybrid’ Had Been in Operation for Years

With dHybrid mired in litigation and a suspended narrate of existence, Trevor and his father Bill Milton launched dHybrid Techniques, LLC in October 2012. The fresh firm immediate resumed its specialise in CNG fueling methods excluding Trevor and his father now owned the entity, leaving Trevor’s former companions with nothing.

With the identical name of dHybrid Techniques, Trevor used to be in a position to recommend to searching for what you offer, companions and traders that the fresh firm used to be a continuation of dHybrid and its years of ride and achievements.

We reviewed an instance of such marketing and marketing and marketing supplies that falsely urged dHybrid Techniques started in 2011, when in truth the entity had been fashioned in October 2012.

Celebrity Beauty: http://hindenburgresearch.com/

Here are the incorporation files for comparability:

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2014: dHybrid Techniques Used to be Then Received by Worthington—A Successful Exit…For Trevor

We Realized from a Damaged-down Worker (In a Recorded Name) That dHybrid Hid Doubtlessly Lethal Product Disorders from Worthington In Expose to Win the Deal Done

By 2014, Trevor had found a buyer for his fresh firm, industrial manufacturing heavyweight Worthington Industries (NYSE:WOR). Worthington paid $15.9 million for a 79.59% stake in the entity, valuing the total firm at $19.9 million. [Pg. 15]

Celebrity Beauty: http://hindenburgresearch.com/

In fresh interviews, Trevor has overstated the exit tag. In a 2019 interview with Vehicles.com, let’s insist, he claimed that his $15.9 million exit used to be for “remarkable bigger than $20 million”.

Celebrity Beauty: http://hindenburgresearch.com/

Getting wait on to the deal at the time, it appears Trevor overpromised on the capabilities of the know-how and its effectiveness in the sphere.

In recorded conversations, former workers of dHybrid Techniques admitted to traversing the country in a excited trot to patch up dHybrid’s broken methods as very most life like possible, concealing the components from Worthington so as that the deal could maybe well well also stop. Per the dialog [click for audio]:

  • “I helped map and create and fix all these repairs that Worthington didn’t study about. Nonetheless I was in the sphere making repairs so as that they wouldn’t obtain out about it.”
  • “These wait on-of-cab models had been essentially falling off of the trash trucks, esteem, breaking off. They had been shearing the rattling frickin’ frames and then coming off, esteem nearly friggin’ causing deaths.”
  • I was the fellow in the sphere guaranteeing (Worthington) didn’t obtain out. If they had realized that can per chance well grasp ruined the deal.”

The firm in query used to be Spoil Pro. Here is a image of one of its trucks transformed for CNG from dHybrid.

Celebrity Beauty: http://hindenburgresearch.com/

The employ of Worthington’s Credibility, Trevor Then It appears Made Faux Claims About Nikola’s “Proprietary” Abilities in Expose to Induce Partners to Work with Him

In accordance with former workers of EVDrive, they signed with Trevor primarily primarily based fully no longer handiest on his supposed management role at Worthington however additionally on a perception that Nikola (named Bluegentech at the time) had evolved proprietary turbine know-how that can per chance well fabricate for a valid kind fit with their very appreciate know-how.

Trevor represented that he had proprietary turbine know-how in a contract signed with EVDrive in Might presumably well also merely 2015, which we’ve procured a duplicate of:

Celebrity Beauty: http://hindenburgresearch.com/

The agreement reiterated that the turbine used to be “Bluegentech’s proprietary turbine system”.

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Nonetheless that appears to had been fraudulent as successfully. Two months after Bluegentech represented to EVDrive that it owned proprietary turbine know-how, Trevor’s entity used to be in negotiations with another firm known as Brayton Vitality to remove their generators. As soon as all as soon as more, we grasp the electronic mail file to video display this.

The turbine purchases had been said to be on behalf of Worthington, which Trevor used to be working with at the time:

Celebrity Beauty: http://hindenburgresearch.com/

Trevor leveraged his Worthington role, as well to claims of having proprietary know-how to map companions that can per chance well well also collectively wait on part together parts wanted for Nikola’s first EV truck.

As we are in a position to video display later, the claims of having “proprietary” know-how that’s de facto any individual else’s product seem like an ongoing phenomenon with Trevor to this very day.

December 2015: Worthington Promptly Wrote Down the Value of dHybrid Resources

About a year after the deal, Worthington identified issues with the dHybrid Techniques acquisition and recorded a $2.3 million impairment connected to the acquisition in Q4 2015. [Pg. 53] The firm extra recorded a $1.5 million warranty-connected expense relating to to dHybrid in 2016. [Pg. 3]

As we detail in the Appendix to this yarn, Worthington had a deep relationship with Nikola, which it now appears to be attempting to downplay and distance itself from. At one point, Nikola used to be a subsidiary of Worthington and the stop relationship gave Trevor adequate credibility to cobble together a total lot of early partnerships.

Celebrity Beauty: Piece II: Nikola

2016: After Cobbling Together Truck Parts with Deceptively Constructed Partnership Agreements, Nikola Launched it Would Revolutionize Transportation

Bluegentech then became Nikola, and Trevor continued to line up supplier deals in an strive to to find the pieces together to assemble the firm’s first truck with third-event parts.

In accordance with former workers and companions engaged on the Nikola One, the firm’s first proposed semi-truck, growth used to be gradual. On the other hand on Might presumably well also merely 9th 2016, Nikola came out of ‘stealth mode’, announcing that it had developed a product that can per chance well revolutionize the sphere of transportation.

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The click open vowed to unveil the Nikola One in December, committing the firm to an aggressive decrease-off date.

December 2016: The Giant Nikola One Inform their non-public praises —“This Truck is By Far the Most Enlighten of The Artwork Truck Ever Constructed in Historic previous…This Factor Entirely Capabilities and Works…That is a Loyal Truck—That is Now not a Pusher”

Actuality: It Used to be Now not A Loyal Truck And Used to be, In Truth, A Pusher

By the terminate of the year, Nikola used to be poised to verbalize its innovative fresh truck, the Nikola One. Within the months leading as a lot as the presentation, an particular person asked Nikola whether the truck would be a “map unveiling or a functional prototype”. Nikola confirmed that it’d be a “functioning” and “fully built truck at match”.

Celebrity Beauty: http://hindenburgresearch.com/

At extra than one parts throughout a video recording of Trevor’s presentation at the open match on December 1, 2016, Trevor is also heard making it crystal determined that the Nikola One used to be a fully functioning truck:

At the 17: 30 stamp:

“You’ll stumble on it up on the monitors–they’re fully functioning monitors. In point of fact unbelievable. We can grasp a chain on the seats to prevent folks from coming in only for the protection. I don’t need any individual to terminate up doing one thing and riding this truck off the stage…so we’re going to strive to retain folks from riding off. Nonetheless this thing fully capabilities and works, which is de facto unbelievable.”

Trevor then closed the presentation by insisting thrice that the truck used to be real, at the 39: 00 stamp:

For every doubter available that said there’s no come this is correct. How can that be possible? We’ve executed it. It’s my pleasure to with out a doubt enable you to guys revel in the evening, stumble on the truck, perceive it’s real, touch it, in truth feel how sturdy it is. You’re going to peek that this is a real truck. That is no longer a pusher. Thank you so remarkable all americans!”

For anybody uncertain what a “pusher” is, Trevor essentially clarified in another video at the match and all as soon as more reiterated that the truck used to be fully functioning and total in response to an interviewer’s query:

Q: “So how long grasp you ever been engaged on this because this is a fully functioning truck valid kind?

Trevor: “Yeah”

Q: “So how long grasp you ever guys been engaged on this?

Trevor: “Years in secrecy. It’s been very worthy. One of the significant crucial folks realized about us over the final 4 or 5 months as we launched in the lead-as a lot as this enormous match, however it took years and years to to find right here. This isn’t honest valid a pusher esteem a form of vehicles that they unveil [that] are honest valid vehicles that don’t essentially characteristic. That is a fully functional automobile which is de facto unbelievable. That probabilities are you’ll struggle through. We are in a position to trade out regardless of they need, the total temperatures. I imply this is a fully functioning automobile; it’s no longer only valid a pusher. That’s what they call [it] in the automotive world; they honest valid push and it doesn’t jog.”

It appears to be like it used to be a pusher.

Bloomberg Later Known That the Truck Used to be NOT Achieved.

Trevor Answered by Admitting This, Then Claimed He NEVER Acknowledged it Used to be Achieved (Despite Video Clearly Contradicting Him).

He Then Threatened to Sue Bloomberg

In June of this year, Bloomberg published a part highlighting that, opposite to Trevor’s claims, the truck used to be no longer total and used to be lacking parts.

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In response, Trevor blasted the reporter on Twitter and without lengthen vowed to sue, claiming that all americans knew the truck wasn’t operable and that the parts had been sitting valid kind on the desk in entrance of the viewers customarily:

Celebrity Beauty: http://hindenburgresearch.com/

It used to be a courageous respond. Nonetheless it used to be fully invalidated by Trevor’s appreciate words – extra than one times – at the side of on video at the match and in Tweets leading as a lot as it.

