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From @HindenburgRes 's latest report on $NKLA, here's how shady Trevor Milton's background is
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(Thread)
After dropping out of college in 2009, Milton created an alarm sales business and exited with $300K.
The person that bought the business said that Milton overpromised on the business's performance, causing the new owner to lose a lot of money.
The person that bought the business said that Milton overpromised on the business's performance, causing the new owner to lose a lot of money.
Interestingly, Milton's business partner, the one who had a 50/50 profit-sharing agreement with, came out with only 100K from the deal (200K less than what Milton got)
Then, he launched a classified ads company called http://uPillar.com (that failed)
Then, he launched a classified ads company called http://uPillar.com (that failed)
And then, he enters the alternative energy auto market
His startup in that field, dHybrid, was co-founded with engineer Mike Shrout. Shrout developed CNG (compressed natural gas) conversion tech for diesel engines (similar to what Hyliion $SHLL $HYLN is doing currently).
His startup in that field, dHybrid, was co-founded with engineer Mike Shrout. Shrout developed CNG (compressed natural gas) conversion tech for diesel engines (similar to what Hyliion $SHLL $HYLN is doing currently).
After launching the startup, Milton contacted the CEO of Swift Transportation and demonstrated the tech on a converted pickup truck.
Impressed, Swift got a 9% stake for $2 million and gave the company a $322,000 loan and to have 10 trucks to be equipped with the tech.
Impressed, Swift got a 9% stake for $2 million and gave the company a $322,000 loan and to have 10 trucks to be equipped with the tech.
After finding that dHybrid only delivered 5 trucks and that those trucks didn't work well, Swift sued dHybrid.
With capital running out and a pending lawsuit, Milton seek investors and told them that the swift contract was worth $250-300M. In reality, it was worth $16M.
With capital running out and a pending lawsuit, Milton seek investors and told them that the swift contract was worth $250-300M. In reality, it was worth $16M.
Then, things got worse for dHybrid
dHybrid then started seeking out a buyer for its business as the litigators continued to make progress against them. At first, Milton was able to get Sustainable Power Group LLC interested. After a month of due diligence, the buyers backed out.
dHybrid then started seeking out a buyer for its business as the litigators continued to make progress against them. At first, Milton was able to get Sustainable Power Group LLC interested. After a month of due diligence, the buyers backed out.
Why did Sustainable Power Group LLC back out?
It's because dHybrid hasn't completed the development of the product, they haven't began certifying for EPA certification, they found the lawsuit from Swift, fund falsified savings costs, and had trouble analyzing data from products.
It's because dHybrid hasn't completed the development of the product, they haven't began certifying for EPA certification, they found the lawsuit from Swift, fund falsified savings costs, and had trouble analyzing data from products.
With a buyer gone and still needing capital, Milton went to the Park City Angels, a VC group in Utah
In his pitch, he falsely claimed that he had an experienced Chief Technology Officer in his team. Interestingly, this fake CTO's experienced matched their contractor's resume.
In his pitch, he falsely claimed that he had an experienced Chief Technology Officer in his team. Interestingly, this fake CTO's experienced matched their contractor's resume.
After Milton's first alternative energy auto business collapsed, Milton and his father started another CNG tech company called dHybrid Systems (different from dHybrid).
Milton told investors that the new entity was "a continuation of dHybrid and its years.."
Milton told investors that the new entity was "a continuation of dHybrid and its years.."
In the presentation, dHybrid Systems said that they were founded in 2011 when in reality they were founded in 2012
In 2014, dHybrid Systems was acquired by Worthington Industries $WOR for $15.9 million for a 79.59% stake
Valuing dHybrid Systems at $19.9 million
In 2014, dHybrid Systems was acquired by Worthington Industries $WOR for $15.9 million for a 79.59% stake
Valuing dHybrid Systems at $19.9 million
In a 2019 interview with http://Trucks.com , for example, he claimed that his $15.9 million exit was for “much more than $20 million”
https://www.trucks.com/2019/02/18/qa-nikola-founder-trevor-milton/
https://www.trucks.com/2019/02/18/qa-nikola-founder-trevor-milton/
Interestingly, former employees talked about how they would traverse the country "in a mad dash to patch up dHybrid’s broken systems as best possible" so that the deal with $WOR would close
And here's where Nikola Motors $NKLA comes into the picture
in 2015, EVDrive and Milton made an agreement to buy Nikola's (at the time, the entity was called Bluegentech) to buy their advanced proprietary turbine technology
All thanks to the credibility that $WOR gave Milton
$NKLA https://www.slideshare.net/secret/CPnFrrz696Ia4W
All thanks to the credibility that $WOR gave Milton
$NKLA https://www.slideshare.net/secret/CPnFrrz696Ia4W
This is where the pieces of Nikola Motors starts coming together
"Trevor leveraged his Worthington role, in addition to claims of having proprietary technology to draw in partners that could collectively help piece together parts needed for Nikola’s first EV truck."
