(1/1)
After the $GM - $NKLA deal to produce the Badger, and then the Hindenburg Research article I was baffled and decided to do some research.
In short, I believe everything that happened in the last few years can be finally explained by a single thing: The $GM deal (Thread👇👇)
After the $GM - $NKLA deal to produce the Badger, and then the Hindenburg Research article I was baffled and decided to do some research.
In short, I believe everything that happened in the last few years can be finally explained by a single thing: The $GM deal (Thread👇👇)
(2/2)
Let's start with the short-seller article released by @HindenburgRes.
It claims that Trevor Milton (and Nikola) is a fraud. It is a very long and detailed report, asking some very relevant questions and also citing sources to fill in the gaps.
hindenburgresearch.com/nikola/
Let's start with the short-seller article released by @HindenburgRes.
It claims that Trevor Milton (and Nikola) is a fraud. It is a very long and detailed report, asking some very relevant questions and also citing sources to fill in the gaps.
hindenburgresearch.com/nikola/
(3/3)
It claims that Trevor has lied on countless occasions about what proprietary technology Nikola has and that they used inoperable vehicles for demos while claiming that they were fully functional.
(There are a myriad of other claims as well)
It claims that Trevor has lied on countless occasions about what proprietary technology Nikola has and that they used inoperable vehicles for demos while claiming that they were fully functional.
(There are a myriad of other claims as well)
(4/4)
To this, one might say, "sure, but who doesn't try to exaggerate their product's capabilities?"
This is true, but Trevor has made claims on multiple occasions that they are 10-15 years ahead with their technology and that they are clearly the best in everything they do.
To this, one might say, "sure, but who doesn't try to exaggerate their product's capabilities?"
This is true, but Trevor has made claims on multiple occasions that they are 10-15 years ahead with their technology and that they are clearly the best in everything they do.
(5/5)
He has done this with their CNG tech, their hydrogen conversion tech, their fuel-cells and not so long ago with their battery capabilities.
Some of these have been silently scrapped, and the ones that remain have never made a public appearance even after years.
He has done this with their CNG tech, their hydrogen conversion tech, their fuel-cells and not so long ago with their battery capabilities.
Some of these have been silently scrapped, and the ones that remain have never made a public appearance even after years.
(6/6)
So why would he make these bold claims if he wasn't able to follow through?
And haven't people just been given test drives in their trucks, so it proves that they can deliver on their promises?
Well, kind of, but it is more complicated...
So why would he make these bold claims if he wasn't able to follow through?
And haven't people just been given test drives in their trucks, so it proves that they can deliver on their promises?
Well, kind of, but it is more complicated...
(7/7)
See, they don't have a factory, so they are forced to use OEMs to build their trucks.
That should be completely okay, contract manufacturing can be a good idea, in order to reduce huge CapEx costs to build out your own production lines and factory.
insideevs.com/news/397593/ni…
See, they don't have a factory, so they are forced to use OEMs to build their trucks.
That should be completely okay, contract manufacturing can be a good idea, in order to reduce huge CapEx costs to build out your own production lines and factory.
insideevs.com/news/397593/ni…
(8/8)
The article above states:
"[the truck] integrates Nikola’s truck technology, controls and infotainment."
Based on this, we are led to believe that in this case, IVECO manufactures the truck chassis based on their platform, but Nikola provides their (drivetrain?) technology
The article above states:
"[the truck] integrates Nikola’s truck technology, controls and infotainment."
Based on this, we are led to believe that in this case, IVECO manufactures the truck chassis based on their platform, but Nikola provides their (drivetrain?) technology
(9/9)
The $NKLA story is well and alive at this point, they provide most of the intellectual property for the truck and are just using contract manufacturing (as they have the best tech in the world as stated multiple times).
And then ->
The $NKLA story is well and alive at this point, they provide most of the intellectual property for the truck and are just using contract manufacturing (as they have the best tech in the world as stated multiple times).
And then ->
(10/10)
$GM and $NKLA sign a partnership agreement in which GM gets equity in Nikola and pledges to be the manufacturer for the Nikola Badger, the company's new pickup truck.
All good so far, but here comes the funny part:
$GM and $NKLA sign a partnership agreement in which GM gets equity in Nikola and pledges to be the manufacturer for the Nikola Badger, the company's new pickup truck.
All good so far, but here comes the funny part:
(11/11)
The Badger will be made exclusively using GM's Ultium battery and powertrain and GM's fuel-cell technology.
What happened to Nikola's game-changing tech?
And this is what makes everything crystal clear about Trevor and Nikola's goals in my opinion👇
The Badger will be made exclusively using GM's Ultium battery and powertrain and GM's fuel-cell technology.
What happened to Nikola's game-changing tech?
And this is what makes everything crystal clear about Trevor and Nikola's goals in my opinion👇
(12/12)
$NKLA cannot be called a fraud in the sense, that all this time, docs show they have been trying to buy or work with companies in the green energy space to make their products viable.
But they could not find the right tech to buy and could not create it on their own.👇
$NKLA cannot be called a fraud in the sense, that all this time, docs show they have been trying to buy or work with companies in the green energy space to make their products viable.
But they could not find the right tech to buy and could not create it on their own.👇
(13/13)
So they made these grandiose claims about their tech to sustain the hype and framed the press releases with manufacturers in a way to show that their batteries, fuel-cells, etc. are installed in the trucks
(I don't believe there is evidence to this being true or not atm)
So they made these grandiose claims about their tech to sustain the hype and framed the press releases with manufacturers in a way to show that their batteries, fuel-cells, etc. are installed in the trucks
(I don't believe there is evidence to this being true or not atm)
(14/14)
If they sustain the hype and completely outsource manufacturing, engineering and basically all IP development, they can have an OEM develop a truck, slap the Nikola brand on it and sell it for a higher price.
If they sustain the hype and completely outsource manufacturing, engineering and basically all IP development, they can have an OEM develop a truck, slap the Nikola brand on it and sell it for a higher price.
(15/15)
The $GM deal makes no sense if they wanted to develop their own technology, so I believe this is the way they are going and this will be the business model going forward.
So what does this mean in conclusion?
The $GM deal makes no sense if they wanted to develop their own technology, so I believe this is the way they are going and this will be the business model going forward.
So what does this mean in conclusion?
(16/16)
In my opinion $NKLA is not necessarily going bankrupt. Evaluating other claims of fraud is not my wheelhouse.
But if it becomes just a branding house, the hype will die down and extreme valuations will come to an end.
Let me know if you agree, or tell me how I am wrong!
In my opinion $NKLA is not necessarily going bankrupt. Evaluating other claims of fraud is not my wheelhouse.
But if it becomes just a branding house, the hype will die down and extreme valuations will come to an end.
Let me know if you agree, or tell me how I am wrong!
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