Within the video of the match, we noticed no such desk with truck gears and parts clearly visible to all. As a substitute, the seating went valid kind as a lot as the stage excluding for a miniature desk with a pc computer screen up entrance:

[Click here to see video of Trevor’s repeated false statements]

Celebrity Beauty: http://hindenburgresearch.com/

In either case—if there used to be a desk with gears (somewhere), we fail to peek how that in any come corrects Trevor’s repeated fraudulent claims throughout the presentation that the truck used to be fully functional.

Bloomberg Used to be Factual. The Inform their non-public praises Used to be a Farce. Extra Proof Corroborates the Bloomberg Portion and Furthers Their Allegations

Now we grasp got at the wait on of-the-scenes photos and other evidence exhibiting honest valid how incomplete the Nikola One used to be at the time of the 2016 verbalize.

In gradual August, honest valid 3 months sooner than the video display, Nikola’s “truck” consisted largely of frame rails with wheels mounted to its Meritor suspension.

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(Provide: Particular person that labored on the Nikola One “Truck” in Leisurely August 2016)

Other parts had no longer but arrived, at the side of the e-axles, the turbine, the pure gas fueling system, and the body — primarily primarily based fully on a source who labored on the job. The factory used to be no longer even space up for manufacturing. Personnel had been working to the hardware retailer to clutch up classic parts, primarily primarily based fully on the source.

August 2016 (4 Months Before the Inform their non-public praises): Nikola Claimed to Absorb Engineered “The Holy Grail” Of Hydrogen Abilities For Trucking, Despite No Apparent Proof it Had Even Begun Pattern

Amidst all this, the firm deserted its supposedly innovative compressed pure gas (CNG) know-how with out a clarification. Within the origin of August, Nikola launched that it had pivoted from a (CNG) turbine differ extender to a hydrogen gasoline cell differ extender.

The click open claimed that the know-how had already been engineered efficiently.

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The press open boasted that this fulfillment used to be the holy grail of trucking:

Nikola has engineered the holy grail of the trucking commercial. We are no longer responsive to any zero emission truck on this planet that can per chance well haul 80,000 kilos bigger than 1,000 miles and accomplish it without stopping. The Nikola One requires handiest 15 minutes of downtime sooner than heading out for the following 1,000 miles.”

Despite these claims, there used to be no in-residence hydrogen capabilities and no hydrogen companions had been precipitated board, primarily primarily based fully on former companions working in the lead-as a lot as the video display. The announcement used to be a shock to even these alive to with the firm, primarily primarily based fully on our sources.

In Might presumably well also merely 2016, 3 months sooner than the hydrogen “pivot”, the firm launched it had begun taking reservations for the pure-gas-powered Nikola One, which it claimed to grasp already “engineered, developed, and is finalizing assembly.” It even promised purchasers free compressed pure gas gasoline.

Celebrity Beauty: http://hindenburgresearch.com/

Lower than two weeks sooner than the announcement that Nikola had engineered a innovative hydrogen resolution, the Nikola Twitter legend reinforced that its focus used to be level-headed on CNG (compressed pure gas), no longer hydrogen. “CNG is the come to head” it said:

Celebrity Beauty: http://hindenburgresearch.com/

Months earlier Trevor had boasted in public interviews of its pure gas capabilities, declaring:

“Our know-how is 10-15 years sooner than another OEM in gasoline efficiencies, MPG and emissions”

It is unclear why Nikola decided to without warning abandon its supposed 10-15 year relieve in pure gas.

But despite the “pivot” to hydrogen, the prototype being built continued to be interested by pure gas, primarily primarily based fully on these alive to. The truck supplied at the video display had pure gas generators effect in, primarily primarily based fully on our sources.

Trevor Had “H2” Stenciled on the Truck Despite the Truck It appears Having Zero Hydrogen Capabilities

As it appears to be like, building a zero-emission hydrogen truck could maybe be very complex. On the other hand, merely stenciling “H2” and “Zero Emission Hydrogen Electric” on the aspect of a non-functioning truck is remarkable more uncomplicated.

Trevor had H2 stenciled on the aspect of the Nikola One despite the actuality that the Nikola One contained a turbine designed for pure gas and fully zero hydrogen know-how in any map, primarily primarily based fully on our sources.

A video of the match exhibiting the stencil-work is also viewed right here:

Celebrity Beauty: http://hindenburgresearch.com/
Celebrity Beauty: http://hindenburgresearch.com/

By November, one month sooner than the video display, a personnel from Brayton arrived with pure gas generators, primarily primarily based fully on sources pondering about the preparation. Since the generators would be deep in the truck tucked in opposition to the battery, no one would have the chance to be stumble on that there used to be no generator plugged into it and that it didn’t, in truth, bustle on hydrogen. The fueling system used to be pure gas handiest.

“Win Exposed Wiring Taking a stare as Nice as It Can”: Emails Make Apparent the Closing-Minute Dawdle to Make the Nikola One See as Correct as Conceivable in the Weeks Main Up to the Inform their non-public praises

As the video display received closer, ambitions had been diminished, and it used to be resolute that all americans wished to honest valid fabricate things stare as valid kind as possible for the presentation. Now we grasp got reviewed emails that corroborate this, instructing workers to “to find exposed wiring having a stare as nice as it would” and other final-minute touch-ups:

Celebrity Beauty: http://hindenburgresearch.com/

Most the total lot wanted to be effect in sooner than the body arrived, so things had been effect in and buttoned up as well to they’re going to be. The e-axles had been effect in without motor cores or gears and had been effect in empty on the “truck” by mid-November.

The body arrived in gradual November, and the personnel from N2A Motors, which makes customized automobile our bodies, received it effect in on Thanksgiving. This used to be roughly per week sooner than the video display and honest valid days sooner than the truck wanted to be pulled onto the stage, which used to be being built on the other aspect of the factory.

Celebrity Beauty: http://hindenburgresearch.com/

As soon as the truck used to be winched up onto the stage, an artist stenciled “US Xpress” onto the cab and “H2” prominently on heaps of parts of the automobile.

The Truck Might presumably well also Now not Vitality Itself, Let Alone Force, So an Electric Cable Used to be Snaked up Through the Stage.

Trevor: The Truck is “Entirely Functioning”

In accordance with a source who labored on the finishing up, and as is visible on this photo, a cable used to be snaked up from beneath the stage through the bottom of the cab to energy the cabin monitors.

Celebrity Beauty: http://hindenburgresearch.com/

Moreover, mockups of the infotainment pages had been loaded onto the in-cabin shows.

In an strive to underscore the functionality of the truck, Trevor effect the specialise in the handiest phase of it that used to be grew to alter into on–the monitors that had been powered by the cable beneath the stage. Nonetheless the monitors, which had been loaded the day sooner than with largely static webpages, primarily primarily based fully on our source, had been reluctant to answer his efforts.

Celebrity Beauty: http://hindenburgresearch.com/

The statements made by Trevor don’t strike us as optimistic “ahead having a stare” statements. They weren’t exaggerations. They had been merely bald-confronted lies.

In January 2017, following the match, the firm raised capital as phase of its Sequence A round. [Pg. F-26] It additionally signed partnerships in the months to arrive with companies esteem most most necessary automotive supplier Bosch as well to gasoline cell and hydrogen companions.

Presumably, the misleading representations made at the match helped gasoline these fresh deals. Subsequently, CNH World jumped in with both an funding and agreement to wait on in the manufacturing.

Following the Inform their non-public praises, The Firm Abandoned Pattern of the Nikola One, In accordance with Text Messages from a Damaged-down Worker, Having It appears Already Served its Motive to Appeal to Credible Partners and Funding Capital

To the shock of americans pondering about the Nikola One finishing up, fashion work on the truck did now not proceed after the video display.

It appears the prototype had already served its motive: giving the firm the legitimacy it wanted to clutch extra funding and courtroom higher companions that is presumably in a position to create them an accurate working model from commence as a lot as enact.

It used to be no longer even handed mandatory to with out a doubt wait on up the fraudulent claims that had been made on the stage. Under is a textual teach material change with a former employee who corroborated this (in crimson).

Celebrity Beauty: http://hindenburgresearch.com/
(Provide: Text dialog with former employee. Redacted miniature parts to present protection to identity of sources.)

2018: In Expose to Continue the Appearance of Growth, Nikola Posted a YouTube Video of Its Nikola One “In Motion” on the Road.

Text Messages from a Damaged-down Worker Inform their non-public praises the Truck Used to be Simply Filmed Rolling Down a Giant Hill.  

As time handed and the hype from the December 2016 video display broken-down with out a most most necessary updates, skepticism started to mount about the Nikola One.

As proven above, no plans had been in spot to enact fashion of the Nikola One. Bosch, which had partnered with Nikola following the video display, used to be level-headed rather a whereas faraway from delivering working prototypes of Nikola’s subsequent fashion.

To unravel this ‘hype hole’, Nikola teased a tweet on October 6th 2017 about an upcoming video:

Celebrity Beauty: http://hindenburgresearch.com/

The first video, which used to be at final released in January, used to be for most most necessary auto parts producer Phillips, and confirmed a immediate clip of the Nikola One easing to a end put.

