Electric vehicle startup Nikola reportedly facing 2 federal inquiries
- Ben Geman, author of Axios Generate
Photo: Rafael Henrique/SOPA Images/LightRocket via Getty Images)
The electric and fuel cell truck startup Nikola is increasingly under the microscope following a short-seller's allegations that it made false statements about its tech and planned products.
Driving the news: The Financial Times reported Tuesday that the Justice Department is "making inquiries" following last week's claims by Hindenburg Research.
- The Wall Street Journal confirmed the report about inquiries from the U.S. Attorney’s Office for the Southern District of New York.
- The news follows revelations of a SEC inquiry into the Hindenburg report that called Nikola an "intricate fraud." Nikola disputes the findings.
Catch up quick: The turmoil comes on the heels of the Sept. 8 announcement that GM is taking an 11% stake in Nikola, will engineer and manufacture its Badger pickup, and supply tech for that product and its planned semitrucks.
Why it matters: The controversy comes at a time of growing investor interest in EV startups and corporate partnerships with legacy automakers.
Go deeper: Hear what Nikola's troubles mean for GM on the latest "Axios Re:Cap" podcast.