Is Nikola a fraud?

Most of you probably did see the report from Hindenburg Research which has detailed evidence about the Nikola company being a complete fraud.

The report was published a few days ago; the stock suffered (but that was already the case before the report being made public). I did cover the Nikola stock on the blog saying it will go to 0.

On the report

We have gathered extensive evidence—including recorded phone calls, text messages, private emails and behind-the-scenes photographs—detailing dozens of false statements by Nikola Founder Trevor Milton. We have never seen this level of deception at a public company, especially of this size.

What do you think? Is that report true or the guys who did publish it are talking their book (meaning they are short the stock and want it to go down)?

I dont know but I am convinced Nikola will go bust; I mean there is no product to show yet however they are valued 12$ billions. Common! When will this crazy joke stop? And btw, it is not only Nikola, but plenty of companies these days including our darling TESLA.

Regarding fraud, I point towards another famous case: Theranos. That company stated that by using a very small amount of blood, it can perform lots of blood tests very rapidly using proprietary technology. The company was valued almost 9$ billions. In the end, everything proved to be a fraud; the technology was not there and the money dissapeared. Theronos CEO was Elisabeth Holmes; she faces charges for fraud and conspiracy to commit fraud. In her defense, this so called business woman is defending by advancing mental disease so that she can escape being convicted.

As Jim Chanos puts it, today we are in the golden age of fraud.

Chanos’s hedge fund manager Kynikos Associates is named after the ancient Greek word for “cynic”. His pitch is that he can identify corporate disasters-in-the-making. The New York-based outfit employs 20 people and has $1.5bn in assets under management. Chanos also teaches a course on the history of financial fraud (“how to detect it, not how to commit it”, he quips) at Yale University, his alma mater. The syllabus stretches back to the 17th century. Today, he says, “we are in the golden age of fraud”.

Thanks to whom? I'll let you tell me...