Nonetheless the most most necessary match used to be another video, entitled “Nikola One in Motion” released the following day on Nikola’s company YouTube legend and promoted on social media, garnering 230,000 views on Facebook on my own. This video appeared to video display the truck riding on a stage avenue at a high fee of velocity.

Celebrity Beauty: http://hindenburgresearch.com/

The video generated a enormous amount of buzz and pleasure about the pre-manufacturing models to be released the following year (which never took spot).

Nonetheless primarily primarily based fully on a former employee who spoke with Nikola Chief Engineer Kevin Lynk, the video used to be merely the outcome of Nikola towing the truck to the tip of a hill and rolling it down.

Celebrity Beauty: http://hindenburgresearch.com/
(Text messages with former employee. Inform their non-public praises puny redactions to present protection to source identity)

The deception pondering about the manufacturing of this video appears to had been clarify. The firm scouted a a long way off a part of avenue on the Mormon Hasten honest valid to the south of Grantsville, Utah, which we grasp since located.

This a part of avenue is lightly former and aspects a 2-mile-long completely straight stretch with a fixed 3 p.c grade–hundreds of dimension and adequate of a slope to to find a motorless truck rolling.

There had been no aspects in the shot that can per chance well betray the slope, so the digicam will possible be positioned at an attitude that can per chance well fabricate the avenue seem moderately stage, or infrequently, even uphill:

Celebrity Beauty: http://hindenburgresearch.com/

We Rolled A Automobile in Neutral Down the Identical Hill. We Reached a Top Flee of 56mph and Rolled for ~2.1 Miles

An investigator sent to the explicit region former by Nikola for their video examined the hill in an SUV by parking the automobile at the tip, then rolling from neutral. He used to be in a position to hit a high velocity of 56 mph and rolled for roughly 2.1 miles.

Celebrity Beauty: http://hindenburgresearch.com/
(Pictured: Investigator automobile parked at the tip of the hill [license plate redacted] and rolling down the hill)

The Media Took the Bait, Calling it ‘Road Testing’. Nikola Then Featured the Video for Arizona Governor Doug Ducey When Asserting Its New Manufacturing Facility

Ducey: “That is a HUGE Announcement”

Although the firm didn’t namely insist the truck used to be inviting beneath its appreciate energy, it used to be the determined implication. And the video had the specified results, with commercial publications describing the footage as ‘avenue discovering out’:

Celebrity Beauty: http://hindenburgresearch.com/

One more article described the truck as “cruising” when it used to be, in truth, honest valid rolling down a hill.

The next week, Nikola held a ceremony to rejoice its deal to open a manufacturing facility in Arizona, that includes the “Nikola One In Motion” video at the ceremony.

Straight after taking part in the video for the viewers, Arizona governor Doug Ducey exclaimed:

“At the present time, I’m proud to bid, that Nikola Motor Firm, is coming to Arizona. That is a HUGE announcement! That is a producing headquarters of hydrogen electrical semi-trucks that will possible be inviting to our narrate.”

April 2019: Nikola “Unveiled” a Subsequent Generation Model of NZT Off-Road Automobile

The Develop Used to be Quietly Scrapped Within Weeks of the Unveiling Attributable to Manufacturing Challenges

At the 2019 Nikola World match, Trevor launched the firm’s luxurious version of its off-avenue automobile, the NZT. In a video of the match, Trevor is also viewed praising the work that had long gone into the map. He described how the automobile used to be “fully enclosed,” supplied “luxurious” map, and had “full HVAC, heating and aircon, the most necessary one of its kind available in the market.”

Celebrity Beauty: http://hindenburgresearch.com/

At the 22: 22 stamp Trevor gushed over the engineering:

“After we unveil this, pay stop consideration to the workmanship. The internal, the originate air. It rivals about a of doubtlessly the simplest automotive engineering on this planet. That is on an off-avenue automobile. That is a 2nd that folk from around the sector had been ready for.”

Curiously, the fresh know-how closed cabin version of the automobile used to be vastly heaps of from the originate cabin version, which used to be space up on a tune at the match for take a look at drives. A video from the positioning confirmed the originate version:

Celebrity Beauty: http://hindenburgresearch.com/

Genuinely, the closed cabin version used to be handiest a “mock up,” and lacked about a of the plush aspects Trevor described on stage, honest just like the A/C, which could maybe well well no longer be accommodated at the wait on of the dashboard, primarily primarily based fully on a former employee.

Within weeks of the match, Nikola administration scrapped the map for the NZT for the reason that model used to be no longer manufacturable as visualized on stage, primarily primarily based fully on the previous employee.

The firm now confronted “a broad redesign” sooner than it could maybe per chance well well also insist the NZT to market, they said.

Despite customarily claiming to create nearly the total lot in-residence, Nikola quietly outsourced the NZT redesign to a miniature firm known as Stellar Approach LLC. Stellar is staffed by former executives of Polaris, a infamous producer of off-avenue vehicles who had suggested Nikola on the originate cabin version.

April 2019: Trevor Claimed on Video That Nikola’s Headquarters Used to be Entirely Off the Grid, with 3.5 Megawatts of Represent voltaic Installed on Its Roof

Actuality: There Were No Represent voltaic Panels. The Lack of Panels Is Corroborated by Native Media and Subsequent Pictures

Trevor has claimed that Nikola has an off-the-grid headquarters with 3.5 megawatts of yelp voltaic on its roof, a tidy installation. In an April 2019 pitch, let’s insist, at the 10: 03 stamp, he states:

“Now we grasp got the handiest off-grid headquarters that all americans knows of, fully off of hydrogen, battery, and movie voltaic. Now we grasp got 3.5 megawatts of yelp voltaic up on the roof producing about 18 megawatts of vitality a day in our headquarters, and we’re storing 10,000 kilograms of hydrogen and the usage of gasoline cells as vitality backup and batteries as vitality sources as successfully. Our firm is basically one of doubtlessly the most revolutionary companies on this planet!”

Despite this claim, a piece of writing in June 2019 in BizJournals said that the firm had but to install any yelp voltaic panels on its roof.

We pulled satellite photos of Nikola’s headquarters (4141 E Broadway Road Phoenix, AZ) from Google Earth Pro and located that every subsequent overhead views (dated August 2019 and January 2020) confirmed no put of yelp voltaic panels on the roof either:

Celebrity Beauty: http://hindenburgresearch.com/
Celebrity Beauty: http://hindenburgresearch.com/

November 2019: Nikola Announces the Nikola Battery “Prototype Cell”, Calling It “Sport Changing Battery Abilities”

In gradual October 2019, Trevor started teasing on twitter that Nikola used to be going to trade the sector with an upcoming announcement that used to be bigger than anything else he had launched in the previous:

Celebrity Beauty: http://hindenburgresearch.com/

It will later change into determined that the above teaser tweet used to be issued 2 days sooner than the firm signed a Letter of Intent to assemble a battery know-how firm.

In mid-November, Trevor issued a total lot of extra tweets, generating pleasure and anticipation for the mystery verbalize:

Celebrity Beauty: http://hindenburgresearch.com/

At final, on November 19, 2019, the very day after Nikola started non-public negotiations to head public, [Pg. 81] Nikola launched that it had solved one of many very most life like challenges facing sustainable vitality; a high-density battery.

Celebrity Beauty: http://hindenburgresearch.com/

Nikola undoubtedly didn’t undersell the purported fulfillment:

That is the wonderful advancement we grasp viewed in the battery world,” said Trevor Milton, CEO, Nikola Motor Firm. “We are no longer talking about miniature enhancements; we’re talking about doubling your cell phone battery capacity. We are talking about doubling the differ of BEVs and hydrogen-electrical vehicles around the sector.”

Trevor continued to tout the battery know-how to his Twitter following, claiming he had viewed the cell map with his appreciate eyes, and promised a most most necessary demonstration at Nikola world 2020.

He estimated the price of the fresh know-how to be price a form of of billions. As we later realized, Nikola had signed a letter of intent to assemble the know-how for handiest $56.5 million, which could maybe well well grasp made this doubtlessly the most accretive acquisition in history:

Celebrity Beauty: http://hindenburgresearch.com/

As with previous claims, the general public representations differed vastly from the non-public actuality.

The battery announcement made reference to a letter of intent to assemble a battery firm, though it did now not name the firm or verbalize the letter. We found the name of the firm in litigation files.

Nikola Intended to Possess the Battery Tech, Nonetheless After the Big Announcement, Soon Realized it Used to be Vaporware.

Furthermore, Nikola Realized the President of the Battery Firm it Intended to Possess Had Been Indicted Months Earlier After The employ of His NASA Expense Myth to Rent A immense sequence of Prostitutes

In March 2020, Nikola sued the battery firm, named ZapGo Ltd., alleging fraud, fraudulent representations, and failure to insist that the President of ZapGo had been indicted months earlier for tax fraud.

Had anybody at Nikola merely Googled the President of ZapGo, Charles Resnick, they would grasp found that 6 months earlier Resnick made nationwide news for allegedly conning NASA through a map to employ his expense legend to hire a immense sequence of prostitutes. Resnick pled responsible in January 2020.

