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Negotiations between Nikola and energy companies reached an impasse after being accused by short sellers
Sep 24,2020 17:15CST
The content below was translated by Tencent automatically for reference.

SMM: according to people familiar with the matter, the negotiations between Nikola and a number of potential partners, including BP, on the construction of a hydrogen filling station have stalled due to the influence of the previous short selling report released by the short seller Hindenburg Research.

On September 23rd, foreign media quoted people familiar with the matter as saying that potential partners are unwilling to press ahead with cooperative negotiations due to increased regulatory scrutiny of Nikola, but the deal is still likely to be finally reached in the future. Affected by the news, Nikola's shares fell 26% to $21.15 on the day. Neither Nikola nor BP immediately responded to requests for comment.

Nikola has been in talks with a number of energy companies to reach a cooperation to establish a network of hydrogenation stations, which will contribute to the promotion and popularization of Nikola hydrogen-powered trucks. Nikola executives reportedly believed that "this potential deal has made progress," but then the short seller Hindenburg Research released a short report that questioned "Nikola and its technical readiness."

Two weeks ago, a scathing report from Hindenburg said there was ample evidence that Nikola and its founder, Trevor Milton, had established partnerships with several carmakers by falsely promoting the company's know-how.

Milton resigned after the charges, but Kim Brady, Nikola's chief financial officer, said on Sept. 22 that the company had the support of all existing auto industry partners. Nikola publicly denied Hindenburg's allegations and threatened legal action against him.

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