Nikola Motors is a Fraud

Hydrogen probably isn’t the future of vehicles. It’s electric. Nikola hasn’t sold a single vehicle. They think they can be cash positive by 2024, and with a heavily outsourced business model, this is a nightmare waiting to happen for investors. Investors who, in the age of Robinhood, are willing to pay $70 for this stock.

Trevor Milton is basically a Billionaire fraud. Hydrogen is the most abundant element in the universe. But using it with fuel cells might not be the brightest idea. Using hydrogen to store energy can never be as efficient as storing electricity in a battery, according to its critics.

Lyft recently pledged its entire fleet would be electric by 2030. China would be huge for the on-boarding away from fossil fuels and into green energy. There’s no way Nikola could catch Tesla, even if it’s technology was sound. Trevor has already been caught though. Nikola’s founder apparently exaggerated the capability of his debut truck. That’s a major red flag.

With so many trucking startups and with the advent of autonomous driving, why would Nikola Motors have any hope of being competitive? As Forbes points out some leading hydrogen stocks have not fared well historically since the advent of Tesla. Plug plummeted 98% from March 2009 to February 2013, while the S&P 500 rallied more than 120% over the same stretch.

However in recent years suddenly Nikola Motors, Plug Power, Ballard Power, Bloom Energy and Sun Hydrogen $HYSR, are all in the race. Can EVs really have any rivalry with hydrogen vehicles? There’s not much evidence to say this rivalry is even real or likely. Nikola Motors is worth $23 billion despite zero sales or revenue. This means Trevor is likely a fraud of the worst kind. He’s a billionaire con artist.

Milton is not exactly a founder with a stunning history of success. While Tesla has its eyes on a battery powered semi truck, Nikola is eyeing hydrogen fuel cells. It’s that American duopoly story where the rich can profit both ways. In the imaginary future where China does not disrupt America, is Trevor supposed to be like Elon?

A 2017 survey of 1,000 global auto executives concluded hydrogen fuel cell technology will ultimately outperform battery-powered electric vehicles. Just three years later with the arrival of companies like Tesla, Nio, Rivian and others, it seems almost unthinkable.

Fuel cell electric vehicles (FCEVs) combine hydrogen stored in a tank with oxygen from the air to produce electricity, with water vapor as the by product.Nikola’s vision is to disrupt the $1.2 trillion semi truck market. Although it has secured 14,000 pre-orders, you could argue it was the most hated hydrogen stock out there. It has no cash deposits, nothing. It’s a Robinhood train wreck waiting to happen and a favorite of shorts in June, 2020.

Did we learn nothing from Uber, WeWork and the kind of doom lack of profitability of even Netflix? Retail investors are getting hoodwinked by another con-artist CEO. Nikola Motors, an electric truck maker that wants to eventually go after both Tesla and the freight market, is still months away from delivering its first products.

Who is the loser in all of this? We all are. It’s dubious business at best. It’s Twitter hacking. It’s exploiting the vulnerable young male Robinhood investor who is clueless.

Trevor Milton is an American billionaire businessman, executive chairman and founder of Nikola Motor Company. He is also a con artist. As history is our witness. Can I ride in your Badger truck?