Celebrity Beauty: http://hindenburgresearch.com/

Nikola’s criticism in opposition to ZapGo describes how after entering valid into a Letter of Intent to assemble the firm, and after it had already invested $2.2 million into the firm, Nikola realized ZapGo’s claims had been extremely questionable.

The criticism additionally made determined that Nikola, through its VP of Abilities Pattern Jason Roycht, realized about the tax fraud discipline and fraudulent claims made by ZapGo as early as December 2019:

Celebrity Beauty: http://hindenburgresearch.com/

Despite Studying About the Disorders with the Battery Tech in December 2019, Trevor Used to be Composed Hyping the Tech in February 2020

Despite the components with ZapGo, Trevor didn’t stumble on any motive to end touting the battery know-how through his Twitter legend:

Celebrity Beauty: http://hindenburgresearch.com/

Nikola formally terminated the agreement on February 26, 2020 and appears to no longer grasp publicly mentioned the misfortune since. The November 19, 2019, Nikola press open has no longer been rescinded or corrected, and traders possible judge the “sport altering” battery know-how level-headed exists.

It never did.

Powercell AB Spokesman’s Feedback on Nikola’s Battery (And Hydrogen Gas Cell) Abilities: “Sizzling Air”

In 2017, Nikola signed a deal appointing Sweden’s Powercell AB as its most most necessary supplier of hydrogen gasoline cell stacks. Powercell used to be an investor creep-out from Volvo, one of many sector’s greatest truck and industrial automobile makers.

Bosch and Powercell had been finishing checks on Nikola’s behalf. Nonetheless in early April 2019, Powercell issued a commentary announcing it used to be ending its agreement with Nikola asserting the commercial phrases had been “fully unacceptable”.

Correct days later, Nikola accomplice Bosch unveiled a $56.5 million licensing deal, with extra royalties, with Powercell for its S3 gasoline cell stacks.

Referring to the breakdown of the care for Nikola after bigger than two years of checks, Powercell spokesman Marten Wikforss suggested us by phone from Sweden this month:

“As probabilities are you’ll per chance well repeat from the clicking open, the phrases we had been supplied for our cooperation with Nikola had been, as we said, unacceptable. So we communicated that and in response, they said ‘we’re out of the sport’”

“What they communicated when they said they weren’t going to employ our parts and gasoline cells used to be at the origin that they had been going to open their very appreciate gasoline cells and it’d be so remarkable better or regardless of. It used to be a form of hot air coming from them…Then you definately didn’t hear anything else from them. And then all of a surprising they had been going to open a fresh revolutionizing lithium-ion battery system too. And I haven’t heard anything else about their very appreciate gasoline cell system and I haven’t heard anything else about their innovative battery either.”

He said, nonetheless, that there had been no restrictions on Powercell’s licensing care for Bosch and that Bosch could maybe well well also provide batteries to Nikola though their verbalize deal had collapsed.

“We’re offering to Bosch and it’s as a lot as them if they must develop to companies esteem Nikola. We haven’t banned gross sales to move customers. They’re free to operate and sell their product.”

When Subsequently Pressed on the Battery Acquisition by Tesla Followers, Trevor Dodged the Ask Then Changed the Story Entirely

Now, an Unnamed College Is Supposedly Growing the Abilities

When skeptical Tesla followers visited Nikola in August of this year, Trevor had a dialog about battery cell know-how. First, he claimed to be engaged on cells that to find rid of all toxic supplies, asserting he’s been working with companies to insist the tech to market:

We’ve with out a doubt labored with some battery companies to insist (these) cells to market.

The questioner then asked:

“Is that this tied to that firm you received and launched earlier this year…?”

Trevor at the origin said he used to be working with “battery companies”, however when the Tesla fan brought up the deal for the firm that Trevor (however no longer the questioner) knew had failed, he then without warning changed course and said it used to be connected no longer to a firm, however to an unnamed college:

“No, it’s no longer essentially. It’s tied to a school that had developed the know-how. And we with out a doubt ended up licensing all of it and helping them fund it the total come through.”

Inform their non-public praises that Nikola does grasp a care for universities to create gasoline cells, however we found no indication that it has anything else to attain with battery cell know-how. We found no file of one of these licensing deal in its filings.

Following the dialogue of the unnamed college, Trevor then downplayed the doable for a leap forward, despite his old claims to grasp achieved the leap forward in November 2019:

“I hate cell fashion. Chance of success is esteem hitting the lottery, you realize? So, it’s very unlikely you’re gonna create a cell that’ll work. So, they did in truth valid kind work, they had confirmed that they had hundreds of cells that had been already being cycled that weren’t failing. So, we came in and we helped fund ‘em. We helped provide ‘em funding for instruments that they wanted. They furthered the come and now we’re going to be exhibiting off cells at Nikola World, we hope.

The dialog about universities establishing the battery tech took spot a mere two weeks up to now, however now, the firm has launched that this could maybe per chance well well be the usage of GM’s proprietary battery know-how.

We’re assured Nikola’s battery know-how merely never existed, but has now managed to trade that empty promise for GM’s accurate capabilities.

June 2020: After Years of Deception, Nikola Goes Public—A Huge Monetization Event That Added Billions of Dollars of Liquidity and Value from Unknowing Public Market Contributors

Nikola went public through a reverse merger on June 4th through a heaps of motive acquisition firm.

Shares of Nikola spiked, largely on the backs of retail investor euphoria. Many inexperienced traders had been discovering out about the firm for the most necessary time and, seeing a long checklist of impressive claims, believed that they had been entering into on the bottom ground of the following Tesla.

In a single day, Trevor became a multi-billionaire and a minor social media movie broad name. A host of reports articles came out evaluating him to Elon Musk.

Nonetheless Being Public Moreover Brought Criticism. Trevor Like a flash Becomes Obsessed on Brief Sellers, Severe Journalists, and Other “Haters”

We at Hindenburg obtain pleasure in reporting on companies that strive to silence criticism with intimidation. A functioning market requires diverging views and opinions to make sure that traders with a concept to manufacture told decisions.

We additionally judge that companies enticing in such practices are vastly extra more possible to grasp one thing to screen. In one fresh instance, MiMedx Neighborhood sued its critics, handiest to be charged criminally with fraud two years later.

Most public firm leaders specialise in establishing their merchandise and their commercial. Nonetheless upon going public, Trevor nearly without lengthen took to lashing out at immediate sellers and threatening journalists with litigation for writing serious articles:

Celebrity Beauty: http://hindenburgresearch.com/
Celebrity Beauty: http://hindenburgresearch.com/
Celebrity Beauty: http://hindenburgresearch.com/

2020: Trevor Claimed Nikola Produces Hydrogen for Below $3/kg, ~81% More cost effective Than the The leisure of The World, Representing a Important Leap forward

The high fee of hydrogen, amongst other components, has prevented it from changing valid into a mainstream gasoline source for replacement vitality vehicles. The high tag mark results from both the associated fee to isolate hydrogen and the associated fee of establishing manufacturing companies and products/transmission.

Low-fee hydrogen manufacturing is serious to Nikola’s financial viability, as Nikola’s hydrogen long haul truck gross sales would rely on a working network of hydrogen stations. Nikola’s remarkable anticipated gasoline cell pickup truck’s existence additionally hinges on a hydrogen put roll out.

As phase of its hydrogen approach, Nikola says it is planning on building 700 hydrogen stations all the map through the US, with extra plans to manufacture bigger worldwide.

Per the firm’s newest quarterly yarn:

This planned construction of hydrogen stations is vital to persuading customers to pay the next top fee for our trucks.” [Pg. 41]

To create these stations, Nikola launched in a June 2020 press open that it’d be procuring parts from Norway-primarily primarily based fully Nel ASA.

At Nikola World in December 2019 Trevor claimed on video to a tidy viewers to already be producing 1,000 kilograms of hydrogen a day on region at his Phoenix headquarters:

In The usa we’ve already received the wonderful hydrogen put in the western hemisphere at our headquarters. Can develop over 1,000 kilograms a day on region.”

Subsequent to Nikola world, Trevor reiterated in a total lot of public interviews to grasp already solved this most most necessary world discipline, describing Nikola as having achieved breakthroughs in hydrogen manufacturing.

In an August 2020 interview with Fox Change News, when asked about hydrogen, Trevor says:

“We noticed a possibility to insist the associated fee of hydrogen down going zero-emission and inserting it on parity with diesel, and it’s the most necessary time in history that’s been in a position to be executed, so it went from about $16/kg and we’re down now below $4/kg. And there’s a form of reasons for that, however the most most necessary one is standardization of a hydrogen put worldwide has allowed us to force that fee down dramatically. We repeat folks we’re an vitality know-how firm that occurs to create in truth frigid vehicles.”

In another interview on July 17, 2020, on the TeslaCharts podcast, Trevor claimed Nikola has been in a position to “prick the associated fee of hydrogen from $16/kg down to – we’re down below $3/kg on our hydrogen now.”[1] [11:34]. This could maybe stamp a fanciful 81.25% discount in the associated fee of hydrogen.

