Nikola Stock Downgraded, Trevor Milton Flees (NKLA to $0?) — Transcript

Full transcript

1. 0:00hey guys justin here so i have been
2. 0:01reading article after article about
3. 0:03nicholas stock over the past week
4. 0:05and things just keep getting worse now
5. 0:08it all started with the hindenburg
6. 0:09report that came out just two weeks ago
7. 0:12but since that report came out there has
8. 0:14been a ton of negative news and because
9. 0:16of all this negative news nicholas stock
10. 0:18has plunged
11. 0:1860 and while none of the revelations
12. 0:21about nicholas stock are surprising to
13. 0:23me
14. 0:23i will say that the speed at which
15. 0:25things are going downhill for nicola
16. 0:27is not a good sign by the way hit the
17. 0:29like button if you got that pun
18. 0:31but no seriously i predicted in my last
19. 0:33video on nikola stock that it would take
20. 0:35three to five years for nicola to go
21. 0:37bankrupt
22. 0:38but now nicola looks like they are at a
23. 0:40tipping point and if they don't stop the
24. 0:42bleeding somehow
25. 0:43then i think we could see nicola either
26. 0:45get de-listed or go bankrupt
27. 0:47as early as next year in fact if we
28. 0:49compared the latest price targets for
29. 0:51nikola stock with the price targets from
30. 0:53two weeks ago
31. 0:54it is not pretty two weeks ago the
32. 0:57median price target was a respectable 49
33. 0:59a share but now the median price target
34. 1:02is only
35. 1:0329 and what's worse the new low price
36. 1:06target is now down to 15
37. 1:08a share which two weeks ago the low
38. 1:10price target was 45 dollars a share
39. 1:13so basically analysts have cut their
40. 1:15price targets for nicola by
41. 1:17over 50 percent in just the past two
42. 1:19weeks
43. 1:20also the analysts over at jp morgan who
44. 1:22have been historically bullish on nikola
45. 1:24stock
46. 1:25recently lowered their price target as
47. 1:27well so let's go over a quick timeline
48. 1:29of events for those of you who don't
49. 1:31know what has happened
50. 1:33first the gm partnership was announced
51. 1:35on september 8th
52. 1:36leading nicholas stock to jump 40 in one
53. 1:39day
54. 1:40then two days later on the 10th the
55. 1:42hindenburg report was released
56. 1:44which caused nicolas stock to drop big
57. 1:46then four days later on the 14th
58. 1:48nicola released a report refuting the
59. 1:51hindenburg accusations
60. 1:52and you would think that this would have
61. 1:54been a good thing but unfortunately
62. 1:56instead of refuting the claims
63. 1:58it appears that nicola actually
64. 1:59confirmed them and i talked about this
65. 2:01extensively in my last video but nicola
66. 2:04actually admitted that it never had a
67. 2:05fully functioning
68. 2:06nicola one semi-truck this means that
69. 2:09nicola had lied to investors at its 2016
70. 2:12nikola world event
71. 2:13and it means that they lied again in
72. 2:152018 when they filmed the
73. 2:17nicola one in motion video now i should
74. 2:20clarify that in that video nicola never
75. 2:22claimed the nikola one was being powered
76. 2:24by itself
77. 2:25so really it's my fault i should have
78. 2:26never assumed that it was being powered
79. 2:28by itself
80. 2:29but honestly i was not the only one that
81. 2:31was deceived by the nikola one video
82. 2:33since it generated quite a bit of
83. 2:35interest and this interest was not only
84. 2:38from big investors but also small
85. 2:39investors like you
86. 2:40and me in fact by deceiving investors
87. 2:43with the nikola one
88. 2:44nicola was able to raise billions of
89. 2:46dollars and convinced established
90. 2:48automakers like bosch
91. 2:50and cnh to partner with them and it is
92. 2:53highly unlikely that these partnerships
93. 2:54would have happened
94. 2:56without nicholas deceptive tactics but
95. 2:58the interesting thing is that despite
96. 3:00nicolas admission of fraud
97. 3:02their partners have actually stood by
