Nikola Motor Company

Nikola’s talks with energy firms stopped after short-seller report

Nikola Corp’s talks with energy firms including BP PLC to construct hydrogen-refueling stations have been stopped after a short-seller’s allegations that the electric automaker misled investors, the Wall Street Journal reported.

Potential partners have been reluctant to move forward in the middle of the heightened scrutiny, but a deal could still come together, the report said on Wednesday, citing people knowledgeable about the matter.

Nikola and BP did not immediately respond to requests for comment made by Reuters.

The electric-truck maker’s shares dropped again on Wednesday, dropping 26% to $21.15.

In a report two weeks ago, short-seller Hindenburg Research said it had evidence to show Nikola and its founder Trevor Milton made false claims regarding the company’s proprietary technology to form partnerships with automakers.

After the allegations, Milton quit, but Nikola’s Chief Financial Officer Kim Brady said on Tuesday the company has the support of all its present automotive partners.

Nikola has publicly declined the accusations and has threatened to take legal action against Hindenburg.

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