When challenged all as soon as more about Nikola’s hydrogen manufacturing fee by the TeslaCharts podcast host [25:00], Trevor repeats the query, compliments the host on asking the query, claims he has “so remarkable ride” with answering the query, says he “knows the stuff better than anybody he has ever encountered” and says he has spent “7 years” riding the associated fee of hydrogen down.

Nonetheless he then admits that many of the “adjustments” in the hydrogen world he has viewed are “no longer so remarkable on the know-how aspect” and that Nikola has “viewed per chance a 5% or 10% broaden in effectivity all the map through the board” in hydrogen know-how. Nonetheless that’s “no longer what adjustments the sector,” Trevor says.

After offering an account about his father, and offering another sidetrack dialogue, he then admits that Nikola’s total answer to bringing down the associated fee used to be to merely standardize a hydrogen put. “The standardization of the hydrogen put used to be the wonderful aspect,” Trevor says.

Such standardization would clearly insist costs down, however Nikola already claimed to grasp achieved the feat without having a single manufacturing facility of its appreciate.

When Pressed on the Field in July 2020, Trevor Acknowledged Nikola Produces No Hydrogen at All. The Claims Made at Nikola World and In Multiple Interviews Were, As soon as Again, Entirely Fictitious

In a subsequent interview on July, 2020, when pressed about hydrogen manufacturing, Trevor acknowledged producing no hydrogen at all:

Trevor:

“The put is designed to retailer and pump about 1,000 kg’s per day. Electrolyzers are entering into now and desires to be operational with zero emission yelp voltaic manufacturing by Nikola World 2020. Now we grasp got 2.5 megawatts of yelp voltaic going up now at the energy. The put capabilities now, however we attain no longer sell it to the general public.

Interviewer:

OK, so for the file: You’re currently producing no hydrogen however you’re planning to develop 1 metric ton/day the usage of 100% yelp voltaic vitality by the terminate of the year? What are you going to employ it for by then?” 

Trevor:

“The allowing course of of manufacturing hydrogen takes remarkable longer than storing and pumping it. We spent the final year building the wonderful hydrogen put in the western world in Phoenix, AZ at our HQ. Now we are in a position to spend the following 5 months installing the hydrogen manufacturing (Electrolyzers, Vitality Electronics, Thermal, Etc.) into that put.”

We found the admission to be unsurprising when we realized who used to be responsible of Nikola’s efforts to create and roll out its supposedly innovative hydrogen manufacturing capabilities.

Nikola’s Director of Hydrogen Manufacturing/Infrastructure Is Trevor Milton’s Little Brother, Who Labored Paving Driveways in Hawaii Prior To Joining at Nikola

Given the complex nature of hydrogen, we wished to stare closer into the resumes of who Nikola has effect responsible of the kind of most necessary and unpleasant aspect of their commercial.

We anticipated to search out that Nikola had hired an international-current scientist to lead its innovative hydrogen efforts. As a substitute, it appears Nikola has appointed Trevor Milton’s exiguous brother, Travis, as the Director of Hydrogen Manufacturing/Infrastructure.

Travis has held his title at Nikola for over 5 years, origin January 2015, primarily primarily based fully on his LinkedIn.

Curiously, he appears to be like to grasp landed on this significant spot the identical month he executed his final job, where his LinkedIn lists him as “President” of “Self-Employed” in Maui, Hawaii.

We found a chain of endorsements for construction work from contributors in Maui, Hawaii.

At final, we found a internet region that highlighted Travis’ work pouring concrete and building a barn as a subcontractor in Maui.

Mr. Milton poured two long and bright driveways (one driveway used to be the sector’s steepest), and intensive walkways with clarify embossed Hawaiian leaves,” the internet region says.

One more image from the positioning characteristic’s Travis’s work applying epoxy flakes to a staircase:

Celebrity Beauty: http://hindenburgresearch.com/
(Pictured: Travis Milton applying epoxy flakes to staircase in Hawaii sooner than becoming a member of Nikola and allegedly revolutionizing the hydrogen gasoline commercial)

We’re now hazardous how this work prepped Travis for a key role in solving one of many sector’s very most life like scientific challenges, however he appears to had been handsomely rewarded for his discoveries.

Trevor has given Travis, alongside with other relatives of Trevor and clutch out early workers, inventory price over $110 million as of this writing. [Pg. 116]

One source we spoke with, who previously labored with Travis, described him as no longer having a formal role and as any individual Trevor “saved round” if they “wanted any individual to retain a rope, or one thing esteem that” whereas they had been engaged on vehicles.

Nikola’s Head of Infrastructure Pattern, In Value Of “Main Pattern” Of Nikola’s 700+ Hydrogen Map Network, Is the Damaged-down CEO And Identical old Supervisor of a Golf Club In Idaho

Moreover central to the firm’s hydrogen put initiative is Nikola’s “Head of Infrastructure Pattern”.

As soon as all as soon as more, we could maybe well well also await that the rollout of Nikola’s cruise-to-cruise hydrogen manufacturing network would be managed by an particular person with an intensive background in both science as well to tidy infrastructure traits.

For this task, the firm chose Dale Prows, who is described at the 13: 20 stamp in a video produced for traders sooner than the firm going public, as “one of our hydrogen specialists.”

Prows joined Nikola after spending nearly 4 years as CEO and Identical old Supervisor at a residential golf course in Idaho.

Prows, alongside with Travis Milton, are interestingly going to spearhead building the sector’s first network of 700 hydrogen manufacturing and fueling stations.

Trevor: “We’ve Assembled One amongst the Most attention-grabbing Groups in the World”

Nikola’s Chief Engineer: A Background Largely in Tool Pattern and Pinball Machine Repair

Trevor customarily touts bringing in high abilities from all over the effect the sector. Key to that personnel is Nikola’s Chief Engineer, Kevin Lynk.

Trevor credit Kevin with designing the total firm’s e-axle, a complex task for one automobile no longer to mention Nikola’s proposed suite of vehicles. At 8: 43 in the following video, Trevor principal parts the total parts of Nikola’s e-axle’s as developed by Lynk:

“The final e-axles at Nikola had been developed by Kevin… (These include) rotor, stator, cooling, thermal, gears, and every so regularly inverters.”

(Inform their non-public praises that the e-axles seem like mostly developed by Bosch.) We reviewed Kevin’s biography on LinkedIn and located that sooner than Nikola, he labored for 7 months designing oilfield merchandise the usage of CAD instrument, 3.5 years in instrument fashion, and sooner than that spent 9 months repairing pinball machines.

Here is the remainder of his resume after college and sooner than Nikola, per his Linkedin:

Celebrity Beauty: http://hindenburgresearch.com/

Trevor Milton in 2020: We Make All Our Inverters In-Rental

Actuality: Nikola Buys Inverters from a Third-Event Vendor. A July Video Reveals the Inverter, however the Model of the Producer is Covered with Overlaying Tape

After the serious Bloomberg article, it gave the affect there used to be an undercurrent of skepticism that Trevor became alive to about countering.

Nikola had regularly made claims that its parts had been developed in-residence, dating wait on to Nikola’s first press open on Might presumably well also merely 9, 2016:

“The majority of the semi-trucks parts are being developed by Nikola.”

But these claims never appeared to manufacture sense. As we grasp already proven, Nikola’s early history used to be that of a firm loudly claiming to grasp remarkable proprietary know-how whereas quietly signing partnership agreements with third-event suppliers.

The refrain of doubts amongst Nikola’s “haters” grew louder after it became a public firm.

When folks would effect a question to skeptically what Nikola had ever essentially developed, Trevor would answer with a checklist of parts honest like batteries and inverters made in-residence. Scrutinize examples, right here, right here and right here:

Celebrity Beauty: http://hindenburgresearch.com/

Trevor later tried to counter skeptics by exhibiting videos of the two prototype trucks that had been built with accomplice Bosch, suggesting that this by hook or by crook disproved the allegation that the earlier truck he built had never been executed.

In one such video, on July 14th, 2020, Trevor walks viewers through the Powertrain for the Nikola Two. At the 29: 30 stamp Trevor begins describing the in-residence inverters and the map other OEMs are asking to employ Nikola’s proprietary inverter tech:

“We attain the total e-axle map in residence. The final gears, the gear reductions. The thermal the cooling. Even the controls that jog with it. And, additionally, the inverters as successfully. All inverters on the Nikola truck are doubtlessly about a of doubtlessly the most evolved instrument methods that I know of anyplace in the automotive world. Why attain I know that? It’s because other OEMs are asking us to employ it.”

At the 7: 02 stamp, we are in a position to stumble on the inverters up stop. There could be a rather inconspicuous green a part of covering tape on the component:

Celebrity Beauty: http://hindenburgresearch.com/

Here it is up stop:

Celebrity Beauty: http://hindenburgresearch.com/

The inverter is no longer proprietary to Nikola. Cascadia Motion, a miniature firm in Portland, provides such inverters off the shelf. The tape is preserving the stamp which could maybe well well assuredly video display the product description and other specs that fabricate determined who built the component:

Celebrity Beauty: http://hindenburgresearch.com/
Celebrity Beauty: http://hindenburgresearch.com/

We texted a gross sales engineer for Cascadia and asked if the model used to be on hand to the general public or if it used to be a customer explicit model, and so they confirmed that it used to be on the market to the general public.

