Nikola’s good news/bad news
IT’S BEEN A GOOD NEWS/BAD NEWS PERIOD FOR high-profile electric truck startup Nikola – with its founder charged with fraud…
And the company trying to resurrect its reputation by demonstrating a prototype genuinely driving under its own power.
Nikola creator Trevor Milton faced securities fraud charges in a New York court – alleging that he made false claims that Nikola was closer to releasing a functional product than it truly was….
And that he raised more than $US500million of investments in the process.
The charges allege that Milton used a staged video to create the false impression that its Nikola One tractor unit was capable of moving under its own power – when, in fact, the demo truck was simply rolling downhill.
Also, the charges allege that Milton falsely claimed the company was producing its own hydrogen fuels at below-market rates and had secured billions of dollars worth of truck orders.
Nikola, which has distanced itself from Milton (although he remains its largest shareholder), quickly followed up his indictment by releasing video footage of a newer Nikola Tre prototype driving….uphill.
In its description of the new footage, which it released at the same time as its second quarter financial results, Nikola Motors says: “Rough terrain? Pull loads up a 12% grade? We’ve got this. Watch as the Tre BEV prototype is put through the paces in durability testing at the Indiana proving grounds.”
The Tre has been developed in partnership with Iveco and reportedly uses a Nikola-provided battery electric powertrain, housed in a rebadged Iveco S-Way cab and chassis.
T&D