Hyperdrive
Nikola Falls as SEC Said to Examine Short-Seller Allegations
- Startup’s stock resumes swoon despite company’s denial
- Regulatory inquiry could cloud partership with General Motors
This article is for subscribers only.
Nikola Corp. shares fell as much as 10.4%, resuming its decline as investors reacted to word of a U.S. Securities and Exchange Commission investigation into allegations it deceived investors about its prospects.
Bloomberg News reported late Monday the SEC is examining the electric-truck maker to assess the merits of a short-seller’s report last week raising questions about its business practices. Shares of Nikola had rallied earlier Monday after it issued a more detailed denial of allegations laid out in the report from Hindenburg Research on Sept. 10.