This follows the identical pattern. Nikola has customarily former off-the-shelf merchandise from third parties, whereas claiming to grasp remarkable internal proprietary know-how and to “map” the total merchandise itself. It then companions with companies that essentially grasp the parts Nikola claimed to grasp already developed internally.

July 2020: Trevor on the Nikola “Tre” Truck: “We Absorb 5 of Them Coming Off the Meeting Line Factual Now”

Bosch Spokesperson In September: We Don’t Absorb Any But

In February 2020, a deal used to be unveiled to develop the Nikola Tre in Europe on an Iveco S-come platform and the usage of Bosch electronics.

Celebrity Beauty: http://hindenburgresearch.com/
(Pictured: Inveco S-Technique vs. the planned Nikola Tre)

Nikola had said it’d be ready to blow their very appreciate horns the Tre at the Hannover IAA trade Honest this September, doubtlessly the most prestigious in Europe.

In a July 2020 podcast, (39 minute stamp) Trevor gave the affect it used to be all methods jog – at the very least on the initial BEV model:

“Now we grasp got doubtlessly the most evolved battery electrical truck on this planet. Now we grasp got a truck coming into manufacturing valid kind now with 720 kwh the wonderful battery all americans knows of on a truck anyplace on this planet coming into manufacturing. Now we grasp got five of them coming off the assembly line valid kind now in Ulm Germany. They’ll enter manufacturing terminate of subsequent year-ish, somewhere round there.”

Nonetheless in a phone interview on Sept. 9, Bosch said no longer so.

Thorsten Schoenfeld, spokesman for Bosch’s electro-mobility unit at headquarters in Germany said this:

“No they’re no longer ready but. I don’t know exactly the year however we’re engaged on it.”

When asked what exactly the Nikola-Iveco-Bosch partnership had planned to video display at the Hannover trade dazzling – now canceled attributable to Covid-19, Schoenfeld said:

“We would grasp proven heaps of enhancements and a roughly truck however no longer a real truck however a showcase.”

July 2020: Nikola Posts Video of Nikola Two Going “0-60 in Below 5 Seconds”

Actuality: The Automobile Used to be Already Rolling When the Video Started and it Composed Took Over 10 Seconds

Following the Nikola One “demonstration”, the firm used to be triumphant in raising capital and bringing on a chain of legit companions. Car provide heavyweight Bosch agreed to work with Nikola in September 2017, and, by all reports, largely built its Nikola Two prototype trucks.

In a tweet, Trevor posted a video claiming to showcase the Nikola Two prototype’s acceleration capabilities:

Celebrity Beauty: http://hindenburgresearch.com/

The video begins with the truck already rolling. By honest valid the usage of a classic stopwatch, we are in a position to stumble on that it takes over 10 seconds between the commence up and Trevor exclaiming “there it is” on the video. The speedometer is no longer visible, and we obviously don’t grasp any skill to peek what is de facto powering the truck.

[Click here to see the video, with a stopwatch]

In accordance with questions about the veracity of the video (1,2), Trevor promised that skilled video would soon apply, however we grasp viewed no such update.

Celebrity Beauty: http://hindenburgresearch.com/

Total, files has been sparse on the Nikola Two. Closing month, a total lot of Tesla followers toured the Nikola facility and rode in the prototypes, with some reporting that they had been deal surprised the EV truck used to be so loud. It appears, the AC had been grew to alter into on full blast, which saved the riders frigid from the Arizona heat however additionally fueled skepticism.

There had been a total lot of videos of the prototypes built by Bosch being driven round parking heaps (1,2) and at unknown speeds carrying unknown-sized loads in stylized videos, however as soon as extra, traders and companions are left at center of the evening about what Nikola in truth has.

Nikola’s Damaged-down CFO Left and Sued the Firm. The Total Docket is Sealed—Nonetheless A Month After the Lawsuit Nikola Without notice Launched it Had Refunded All Truck Deposits.

Did They Ever In point of fact Exist?

In March 2018, Nikola’s former Chief Financial Officer Jonathan Spira filed a lawsuit in opposition to the firm, with Nikola countersuing a total lot of months later.

A surprising trade in CFO is regularly a crimson flag. A CFO that departs whereas suing the firm obviously is a ideal bigger crimson flag. Each cases had been sooner or later disregarded. The allegations stay unclear, and it is unclear whether or not they had been disregarded as phase of a settlement.

Prior to the lawsuit by its CFO, Nikola claimed to grasp 7,000 pre-orders with deposits, a total doable tag of $2.3 billion for its proposed electrical truck. Change watchers considered the numbers with skepticism at the time. Per CleanTechnica:

“Despite reportedly taking $10.5 million in reservation deposits (all the map through ~7,000 preorders), the Nikola Motor Firm has fully backed faraway from its plans to give a battery-electrical Nikola One semi-truck, primarily primarily based fully on fresh reports.”

“…Imperfect news for folk who effect down reservations (if the reservation figures had been valid/valid)”.

A month after the lawsuit used to be filed, Nikola without warning launched through Twitter that it used to be refunding all deposits

Celebrity Beauty: http://hindenburgresearch.com/

Change blog Green Automobile Experiences described the jog to refund deposits with confusion:

“The point of refunding the deposits remains somewhat unclear, nonetheless, even when Nikola is flush with orders and cash. Customers which grasp sent the firm money grasp skin in the sport, meaning they’re extra more possible to apply through with their purchases at the terminate of the day.”

Nikola’s Expose E-book: Extra Fluff Than Substance

As of the most fresh quarter, Nikola reported 14,000 cancelable reservations for its trucks. [Pg. 35]

Basically the most high-profile reservation customarily mentioned is Anheuser Busch’s contract for 800 trucks. The agreement provides most necessary outs nonetheless, allowing Budweiser to execute (i) anytime with 1-year scrutinize (ii) if a 90-day avenue take a look at doesn’t map as a lot as expectations; or (iii) if the merchandise aren’t delivered at all.

At the time of the Anheuser Busch deal, Ryder used to be to map all servicing, however that relationship has since ended.

Nikola has additionally publicized its care for Arizona trash firm Republic Companies and products, with an insist for 2,500 refuse trucks in response to the Nikola Tre. These seem like for battery electrical vehicles no longer hydrogen-powered models. Nikola said the refuse trucks would be supplied from the Nikola factory at Coolidge, which has barely begun.

The leisure of the “reservation” e book appears to be like non-committal. In funding bank Cowen’s initiation of protection yarn for Nikola, it infamous:

“U.S. Xpress makes up bigger than one-third of the 14,600+ reservations readily on hand”

Were U.S. Xpress to total such an insist it would amount to ~$3.5 billion in tag. Nonetheless as of its final quarterly yarn, U.S. Xpress had handiest $1.3 million in cash readily on hand. [Pg. 3] There could be now not any realistic come that the firm could maybe well well also presumably insist the sequence of trucks it has “reserved”.

Having a tidy insist e book sounds remarkable however having shoppers both willing and credibly ready to pay is another subject fully.

Nikola’s Fixation with NDAs, Secrecy, and Correct Intimidation

Normally, the two most obtrusive crimson flags that one thing is amiss at a firm are (a) an obsession with secrecy and (b) the fixed risk of like minded action or retaliation in opposition to anybody who speaks out.

Firms assuredly employ a current justification for such paranoia—they’ve found the holy grail of one thing and so they must obtain all measures to prevent opponents from discovering out about it.

Normally, in these cases, the real secret’s that there in truth isn’t remarkable at the wait on of the curtain at all.

Right through our study, we reached out to extra than one former Nikola workers. We had been suggested by one who Nikola had issued a like minded warning to all former workers to intimidate them into no longer discussing the firm.

Now not too long up to now, a total lot of Tesla followers visited Nikola and had been required to put NDAs.

We even reached out to the actors in a Nikola commercial exhibiting the Nikola One “in jog” (stumble on part above). We found that the actors had been required to put NDAs. What proprietary secrets could maybe well well also an actor standing subsequent to a truck presumably study that require them to be muzzled?

At One Level, Nikola Claimed to Obtain its Obtain Natural Gas Wells

But Now, All Mentions of These Supposedly Owned Wells are Gone. We Chanced on No Screen of Nikola Ever Owning Natural Gas Wells in its SEC Filings

Nikola’s claim to appreciate its appreciate vitality sources (esteem its fictitious hydrogen manufacturing operation) is no longer namely fresh. At heaps of parts in its history, Nikola has claimed to appreciate pure gas wells, despite no evidence we could maybe well well also name suggesting this used to be the case.

As an instance, the Web Archive presentations Nikola’s courageous claims of having the flexibility to “guarantee” low-fee gasoline for its searching for what you offer because it essentially owned pure gas wells.

Celebrity Beauty: http://hindenburgresearch.com/

One astute follower of the firm asked about the “gas wells” to which the Nikola company legend said “we level-headed grasp them.” If that used to be ever the case, where had been they and where did they jog? Why weren’t they mentioned as an asset in the firm’s prospectus?