98. 3:04their side which is not too surprising
99. 3:06but we will get into that later in the
100. 3:08video getting back to the timeline
101. 3:10of events after nicola released their
102. 3:12counter report to the hindenburg report
103. 3:14the sec and the u.s department of
104. 3:16justice announced they were launching
105. 3:18formal investigations
106. 3:19which of course spooked investors
107. 3:21further and caused the stock to drop
108. 3:23even more but despite this news trevor
109. 3:25milton assured investors that everything
110. 3:27was fine
111. 3:28and that there was nothing to be worried
112. 3:30about however it appears everything was
113. 3:32not all right because shortly after
114. 3:34reassuring investors
115. 3:36milton disappeared and there were even
116. 3:38reports that he had left the country
117. 3:40which i could neither confirm nor deny
118. 3:42through my research
119. 3:44but the point is that he disappeared
120. 3:46after this things kept getting weirder
121. 3:48shortly after disappearing trevor
122. 3:50announced he was stepping down from his
123. 3:52position at nicola
124. 3:54and then only a few days later his
125. 3:55personal twitter account was permanently
126. 3:57deleted
127. 3:58which honestly really surprised me
128. 4:00however before his twitter account was
129. 4:02deleted
130. 4:03i was able to screen grab this tweet
131. 4:05from september 10th
132. 4:06this tweet is important because it shows
133. 4:08that milton had no plans of stepping
134. 4:10down
135. 4:11and the tweet says this cowards run
136. 4:14leaders stay
137. 4:15and fight for integrity hindenburg is
138. 4:17only making people love us more for
139. 4:19trying to destroy us
140. 4:20it will take the rest of the day to
141. 4:22address the one-sided false claims
142. 4:24but i will put out a detailed report to
143. 4:26address it
144. 4:27in the meantime troll on so this was
145. 4:29posted just two days after the
146. 4:31hindenburg report came out
147. 4:33and it shows that milton had no
148. 4:34intentions of stepping down but instead
149. 4:36was ready to
150. 4:37fight so the fact that he did step down
151. 4:39shows me that something big is happening
152. 4:41behind the scenes that we don't yet know
153. 4:43about and this could include the
154. 4:45possibility of formal charges against
155. 4:47nicola
156. 4:48and trevor milton but like i said
157. 4:51nothing like that has been reported yet
158. 4:53so the big question that nicola
159. 4:55investors are asking themselves is what
160. 4:57happens now to some trevor stepping down
161. 5:00was a big blow to nicola
162. 5:02and for others they seem to be shrugging
163. 5:03it off as if it were no big deal at all
164. 5:06but let's look at nicola's own words
165. 5:08when it comes to trevor milton's impact
166. 5:10at nicola this is a statement from
167. 5:12nicola's sec
168. 5:13filing from when it went public and it
169. 5:15reads
170. 5:16we are highly dependent on the services
171. 5:18of trevor r milton our executive
172. 5:20chairman
173. 5:21and largest stockholder mr milton is the
174. 5:24source of many
175. 5:25if not most of the ideas and executions
176. 5:27driving nicola
177. 5:28if mr milton were to discontinue his
178. 5:31services to us
179. 5:32due to death disability or any other
180. 5:34reason we would be significantly
181. 5:36disadvantaged
182. 5:37so there you go despite what people are
183. 5:39saying it appears that
184. 5:40according to nicola themselves trevor
185. 5:42milton was highly valuable to nicola
186. 5:45now of course the question i have after
187. 5:47reading this statement is
188. 5:49who wrote this did a random employee
189. 5:51write this or was milton involved in
190. 5:53crafting this statement
191. 5:54we have no way of knowing but i
192. 5:56personally wouldn't be surprised if
193. 5:57trevor actually wrote this himself
194. 5:59which would mean that it might not be
195. 6:01the most accurate assessment
