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Electric Truck Manufacturer "Nikola" Pays US$125 Million In Fines To The SEC


Nikola (NKLA.US), a newly created electric truck manufacturer in the United States, was once known as the "Tesla in the truck industry". Its stock price was close to $100. However, the stock price collapsed due to bad news. On December 21, Nikola agreed to pay a $125 million fine and reached a fraud settlement with the US Securities and Exchange Commission (SEC). The Wall Street Journal and other foreign media reported that Nikola issued a press release on the 21st to announce that it had reached a settlement with the SEC and paid a civil penalty of US$125 million in five installments within two years. The first installment will be paid at the end of 2021, and the rest will be paid every six months. Pay once and pay in full in 2023. In September 2020, Nikola announced a video about the actual road of an electric truck, which made the outside world optimistic that Nikola will compete with Tesla. However, the short-selling agency Hindenburg Research subsequently issued a report, accusing Nikola of exaggerating the technology and that the truck was in fact only slid down from the height of the slope. A few days later, Trevor Milton, the founder of Nikola, also resigned on September 21, when the stock price fell 19.33% on hearing the news. Nikola was investigated by the US SEC and the Department of Justice, and the automobile manufacturer General Motors (GM)'s plan to acquire a stake in Nikola fell through. After 15 months of investigation, Nikola agreed to a settlement, but did not admit or deny the SEC's allegations of fraud. He only said that he was happy to resolve the matter and would ask the founder and former CEO Milton to compensate the fine and related losses.
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