Celebrity Beauty: http://hindenburgresearch.com/

Trevor: Has Previously Acknowledged “I Don’t Inspire Down” Within the Face of Criticism

Repeat it: Here Are 53 Questions—Let’s Scrutinize How Many He Backs Down from Answering

Trevor has succeeded at intimidating many with threats of litigation. As we’ve said repeatedly sooner than, we welcome such threats. We obtain that litigious executives regularly grasp doubtlessly the most to screen. Most regularly executives will handiest answer probing questions beneath oath (if ever).

Nonetheless on the off likelihood we’re honest valid flat out unsuitable about fully the total lot, right here is Trevor’s replacement to video display it. These are the explicit questions we deem traders in Nikola and, largely, traders in Trevor deserve the answers to:

  1. Did probabilities are you’ll per chance well grasp your provider personnel traverse the country to screen doubtlessly lethal defects with dHybrid’s product to stop the care for Worthington, as alleged by one of your former workers on recorded audio?
  2. What used to be the reason for Worthington’s later impairment of dHybrid and the write-off of $1.5 million in warranty costs?
  3. In Might presumably well also merely 2015, you represented in a legally binding contract with EVdrive to grasp “fresh and precious proprietary turbine know-how”. Months later, emails confirmed you had been in discussions with Brayton to remove their generators. Did probabilities are you’ll per chance well grasp any “fresh and precious turbine know-how” at the time you represented having it?
  4. If that is so, what used to be it, and why did you then must remove turbine know-how from Brayton?
  5. Before without warning pivoting to gasoline cells, you claimed that your Compressed Natural Gas (CNG) know-how used to be “10-15 years sooner than another OEM in gasoline efficiencies, MPG, and emissions”. Why did you without warning abandon this supposedly innovative know-how in need to sell it for billions of bucks?
  6. In December 2016, you claimed at Nikola World, on video, that the Nikola One “fully capabilities and works…this is a real truck—this is no longer a pusher.” You later admitted that it used to be NOT fully functional to Bloomberg. Did you brazenly lie, or used to be this honest valid a chain of additional than one dazzling errors?
  7. After the Bloomberg part, you claimed on Twitter that there used to be a desk with truck gears and parts sitting in entrance of the viewers for all to peek. The match used to be extensively documented—are you able to fresh evidence that the kind of desk existed in ugly scrutinize for the total viewers?
  8. Spoil you suspect a desk with gears sitting somewhere would in any come invalidate your claims at the time that the truck fully functioned?
  9. After lambasting Bloomberg’s reporter publicly, calling him a “deceiver” and asserting he needs to be fired, you then promised the total audio of the interview with Bloomberg would be released. Why haven’t you released it but?
  10. Spoil you suspect it’s incandescent to threaten to sue journalists for getting a yarn fully honest valid?
  11. In August 2016, you claimedNikola has engineered the holy grail of the trucking commercial”, pivoting from hydrogen to pure gas. Now that probabilities are you’ll per chance well grasp acknowledged the Nikola One wasn’t fully “engineered” at the time of the commentary or the December video display, attain you will grasp to obtain this press open in full?
  12. Did the Nikola One truck grasp hydrogen generators or Brayton CNG generators at the time of the demonstration in December? Used to be the fueling system hydrogen or CNG?
  13. Why did you insist honest valid two weeks sooner than Nikola’s surprising “pivot” to hydrogen that “CNG is the come to head” on Twitter whereas you happen to had been imminently planning to bid a swap?
  14. Did probabilities are you’ll per chance well grasp an artist arrive in and stencil “H2” and “Zero Emission Hydrogen Electric” on the aspect of the Nikola One despite the truck having pure gas parts effect in?
  15. Spoil you level-headed obtain into consideration the Nikola One to had been “fully functioning” despite wanting to snake an electrical energy cord up through the stage so as to energy the otherwise fully non-working automobile?
  16. For the “Nikola One in Motion” video, will you confirm that you just towed the non-functioning truck to the tip of a hill and honest valid filmed it rolling down?
  17. Which Nikola workers knew about the “belief” for the Nikola One in Motion video and which ones participated in creating it? Did these include Kevin Lynk, your Chief Engineer?
  18. For fogeys that released the above video, the Nikola Twitter legend said, “Pre-manufacturing models to hit fleets in 2019 for discovering out”. Damaged-down workers narrate that no work continued on the Nikola One. What work did you ever total on the Nikola One after the video display?
  19. At the time, did you suspect pre-manufacturing models of the Nikola One would honest valid magically develop themselves?
  20. For fogeys that “unveiled” the NZT in April 2019 you praised the automobile and its engineering, but a former employee described it as handiest a “mock up” and said you scrapped the map after the video display attributable to a need for a “broad re-map”. How attain you answer?
  21. In accordance with you, Nikola designs most things in-residence. Did you outsource the redesign of the NZT to Stellar Approach?
  22. You claimed that Nikola’s headquarters has 3.5 MW of yelp voltaic panels on the roof, but later media reports and images of the roof video display they don’t exist. The effect did they jog?
  23. In October 2019, you teased a most most necessary battery leap forward 2 days sooner than signing a letter of intent with ZapGo. Then you definately launched that you just had revolutionized the battery commercial, sooner than realizing that it used to be vaporware and in the shatter suing the firm. Why didn’t you honest valid the clicking open or update your traders on the gap of the deal, which had fallen apart?
  24. In December 2019, Jason Roycht, your VP of Abilities Pattern, realized that ZapGo’s President had been indicted for fraud. He raised alarms about the firm’s relationship with Porsche, which he determined used to be overstated. Why did you hype the battery tech in February on Twitter despite already brilliant of all these components?
  25. You formally terminated the agreement for the apparent “sport altering battery know-how” from ZapGo on February 26th, 2020. It is now 6+ months later. Absorb you ever ever publicly acknowledged that this most most necessary deal fell apart?
  26. In August 2020 when namely puzzled about the deal by a Tesla fan, why didn’t you obtain the replacement to let folks know that it had fallen through?
  27. You as a substitute suggested the questioner that you just had a care for an unnamed college relating to to their battery know-how and that Nikola had funded the study. Which college had been you working with on the battery know-how, how remarkable did you fund them with, and exactly what grasp you ever developed alongside side them up to now? Will you submit the agreement for all to peek?
  28. You claimed in an interview to grasp succeeded at reducing the associated fee of hydrogen by ~81% from peers, declaring “we’re down below $3/kg on our hydrogen now”. How remarkable hydrogen has Nikola produced at this tag, if any?
  29. At Nikola World 2019 you claimed on video to be producing 1,000 kg of hydrogen per day at your headquarters. When pressed by a reporter, you later admitted that you just develop no hydrogen. Did you lie about producing hydrogen on digicam to the total viewers at Nikola World?
  30. Why did you appoint your brother Travis as “Director of Hydrogen Manufacturing/Infrastructure”? What ride does he grasp in hydrogen study and manufacturing?
  31. What would you insist are Travis’ key contributions to Nikola’s alleged leap forward advancements in hydrogen manufacturing?
  32. What led you to clutch out Dale Prows, whose old employment consisted of managing a golf course, to be the “Head of Infrastructure Pattern”?
  33. Spoil you essentially create all your inverters in-residence or attain you remove them from Cascadia?
  34. Why did you effect a a part of tape over the Cascadia stamp whereas you had been presenting your supposed “in-residence” inverter on video?
  35. What OEMs grasp asked to employ “your” inverters of their merchandise?
  36. Why did you submit a video asserting the Nikola Two had long gone from 0-60mph in beneath 5 seconds when anybody with a stopwatch can stumble on that it took at the very least 10 seconds?
  37. Following the 0-60 video you promised to submit a skilled version of the video, asserting it used to be honest valid being edited. Nonetheless you never did. Why? Does the Nikola Two grasp as remarkable energy as you’ve claimed it has?
  38. Within the TeslaCharts podcast at the 40: 20 minute stamp you said concerning hydrogen stations: “we’re gobbling up doubtlessly the simplest locations valid kind now“. But your newest quarterly yarn confirmed no real property property excluding to your fresh headquarters. The effect exactly are these locations that probabilities are you’ll per chance well had been “gobbling up”? How many grasp you ever bought already?
  39. What’s the retain up alongside with your Coolidge facility construction? Absorb plans been submitted but and permits been received? Why is there on the discipline of no put of growth?
  40. Why attain you spend so remarkable time on social media battling your “haters” and threatening former workers with litigation over NDA enforcement? Don’t you can in truth grasp a factory to create and merchandise to develop?
  41. For fogeys that supplied your St. George Security & Alarms firm in an $300,000 deal, your miniature commercial accomplice, who said he had a 50/50 care for you, handiest received ~$100,000, primarily primarily based fully on him. Did you to find bigger than him despite having a 50/50 arrangement?
  42. The buyer of the concern commercial said you misled him and that customer contracts and other deals fell through submit-sale. What took spot?
  43. How remarkable did you fabricate whereas you supplied the concern commercial a 2nd time? How remarkable of these proceeds did your obvious “50/50” commercial accomplice to find?
  44. You claimed that uPillar.com had 80 million monthly energetic customers and that you just had beat Amazon to the procuring cart, despite launching in 2009. A former employee known as the 80 million number “absurd”, and media articles at the time portray the page views a long way decrease. What evidence are you able to video display that you just had that sequence of page views?
  45. Spoil you realize the internet procuring cart used to be invented 15 years earlier, in 1994?
  46. Swift filed a lawsuit in opposition to your firm dHybrid in mid-2012, alleging, amongst other things, that you just had former its funding for non-public employ. Are you able to develop bank files exhibiting the come you former dHybrid funds? Did you divert funds to uPillar.com?
  47. For fogeys that reached out to Ryder Techniques about an funding in dHybrid in 2011, you said that the Swift contract used to be for $250 million, when the accurate agreement handiest presentations it used to be $16 million. Why the tidy discrepancy?
  48. In another dHybrid presentation, you claimed the Swift contract used to be for $300 million. What evidence are you able to fresh that presentations your Swift contract used to be for $250-$300 million, and no longer the $16 million in the explicit agreement?
  49. Did you claim to sPower that you just had executed the dHybrid system and then misrepresent its results to them, as alleged of their lawsuit?
  50. For fogeys that launched dHybrid Techniques in 2012, why did you claim in marketing and marketing and marketing supplies to grasp started the commercial in 2011?
  51. In 2018 you had been sued by your former CFO. What had been the allegations in the criticism, which is now sealed?
  52. You claimed Nikola owned its appreciate pure gas wells, then re-affirmed that you just “level-headed grasp them” when later asked what took spot to them. Are you able to provide any documentation proving Nikola owns/owned pure gas wells?
  53. Absorb you ever ever deceived anybody?

