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Nikola shares plunge more than 15% amid dispute over short seller's fraud allegations


Nikola shares tumbled about 15% on Friday after the electric vehicle company dismissed fraud allegations made in a report by short selling firm Hindenburg Research.


The accusations come just days after General Motors said it is taking an 11% stake in Nikola and that it will produce its marquee hydrogen fuel cell electric pickup truck the Badger by the end of 2022.


Hindenburg accused Nikola's founder, Trevor Milton, of making false statements about the company's technology in order to grow and partner with top automakers.


Hindenburg said it has evidence including phone call recordings and text messages containing false statements and that the company staged a video showing a truck that appeared to be functional.


"Yesterday, an activist short-seller whose motivation is to manipulate the market and profit from a manufactured decline in our stockprice published a so-called "report" replete with misleading information and salacious accusations directed at our founder and executive chairman.


Wehave retained leading law firm Kirkland & Ellis LLP to evaluate potential legal recourse, including with respect to the activist short seller and any others acting in concert.






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