The tussle has prompted the SEC to examine Hindenburg's claims to determine whether Nikola may have violated securities laws,said the people who asked not to be named because the inquiry isn't public. The regulator's review is preliminary and may not lead to allegations of wrongdoing.
Shares of the company fell as much as 7.7 per cent in post-market trading Monday (US time),down from its closing price of $US35.79.
Nikola has encouraged the SEC to get involved. As its stock tumbled last week after the release of the short seller report,the company said it reached out to the SEC to discuss its issues with the Hindenburg report,and ultimately held a call with agency officials on the morning of September 11. Nikola says Hindenburg is attempting to profit from a"manufactured decline"in its share price.
"Nikola has contacted and briefed the US Securities and Exchange Commission regarding Nikola's concerns pertaining to the Hindenburg report,"the company said in a Monday statement."Nikola intends to fully cooperate with the SEC regarding its inquiry into these matters."
SEC spokeswoman Judith Burns declined to comment.
Hindenburg Founder Nathan Anderson said in a statement that he's"encouraged that regulators are examining the situation."