Why Nikola Shares Lost About Half Their Value in September

Shares of electric and fuel cell truck manufacturer Nikola (NASDAQ: NKLA) were driving in the fast lane at the end of August, more than doubling since the company went public earlier in the year. But accusations from a short-seller -- and a corporate reaction suggesting those allegations were at least partly true -- ran the stock off the road in September.

Shares of Nikola fell 49.8% for the month, according to data provided by S&P Global Market Intelligence, and were off more than 60% from when the short report was released.

Nikola is part of a new generation of green-focused auto stocks that have captured investors' imaginations, but a report issued by Hindenburg Research on Sept. 10 took the charge out of Nikola's battery. In a detailed report, Hindenburg accused Nikola of being "an intricate fraud built on dozens of lies."

Source Fool.com