Celebrity Beauty: Our Conclusion: Nikola is a Huge Fraud Constructed on Dozens of Lies

Most regularly folks misspeak by likelihood. No person has a ideal memory, and we all every so regularly to find things unsuitable.

Nonetheless what we grasp witnessed at Nikola, and namely from Trevor Milton, is a pattern of successfully-planned and deliberate acts of deception ranging from (a) the staging of non-working merchandise as if fully functional, wrapped in a immense sequence of lies about capabilities that don’t exist; (b) the staging of misleading videos, which require intensive premeditation, planning and execution; (c) materials lies about capabilities, partnerships and merchandise that merely attain no longer exist at all, on video and barely in entrance of total rooms stuffed with folks; and (d) a culture of secrecy and intimidation that up to now has largely saved it all beneath wraps.


We deem Trevor Milton is incapable of telling the truth. We judge he lies esteem most folks breathe. It is pure for him, and our intensive evaluate of his history suggests it has been this come throughout his total commercial occupation.

As soon as in some time a yarn comes round that exposes how exiguous the “specialists” in truth know. Theranos had inked partnerships with Walgreens, Safeway, and Cleveland Sanatorium and had staffed its board with luminaries. Madoff raised billions in capital from refined traders all the map through the globe.

The outstanding thing about Nikola’s account is no longer that any individual esteem Trevor Milton exists, however that he has managed to parlay his tales and lies into deals with about a of doubtlessly the simplest manufacturers and companions on this planet by claiming to appreciate remarkable proprietary know-how and having efficiently built innovative merchandise that merely didn’t exist.

He transformed these deceptions and fraudulent guarantees into an empire that at one point used to be valued at $34 billion, higher than Ford and Fiat Chrysler. He’s signed deals with GM, Anheuser Busch, Bosch, Worthington, and a slew of remarkable automotive gamers. He received funding from Fidelity and ValueAct, amongst other name-designate institutions.

We essentially deem Nikola is both a put of the times and a yarn for the ages.

Appendix: Extra Backstory

2005: Trevor’s First Change—A Native Security Firm, The effect He It appears Burned Events on Each Aspects of a Deal

Trevor’s commercial occupation started when he used to be in his early twenties and opened a firm that supplied safety methods door-to-door in St. George, Utah. Trevor described the resulting early success in an interview: “I built that firm up and interior about a year or two I had supplied it for nearly two million bucks, and I belief I was on high of the sector.”

The firm, known as St. George Security and Alarms, used to be registered in 2004, primarily primarily based fully on the Utah Secretary of Enlighten internet region. Two years later, Trevor and a commercial accomplice supplied the firm for a fee of $300,000 up entrance and monthly payments of round $5,000 that brought the total clutch tag of the commercial to $850,000, primarily primarily based fully on the buyer, who we interviewed.

The buyer suggested us that he realized soon after procuring the commercial that it used to be no longer as Trevor had portrayed it; pending contracts fell through and it grew to alter into out that customers had been overpromised throughout the door-to-door gross sales course of. The buyer effect the commercial wait on to Trevor, as the acquisition agreement allowed, and took a total lack of $300,000. Trevor then re-supplied the commercial a 2nd time to another firm in Salt Lake for an unknown sum, he said.

Particularly, when we contacted Trevor’s commercial accomplice, he said he received about $100,000 from the sale – about what he effect into the commercial – and that it used to be news to him that the buyer agreed to pay bigger than the initial upfront fee or that the commercial had been supplied a 2nd time. He additionally said that if Trevor supplied the commercial for $2 million then Trevor owes him $900,000.

It’s unclear whether Trevor essentially became a millionaire two years after founding his first commercial, however he had already allegedly burned a commercial accomplice and the acquirer of that commercial.

July 2009: Trevor Launched uPillar.com, a Web region He Claimed Had 80 Million Month-to-month Interesting Users, Invented the On-line Shopping Cart and Used to be Beating Amazon

Damaged-down Worker: 80 Million Users Notify is “Absurd”. uPillar Used to be a Failed Craigslist/eBay Clone and The Shopping Cart Used to be Invented in 1994

Trevor’s legend of his upward thrust in the commercial world follows the “$2 million” fear firm sale with claims he reinvested the money from the concern firm into uPillar.com, a internet region he launched in July 2009. The positioning supplied free classified classified ads and monetized by charging automobile sellers to sell former vehicles online.

Celebrity Beauty: http://hindenburgresearch.com/
(Pictured: Scan of Trevor Milton uPillar commercial card from former employee)

For the time being in interviews, Trevor describes uPillar as a without notice rising firm that used to be beating Amazon and eBay:

“[It was] come sooner than its time essentially…we had been beating Amazon at what they had been doing.

We had the most necessary ever procuring cart in history. No person else had ever developed a procuring cart to remove 50 items from 50 heaps of sellers, checkout at one time…the most necessary personnel on this planet to with out a doubt attain that. We beat Amazon, we beat eBay…”

“Finally we would grasp ended up being Amazon however we had been in Utah and at the time Utah had no clue what funding used to be around the internet. So, we honest valid grew too immediate and that used to be a lesson for me in the imply time used to be no longer to develop too immediate.”

In a fresh interview with Forbes, Trevor claimed uPillar had 80 million monthly customers. Websites at the time portray uPillar as “handiest reporting on average round 200k monthly visits” and as spending enormous on marketing and marketing to to find a immediate bump, then staring at its usage therefore tank.

We spoke with a former employee who known as the claim of 80 million monthly customers “absurd”. They said of the positioning:

“Worthy of our time used to be spent approving classified postings. We had been regularly in a position to utilize with it, with handiest about a of us approving them.” (Due to the of the low online page visitors).

“Quite so a lot of the classified ads had been posted by scammers from foreign, so we repeatedly rooted these out by identifying I.P. addresses.”

“The to find region did now not insist a product to rival eBay. Our mass uploader characteristic used to be supposed with a concept to compete with eBay, and we had been attempting to insist it to customers sooner than eBay raised its itemizing costs, however we weren’t in a position to. Many customers weren’t in a position to jog their storefronts from eBay, because our internet region couldn’t facilitate the mass product files. Users had been stuck the usage of eBay.”

The previous employee additionally suggested us:

“Amazon used to be no longer talked about a competitor…eBay and Autotrader had been.”

For reference, uPillar launched in 2009. It did now not grasp the most necessary procuring cart, and it used to be no longer beating Amazon. The first online procuring carts had been former in 1994, the identical year Amazon used to be founded. By then, Google had processed nearly 800 billion searches, and the iPhone had been in existence for 2 years. Amazon had existed for 15 years and reported over $4.6 billion in current eCommerce gross sales rather then books.

Celebrity Beauty: Disclosure: We are immediate shares of Nikola Corp (NASDAQ:NKLA)

Correct Disclaimer

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[1] Extra sources [1,2] effect the associated fee of hydrogen manufacturing for vehicles at $16.63/kg and $16.51/kg. Costs are coming down. A 2011 DoE yarn states that at $4/kg hydrogen would attain parity with fossil fuels. Most up-to-date reports by commercial sources, at the side of the Hydrogen Council and Shell and by funding groups at the side of Goldman Sachs and Kepler Cheuvreux, envision hydrogen coming down 50% over the following 5-10 years. That every being said, it hasn’t took spot but, and Nikola appears to grasp executed nothing to come the course of despite its claims to grasp already achieved leap forward stages.

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