During a TV broadcast yesterday, the former hedge fund manager took on Nikola after the recent noise.
Chairman of the board and Nikola founder Trevor Milton left the board of the company on Monday. The rest of the board has approved Milton’s request, and former vice chairman of General Motors, Stephen Girsky, has been appointed new chairman.
– Too much hype
The Milton departure came after there has been a lot of noise around Nikola in recent weeks, following accusations of gross misconduct by the German analysis company Hindenburg Research. Nikola fell 19 percent on Monday, while the stock rose 3.4 percent to $ 28.51 on Tuesday.
– Even though the stock hit back, I do not like it. Since Nikola was listed, I have said that there has been too much hype and not enough substance, says Jim Cramer on CNBC.
Nikola has denied the allegations from Hindenburg. But the US Financial Services Authority, Securities and Exchange Commission (SEC), announced last week that they want to investigate Hindenburg’s accusations against the hydrogen company.
– Sell fast
Hindenburg claims to be sitting on a series of false statements from Milton. Hindenburg wrote that they have never seen a deception of this magnitude in a listed company. Nikola denies these allegations, saying they have nothing to hide.
– I do not say that the shorts in Hindenburg are necessarily right, but you have to take it seriously. Even if you think they are wrong, you have to put up with their arguments, says Cramer.
He has no doubt that one should get rid of the stock.
– When you see so many red flags, you have to sell the stock and you have to sell fast, even if you are still convinced. When you invest, the only thing that matters more than making money is not losing it. As long as you avoid losses, the gains will take care of themselves, says Cramer.
Nikola is Nel’s most important customer. Nel has said that Milton’s departure will not affect the company to any great extent.
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