196. 6:03but whether or not this was an unbiased
197. 6:05accurate statement
198. 6:06or an egotistical statement written by
199. 6:08trevor himself
200. 6:10i do think there is some truth in it for
201. 6:12one milton did so many interviews that
202. 6:14people know him as the face of
203. 6:16nicola and i would wager that not many
204. 6:18people can name any of the other
205. 6:19executives who work for nicola
206. 6:21other than milton also despite being a
207. 6:24liar
208. 6:24milton is a really good salesman his
209. 6:26high energy and the ability to know what
210. 6:28investors wanted to hear
211. 6:30was one of the reasons he got himself
212. 6:31into trouble but it was also the reason
213. 6:34that you and i even know about nikola
214. 6:36today
215. 6:37therefore some would say that milton
216. 6:38simply did what he had to do
217. 6:41in order to make nicola a successful
218. 6:42company but other than nicola's damaged
219. 6:45reputation and brand
220. 6:46the bigger problem for nicola now is
221. 6:48avoiding sliding back into obscurity
222. 6:51without someone to give interviews to
223. 6:52the major media outlets
224. 6:54and make bold visionary statements
225. 6:56nicolo runs the risk of losing publicity
226. 6:59and honestly without trevor milton's
227. 7:01visionary leadership nicola is not the
228. 7:03same stock
229. 7:04in fact a 2016 study from bain and
230. 7:06company
231. 7:07found that stocks of companies where the
232. 7:09original founder was still involved had
233. 7:11returns that were three times
234. 7:13higher than the s p 500 so make no
235. 7:16mistake
236. 7:17for nikola to survive they will need to
237. 7:19find a new visionary leader
238. 7:21one who is going to step up and become
239. 7:23the new face of
240. 7:24nicola now luckily for nicola their big
241. 7:27partners are sticking with them
242. 7:28these partners include bosch cnh and gm
243. 7:32but it appears that nikola is now having
244. 7:34issues securing a partner to help them
245. 7:36build out their hydrogen fueling
246. 7:37stations
247. 7:38which is a big problem and it's a
248. 7:40problem because nikola's ability to sell
249. 7:42vehicles is tied directly to their
250. 7:44ability to build hydrogen fueling
251. 7:45stations
252. 7:46and it appears that the hindenburg
253. 7:47report played a role in this negative
254. 7:50news
255. 7:50executives at nicola felt like they were
256. 7:52close to finalizing an agreement with at
257. 7:54least
258. 7:55one major energy firm but then the
259. 7:57hindenburg report came out
260. 7:58and since that report was released big
261. 8:00players like bp
262. 8:02have put any potential deals on hold
263. 8:04which when you think about it
264. 8:06makes a lot of sense hydrogen fueling
265. 8:08stations are very expensive and the last
266. 8:10thing any of these energy companies want
267. 8:12to do
268. 8:12is invest billions of dollars into
269. 8:14fueling stations that won't be used for
270. 8:16a long time
271. 8:17basically the hindenburg report casted
272. 8:20doubt on the readiness of nicholas
273. 8:21technology
274. 8:22and therefore these big energy companies
275. 8:24are reevaluating their
276. 8:26plans but despite all the negative news
277. 8:28there are some positive developments for
278. 8:30nikola stock
279. 8:31for one cnh has announced they are
280. 8:33working on prototypes of the nikola tray
281. 8:35and they plan to start testing them
282. 8:37later this year and if all goes well
283. 8:39cnh will plan on manufacturing the
284. 8:41trucks by the end of 2021
285. 8:43also with the help of bosch the nikola 2
286. 8:46prototypes have been successfully built
287. 8:48and they appear to actually be fully
288. 8:50functioning this time
289. 8:52and just to clarify when i say the words
290. 8:54fully functioning
291. 8:55i mean they actually propel themselves
292. 8:57which
293. 8:58is a big improvement over the nikola
294. 8:59one's capabilities
