Nikola's Finance Chief Defends Business Model--Update
September 22 2020 - 4:33PM
Dow Jones News
By Mike Colias
A Nikola Corp. executive defended the electric-truck firm's
technology and business plan, telling an investor conference that
its partners are sticking with the startup despite the departure on
Monday of its high-profile founder and chairman.
"Nothing has changed," Kim Brady, Nikola's chief financial
officer, told investors during a virtual conference hosted by
Evercore ISI. "We recommend that investors really focus on the
future and what we have delivered and what we're going to
deliver."
Nikola, a Phoenix-based startup with backing from General Motors
Co., Robert Bosch GmBH and other big names in the manufacturing
sector, has come under scrutiny in recent weeks following
allegations it misled investors about the progress of its
technology.
Nikola founder Trevor Milton stepped down from his role as
executive chairman Sunday, saying he wanted the focus of the
company to be on the business, not him. He was replaced by Stephen
Girsky, a former GM executive and Nikola director who is well-known
in the auto industry.
The allegations outlined in a short seller's report released
earlier this month have raised questions among investors and
analysts about whether Nikola's partner companies did their due
diligence.
Mr. Brady, responding to such concerns, said Nikola was
well-vetted, and that Bosch, for example, sent an "army" of
engineers to assess the company and its technology before making
its investment.
Nikola has also called the report by Hindenburg Research
false.
Write to Mike Colias at Mike.Colias@wsj.com
(END) Dow Jones Newswires
September 22, 2020 16:18 ET (20:18 GMT)
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