Nikola Hype Collapses, Shares Plunge, CEO Out

Posted by Ed 28 days ago
This whole Nikola phenomenon was only possible in a market gone willfully blind and nuts.
Shares of the electric truck maker Nikola that hasn’t made a single truck — not even a working prototype that uses its own technology — started trading on June 4, 2020, through a reverse merger with special-purpose acquisition company (SPAC) VectoIQ Holdings – the boom in SPACs being another phenomenon that shows how nuts this market has gotten.
By June 9, Nikola’s market capitalization had vaulted to $29 billion as day-trader fans were going nuts over it, trying to get rich quick on this supernatural phenomenon.

Then the collapse began, the collapse in every aspect, including the collapse of hype.

This morning, the company announced in an astounding SEC filing that CEO and founder Trevor Milton, who is immersed in fraud allegations, was out, and the way it was done, namely effective yesterday, September 20, suggests that this was an orchestrated firing over the weekend, dressed up as “voluntary.” Some excerpts from the SEC filing: 

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Ed 28 days ago 

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Ed 28 days ago
And in spite of all of this ...  the company still has a market cap of 10B+ 
I am in the wrong business! 

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Ed 26 days ago
And then there is this:
“Robinhood Traders” Trigger Massive Idiocy on Scheme by Nasdaq-Listed Chinese Penny Stock that Skyrocketed 4,387% & Collapsed by Two-Thirds in Just One Day

The Nasdaq might be down 12% from its high on September 2, and Apple might be down 21% from its high on September 1. But the day-trader nuttiness – the new technical terms is “Robinhood traders” though they may trade on any platform, not just on Robinhood – isn’t letting up, and hedge funds might still be trying to front-run them and fleece them for a quick buck.

And that’s a huge temptation for a tiny Chinese company that installs solar-panel projects in various countries, with just $97 million in annual revenues in 2019, and nothing but annual losses going back years, whose penny stock, issued by a shell company in the Cayman Islands, is traded on the Nasdaq.

t received a delisting notice on March 23 because its shares had been below $1 for 30 days in a row and because its market cap had dropped below $15 million. Given the Pandemic, the Nasdaq gave it till December to regain compliance.

And so now the company launched this scheme that ruthlessly took advantage of these “Robinhood traders” to drive up its share price – and boy, did the Robinhood traders blow our ears off today, “literally,” so to speak 

This is how it worked: SPI Energy, headquartered in Hong Kong, issued a press release this morning in which it said that it – the tiny solar-panel project installer – would launch an EV company, called EdisonFuture, and suddenly manufacture EVs.

OK, there is no car, no prototype, no technology, no capital to develop anything, no nothing. In normal times, it would have been laughed out of the room.

But Robinhood traders saw to it that these are not normal times. Upon the announcement, its shares spiked by 4,387% from $1.04 at the close yesterday to $46.67 at 2:06 pm today, for just the briefest moment before collapsing by 71%, giving up over two-thirds of those gains and closing at $13.28. 

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Ed 26 days ago
BREAKING NEWS - AsiaXPAT MD Announces Launch of AX1 Electric Vehicle
AsiaXPAT is now valued at USD10 billion dollars after confirming it will have a prototype of it's new luxury EV..... etc...
Rumours were circulating in Hong Kong that AsiaXPAT was also launching a new cryptocurrency (AXC) and that Ed is on the cusp of releasing a Covid vaccine
AX Ed confirms all of the above and states 'We have just purchased the following...' 

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