$WOR $NKLA
"Trevor leveraged his Worthington role, in addition to claims of having proprietary technology to draw in partners that could collectively help piece together parts needed for Nikola’s first EV truck."
$WOR $NKLA
In q4 2015, $WOR found problems with the dHybrid Systems deal and recorded a $2.3 million impairment and later recorded a $1.5 million warranty-related expense related to dHybrid
After getting most of the business partners needed for his trucking startup, Milton has officially formed Nikola Motors in 2016 $NKLA
Then, on May 9 of the same year they went from Bluegentech to Nikola, they announced their mission to the public. https://nikolamotor.com/press_releases/nikola-motor-company-formed-to-transform-u-s-transportation-industry-25
Then, on May 9 of the same year they went from Bluegentech to Nikola, they announced their mission to the public. https://nikolamotor.com/press_releases/nikola-motor-company-formed-to-transform-u-s-transportation-industry-25
Nikola $NKLA planned to unveil their Nikola One in December of 2016. They even said that it will be "functioning. Fully built truck"
Meanwhile, Bloomberg found that the truck at the event was a "pusher" and not a functioning truck
$NKLA https://www.bloomberg.com/news/articles/2020-06-17/nikola-s-founder-exaggerated-the-capability-of-his-debut-truck
$NKLA https://www.bloomberg.com/news/articles/2020-06-17/nikola-s-founder-exaggerated-the-capability-of-his-debut-truck
Interestingly, Nikola said that the truck in the presentation would be functional
And then he admitted that it was fake and played the story to where he never said it, hiding his mistakes in the process
$NKLA
And then he admitted that it was fake and played the story to where he never said it, hiding his mistakes in the process
$NKLA
Going back, in August 2016 Nikola Motors said that they will engineer a new paradigm in hydrogen technology
Meanwhile, former partners have said that the company had no hydrogen partners and no in-house hydrogen capabilities
And remember, Nikola today is about hydrogen
$NKLA
Meanwhile, former partners have said that the company had no hydrogen partners and no in-house hydrogen capabilities
And remember, Nikola today is about hydrogen
$NKLA
In May of 2016, Nikola offered pre-orders for their Compressed Natural Gas (CNG) trucks
In the press release, it said things like "it has engineered, developed and is finalizing assembly"
And then they abandoned it in August
$NKLA
https://nikolamotor.com/press_releases/nikola-motor-company-begins-taking-reservations-for-revolutionary-electric-semi-truck-24#:~:text=Nikola%20Motor%20Company%20Begins%20Taking%20Reservations%20for%20Revolutionary%20Electric%20Semi%2DTruck,-First%205%2C000%20orders&text=The%20first%205%2C000%20trucks%20reserved,giving%20owners%20an%20immediate%20ROI.
In the press release, it said things like "it has engineered, developed and is finalizing assembly"
And then they abandoned it in August
$NKLA
https://nikolamotor.com/press_releases/nikola-motor-company-begins-taking-reservations-for-revolutionary-electric-semi-truck-24#:~:text=Nikola%20Motor%20Company%20Begins%20Taking%20Reservations%20for%20Revolutionary%20Electric%20Semi%2DTruck,-First%205%2C000%20orders&text=The%20first%205%2C000%20trucks%20reserved,giving%20owners%20an%20immediate%20ROI.
Fun fact: the prototypes were seen to have natural gas turbines and not hydrogen technology
And there were many other additions the prototype needed to have to give the picture that it was functioning when in reality it wasn't
$NKLA
And there were many other additions the prototype needed to have to give the picture that it was functioning when in reality it wasn't
$NKLA
And remember how people were talking about the truck being filmed rolling down a hill?
