← Back to context

Comment by paulpan

4 years ago

Anyone else getting Theranos vibes? As others have stated here, Hindenburgresearch is a known short-seller and so has an self interest to drive down the stock price of Nikola.

Also it was only yesterday that GM announced taking an 11% in the company for $2B. Surely GM has done their due diligence before throwing a couple of billions in? https://www.cnn.com/2020/09/08/business/nikola-gm-badger-ele...

That all said, everyone also thought Theranos was legitimate until they were exposed to be not.

20 comments

paulpan

Reply
yangchi  4 years ago

I think you read the $2B upside down. Nikola paid GM $2B worth of stocks (11% of the company) to have GM manufacture its vehicles, not the other way around

  • paulpan  4 years ago

    You're right I misread it - Nikola is paying GM. Sounds like a no-brainer for GM to accept.

    • stu2b50  4 years ago

      Worst case, and let's be honest, modal case, Nikola goes under and GM has tech and parts that they can just use on their own anyway in their electric vehicles.

      7 replies →

  • catominor  4 years ago

    In addition to $700M from Nikola to cover the expenses of the work that GM is supposed/going to do for them.

kortilla  4 years ago

> Hindenburgresearch is a known short-seller and so has an self interest to drive down the stock price of Nikola.

Short sellers don’t really have an interest to lie though. If it doesn’t look like there is really a fire, it’s much better to close the position and hunt for a new target rather than trying to make it seem like a problem when there isn’t. Lies don’t help short sellers because they present a legal risk and a financial risk (the market steam rolling them as they are seen through).

cj  4 years ago

> Anyone else getting Theranos vibes?

GM + Nikola = Theranos + Walgreens

Big Co partnership !== legitimacy

kolbe  4 years ago

> Surely GM has done their due diligence before throwing a couple of billions in?

I'm not sure there's any signal embedded in the knowledge that a company as incompetent as GM has done due diligence.

ecf  4 years ago

There is no rhyme or reason with GM. They’re completely incapable of innovating by themself in the electric or self driving space so they’re just throwing all their R&D budget into acquisitions and partnerships.

Started with Cruise, now Nikola, and it will continue until they’re bankrupt.

hn_throwaway_99  4 years ago

Absolutely. I also see the same FOMO dynamics at play. In Theranos' case a huge part of it was wanting to support "the female Steve Jobs". In Nikola's case it's not wanting to be left behind in auto tech while Tesla takes the lead.

nickik  4 years ago

The Theranos founder lived in a small apartment, while Trevor Milton built the biggest house in Utah.

Edit: Apparently what I said is incorrect about Theranos. I have heard this but I have never made a study of the company. So it might well not be correct or only for a limited time.

I'm pretty sure I am correct about Mitons house.