295. 9:01but unfortunately even this good news
296. 9:03comes with some bad news
297. 9:05through my extensive research i have
298. 9:06failed to find any significant
299. 9:08technology that nicola is providing to
300. 9:10make their trucks run
301. 9:12nikola is getting a ton of critical
302. 9:13components for the powertrain from bosch
303. 9:16and without them they wouldn't have been
304. 9:17able to make a working prototype
305. 9:19also gm is engineering and building the
306. 9:21badger pickup truck
307. 9:22completely on their own and will be
308. 9:24using their own battery and fuel cell
309. 9:27tech
310. 9:27on top of that nikola will also have to
311. 9:29pay gm 700 million dollars to help cover
312. 9:32manufacturing costs and the trucks will
313. 9:34be built at one of gm's factories
314. 9:36not a nicola factory which nikola
315. 9:39doesn't really have any factories so
316. 9:41i guess i don't really need to mention
317. 9:42that also just last week nicola
318. 9:44announced they would be relying on
319. 9:46battery maker
320. 9:47romeo to make battery packs for their
321. 9:49nikola tray semi-truck
322. 9:51so at the end of the day it is a good
323. 9:53thing that nikola has
324. 9:54working prototypes but it is unclear
325. 9:57what technology
326. 9:58if any nicola brings to the table and
327. 10:01honestly based on the deals nicola has
328. 10:03made it appears they have
329. 10:04zero proprietary technology which is not
330. 10:07a good sign
331. 10:08as an investor looking at nikola stock
332. 10:11all of this reinforces my earlier point
333. 10:13about how vital trevor milton was
334. 10:15to nicola in my opinion the most
335. 10:18valuable thing that nicola brought to
336. 10:19the table
337. 10:20was branding and this brand recognition
338. 10:22was all due to trevor milton's marketing
339. 10:24efforts
340. 10:25to put into perspective how valuable
341. 10:27branding can be gm spends three billion
342. 10:29dollars a year
343. 10:30on advertising just in the u.s alone
344. 10:33nicola on the other hand has been able
345. 10:35to build a valuable brand without
346. 10:37spending much money
347. 10:38thanks to milton's efforts so it is
348. 10:41entirely possible that nicholas partners
349. 10:42don't care that they are doing most of
350. 10:44the heavy lifting since nicola's brand
351. 10:47is the most valuable part but now that
352. 10:50milton is gone and nikola's brand has
353. 10:52been
354. 10:52tarnished it really makes me question
355. 10:54what value nicola provides to investors
356. 10:57they have no proprietary technology
357. 11:00their visionary leader is gone
358. 11:01and they can't find a partner to help
359. 11:03them build their hydrogen fueling
360. 11:04stations
361. 11:05on top of that they are in the midst of
362. 11:07an sec investigation
363. 11:09which most likely will result in charges
364. 11:11being filed
365. 11:12so for me it is hard to find a
366. 11:13compelling investment thesis
367. 11:15for nicholas stock right now but hey
368. 11:17what do i know
369. 11:18i am just a random youtuber who has been
370. 11:20warning people against nikola stock from
371. 11:22day one
372. 11:23instead of listening to me you should be
373. 11:25listening to the brilliant analysts over
374. 11:27at jpmorgan
375. 11:28despite all of the negative news this
376. 11:30article from september 21st
377. 11:32shows that jp morgan analysts are still
378. 11:34recommending that you buy nicolas stock
379. 11:36right now
380. 11:38which seems crazy to me that they would
381. 11:39recommend a stock like nicola
382. 11:41but hey maybe there's something that
383. 11:43they know that we do not
384. 11:45so let's see what their reasoning is
385. 11:47they say in this article
386. 11:48that we believe nicolas stock price may
387. 11:50not fully account
388. 11:52for successful execution of the
389. 11:54multi-year growth strategy which could
390. 11:56yield earnings of 1.6 billion dollars
391. 11:59by 2027. guys this right here is why you