Well, this video caused many to believe that the technology was real $NKLA https://twitter.com/nikolamotor/status/956576016809340928?s=20
Well, this video caused many to believe that the technology was real $NKLA https://twitter.com/nikolamotor/status/956576016809340928?s=20
Then in April 2019, Nikola $NKLA unveiled a Next-Generation Version of NZT Off-Road Vehicle
Because of manufacturing challenges, they quietly scrapped the plans
Because of manufacturing challenges, they quietly scrapped the plans
And this is where Milton is really seen as a hypocrite
In April 2019, Milton said that Nikola's HQ has solar panels on its roof tops:
$NKLA
$NKLA
Meanwhile, the Phoenix Business Journal says that there are no solar panels on the HQ's rooftops
$NKLA https://www.bizjournals.com/phoenix/news/2019/06/30/see-inside-nikolas-new-75phoenix-headquarters.html
$NKLA https://www.bizjournals.com/phoenix/news/2019/06/30/see-inside-nikolas-new-75phoenix-headquarters.html
Nikola $NKLA had dabbled into battery technology and even acquired a battery tech company named ZapGo
Later, after finding that the battery tech was fake, Nikola sued ZapGo for faking the technology.
Later, after finding that the battery tech was fake, Nikola sued ZapGo for faking the technology.
Interestingly, the CEO of ZapGo was previously found guilty for tax fraud and misused his NASA proceeds
$NKLA did poor due diligence https://www.washingtonpost.com/science/2019/04/18/man-conned-his-nasa-funded-lab-into-paying-trips-see-prostitutes-escorts-feds-say/
$NKLA did poor due diligence https://www.washingtonpost.com/science/2019/04/18/man-conned-his-nasa-funded-lab-into-paying-trips-see-prostitutes-escorts-feds-say/
And in Feburary 2020, Milton continued to hype the battery tech even though they found the battery tech from ZagGo to be worthless
For a few days, Nikola $NKLA had a partnership with Powercell. The reason being was that the terms were "unacceptable" https://www.powercell.se/en/newsroom/press-releases/detail/?releaseId=40CF208BFB55FBF5
For a few days, Nikola $NKLA had a partnership with Powercell. The reason being was that the terms were "unacceptable" https://www.powercell.se/en/newsroom/press-releases/detail/?releaseId=40CF208BFB55FBF5
And regarding Nikola's hydrogen refueling stations, know that the director of that division is his younger brother, who only has experience with the concrete business
And the head of infrastructure development only has experience at being the CEO and GM of a golf club
$NKLA
And the head of infrastructure development only has experience at being the CEO and GM of a golf club
$NKLA
Also, $NKLA Chief Engineer has a background in software development and in repairing pinball machines
And regarding their inverters, while the logo of it was covered with tape, @HindenburgRes found that Cascadia Motion, a small company in Portland, sold those inverters
And regarding their inverters, while the logo of it was covered with tape, @HindenburgRes found that Cascadia Motion, a small company in Portland, sold those inverters
And remember the Instagram Live video Nikola Motors did showcase its fast 0-60 time in 5 seconds?
Well, using a stopwatch it lasted 10 seconds
$NKLA was fooling people
Well, using a stopwatch it lasted 10 seconds
$NKLA was fooling people
And the $NKLA story gets more bizarre
Nikola's CFO resigned and sued the company, which is a red flag https://www.slideshare.net/HindenburgResearch/jonathan-spira-v-nikola/1
Nikola's CFO resigned and sued the company, which is a red flag https://www.slideshare.net/HindenburgResearch/jonathan-spira-v-nikola/1
For a period of time, Nikola $NKLA said that they had natural gas wells
And interestingly, you don't see the wording of it in their SEC filings
And interestingly, you don't see the wording of it in their SEC filings
To conclude: Nikola Motors $NKLA is one big sham
With no legit product and shady histories for both the founder and the business, this stock is one big short.
@HindenburgRes did their research well and I seriously recommend everyone to read it
With no legit product and shady histories for both the founder and the business, this stock is one big short.
@HindenburgRes did their research well and I seriously recommend everyone to read it
