Special purpose acquisition companies (SPAC) just cannot get a break for now. VectoIQ Acquisition Corp, the SPAC that is now trading under the more familiar name of Nikola Corp, was the subject of a negative report by Hindenburg Research. No surprise then that Nikola’s share price fell, forcing its founder and executive chairman Trevor Milton to step down on Sept 20.

Hindenburg Research alleged that one of Nikola’s promotional videos Nikola One in Motion involved towing a truck to the top of a hill on a remote stretch of road and filmed it rolling down the hill. The video was then rotated to look as if the truck was moving on flat terrain. Nikola One in Motion was meant to demonstrate how intelligent the company’s trucks are. Hindenburg also claimed that Nikola’s proprietary technology was purchased from another company.  

Nikola produces environmentally-friendly heavy-duty trucks. Some market watchers saw it as a peer to Tesla whose shares touched new highs this year. Both companies are named after Nikola Tesla, the famous physicist and engineer of the early 20th century who designed the alternating current.

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