392. 12:02should completely ignore these jpmorgan
393. 12:04analysts
394. 12:05anyone can tell you that nicholas future
395. 12:07success depends on their ability to
396. 12:09execute
397. 12:10it's common sense the problem with
398. 12:12nikola stock
399. 12:13and it has been the problem since the
400. 12:15beginning is that they have shown
401. 12:17no ability to execute up to this point
402. 12:20so to say all they need to do is execute
403. 12:22is like me
404. 12:23handing a five foot guy a basketball and
405. 12:25telling him all he has to do is dunk it
406. 12:28could he do it sure but is it likely to
407. 12:30happen
408. 12:32no and honestly it seems like nicola has
409. 12:35no ability to execute without a
410. 12:37reputable partner to help them out
411. 12:39so the fact that these analysts are
412. 12:41still recommending nicholas stock
413. 12:43shows that they think you're an idiot
414. 12:45and the fact that they have to look
415. 12:47all the way out to 2027 to justify
416. 12:49buying nikola stock
417. 12:50right now is insane i personally can't
418. 12:54think of why anyone would take that risk
419. 12:55when there are literally hundreds of
420. 12:57other profitable stocks
421. 12:58out there you could buy right now in my
422. 13:01opinion it seems deceptive
423. 13:03and reckless that analysts would make
424. 13:05statements like this
425. 13:06but this is not new behavior from the
426. 13:07analysts of jpmorgan
427. 13:09and it shows the dangers of blindly
428. 13:11listening to analysts without doing your
429. 13:12own
430. 13:13research two different times in the past
431. 13:15two months
432. 13:16these same analysts have released
433. 13:18articles recommending nicholas stock
434. 13:20and what is curious to me is that these
435. 13:23articles were released
436. 13:24literally the day after bad news was
437. 13:27released on nicholas stock
438. 13:29and these positive articles were
439. 13:30basically puff pieces that said the same
440. 13:32thing this newest article
441. 13:34is saying so if you can't tell i'm
442. 13:35really frustrated with these analysts
443. 13:37because they are not being honest with
444. 13:39you
445. 13:39and some of you have been duped into
446. 13:40buying nicholas stock by reading these
447. 13:42analyst reports
448. 13:44which if you did means that you have
449. 13:46lost quite a bit of money
450. 13:47and i personally hate losing money and i
451. 13:49don't want you to lose money
452. 13:51either so at the end of the day there is
453. 13:53no reason any retail investors should be
454. 13:55buying nicholas stock as a long-term
455. 13:57investment right now it is just too
456. 13:59risky
457. 14:00especially since bankruptcy is looking
458. 14:02very possible in the near future
459. 14:04but that being said i 100 support
460. 14:07renewable technology companies
461. 14:08and i would love to see nicola come back
462. 14:11from this scandal
463. 14:12and turn into a successful company but
464. 14:14throwing money at them right now
465. 14:16isn't going to help them at this point
466. 14:17and honestly nicholas problems have
467. 14:19nothing to do with lack of capital but
468. 14:21rather lack of execution
469. 14:23so in order for nicola to be successful
470. 14:25they need to show that they can execute
471. 14:27and until then it's best to stay away
472. 14:29from nicholas stock
473. 14:31if you guys found this video
474. 14:32informational make sure to hit the
475. 14:34subscribe button
476. 14:35also drop a comment below with your
477. 14:36thoughts do you think nicola will be
478. 14:38able to make it through this
479. 14:39or do you think they will go bankrupt
480. 14:41let me know below
481. 14:42also check out my channel where i have a
482. 14:44lot of other videos that i think you
483. 14:46will find interesting
484. 14:47and informational and with that thanks
485. 14:49so much for watching
486. 14:50and i'll see you guys in the next one