Though Hindenburg claims it has actual receipts of Nikola being fraudulent and deceptive, remember that Hindenburg’s primary aim is to profit from Nikola’s share losses by shorting the stock. This was despite dozens of earlier hydrogen-based aircraft meeting with similar fates. Since short selling always bets on profiting from sinking share prices—does that mean Hindenburg’s research report be trusted? “We have never seen this level of deception at a public company, especially of this size,” reads the Hindenburg report. I'm a Personal Finance Reporter for Forbes Advisor. Investors haven’t been able to get enough of the story. Ackman didn’t win big in his bet against Herbalife, though. Follow me on Twitter at @keywordkelly. The company’s shares are down another 30% or so after Milton announced his resignation. “There will be zero question about the legitimacy of Nikola after this video.”. In 2012, billionaire Bill Ackman bet $1 billion that Herbalife’s stock would tumble down to zero under the pressure of revelations regarding its predatory sales practices. According to Hindenburg Research, Lordstown is a “mirage” created by fake orders. Is the firm “shorting and distorting” Nikola for its own benefit, or is it actually providing a public service by allegedly revealing the company’s bad faith? Just before Ackman’s accusations against Herbalife, the company was priced at $23.40 a share. The company has attracted glowing press coverage of its plans to transform auto manufacturing, build a network of hydrogen fueling stations and shrink the carbon footprint of auto transportation in the U.S. The partnership announcement sent shares of NKLA up another 40%. Life on Wall Street can be nasty, brutish and short—particularly when your company is in the crosshairs of short sellers. Previously, I covered personal finance at other national web publications including Bankrate and The Penny Hoarder. pull up a 5 year chart . It also brings up the prototype fire we reported back in January. Shares of Lordstown Motors Corp fell as much as 23% on Friday after Hindenburg Research took a short position on the electric-pickup-truck maker's stock. Opinions expressed by Forbes Contributors are their own. Report Save. Activist Insight has researched hundreds of firms and put together rankings of the top shortsellers. What is clear, though, is investors should tread carefully when investing for the short-term and always evaluate companies closely before funneling money into them. Share. Hindenburg claims to have investigated the site of the second video, and shared text messages from a former Nikola employee that it claims proves the video was staged. These findings shadowed what Hindenburg describes as “growing skepticism over the functionality” of Nikola’s trucks. Hindenburg Research also highlighted that the company would be having issues that will probably postpone production to at least three years from … Lordstown Up Against SEC Probe Due To Short-Seller Hindenburg Research. When I'm not digging up the best ways to manage your money, I'm out traveling the world. Billionaire investor Bill Ackman’s long-running short bet against publicly traded weight loss company, Herbalife Nutrition (HLF), provides a cautionary example of the pitfalls of the big short. 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