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Nikola stock falls 25% as the company faces new fraud allegations

Enlarge / Nikola chairman Trevor Milton unveils the Nikola One truck in December 2016.Nikola
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Enlarge / Nikola chairman Trevor Milton unveils the Nikola One truck in December 2016.Nikola

Stock in electric truck startup Nikola has plunged for the second straight day after a short-selling investment firm published a bombshell report alleging that the company's December 2016 unveiling of the Nikola One truck was a brazen fraud. Nikola's stock lost 11 percent on Thursday and is down an additional 15 percent in Friday morning trading.

At the December 2016, event, Nikola chairman Trevor Milton repeatedly described the truck as fully functional. But that wasn't quite true, as Milton admitted to Bloomberg earlier this year. The supposedly hydrogen-powered truck didn't have a hydrogen fuel cell, nor did it have the motors and gears required to drive the wheels. Milton claimed the parts had been taken out of the truck for safety reasons.

The new report from Hindenburg Research claims that the scale of Nikola's deception was even greater than was previously known. The firm claims that the prototype's supposedly functional dashboard display was powered by an extension cord snaking up from under the stage.

Nikola allegedly never had a working prototype prior to the presentation. An anonymous source provided Hindenburg with a late 2017 text message exchange in which a Nikola employee claimed that "we haven't touched the truck since the show." He added that he "can't imagine how much work it would take to get that to run."

“Let it roll”

Hindenburg's most explosive allegation focuses on a January 2018 video showing the Nikola One truck supposedly driving on a highway. The video helped to silence those who questioned whether the Nikola One was functional. In a text message exchange reproduced in the Hindenburg report, an employee said he was told that Nikola planned to "tow it to the top of a super low grade hill and let it roll."

Hindenburg says it has located the spot where the video was filmed: a two-mile stretch of road near Grantsville, Utah with a consistent 3 percent grade. With a camera at the right angle, the ground looks flat, but it's actually steep enough for a vehicle to pick up significant speed. A Hindenburg investigator took an SUV to the top of the hill, put it in neutral, and it reached a speed of 56 miles per hour.

Hindenburg's allegations came at an awkward time for Nikola: just two days after Nikola announced a landmark deal with GM. Under that deal, GM will build Nikola's Badger pickup truck—as well as supplying batteries. It's unclear what Nikola brought to the deal besides a brand name and some cash.

To be clear, Hindenburg is far from being an impartial observer. The firm has taken a short position in Nikola's stock and hence has a strong financial interest in discrediting the company. So the firm's claims should be viewed with skepticism.

We should also note that there's little doubt that Nikola has a working prototype of its newer Nikola Two truck. The company has published multiple videos of outsiders being given test rides in the Nikola Two.

Nikolas non-response

Trevor Milton, Nikola's founder and executive chairman, wasted no time in denouncing the Hindenburg report.

"Hindenburg is only making people love us more for trying to destroy us," Milton tweeted on Thursday morning. "It will take the rest of the day to address the one sided false claims, but I will put out a detail report to address it."

Around dinner time, Milton tweeted that "[i]t's taken longer to respond to the bull crap" and vowed to "work through the night" on a rebuttal. A few hours later he Read More – Source

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Twitter Blue subscription service launches in Australia and Canada

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Twitter is launching its new subscription service, Twitter Blue, in Australia and Canada on Thursday.

The paid-for extra service will add features such as an “undo tweet” button, bookmarks, and a reader mode, Twitter said.

The limited launch is designed to “gain a deeper understanding” of what customers are looking for.

But the company also said the free-to-use version of the platform would also remain.

“We’ve heard from the people that use Twitter a lot, and we mean a lot, that we don’t always build power features that meet their needs,” the company said in a statement.

“We took this feedback to heart, and are developing and iterating upon a solution that will give the people who use Twitter the most what they are looking for: access to exclusive features and perks that will take their experience on Twitter to the next level.”

Twitter said the new subscription was not designed to undermine the free experience, but to offer “enhanced and complementary” features “for those who want it”.

It will cost $3.49 in Canadian dollars and $4.49 in Australian dollars per month, Twitter said.

No date has been announced for other countries, but previous listings in mobile app stores have suggested it will eventually cost $2.99 in the US and £2.49 in the UK.

Blue perks

Twitter said subscribers will get “perks” – giving examples such as customisable app icons for phone home screens and what it calls “fun colour themes” for the app.

But they will also have access to a “dedicated” customer support, the company says.

The additional features that Twitter says were inspired by user requests include:

  • Bookmark folders, designed to help users organise saved tweets more easily
  • Undo tweet, which will let users set a timer of up to 30 seconds after posting before it appears publicly – to allow quick correction of obvious mistakes
  • Reader mode, which turns long threads of tweets into easier-to-read text

“We will be listening to feedback and building out even more features and perks for our subscribers over time,” it said.

It does not, however, include verification in the form of a “blue tick” on a user profile, which cannot be bought.

Twitter recently re-opened its verification applications for the fist time in years, but was forced to shutter the programme for a few days after just a week of accepting them, because it was inundated with requests.

Twitter made no secret of plans to charge its top users a small fee for some extra perks – but it’s only dipping its wing in the water for now.

The much-asked-for undo tweet button is undoubtedly top of the list, for all of us who’ve ever had a screamer of a typo, or – even worse – accidentally tweeted something we meant to search for.

But other features are squarely targeted at the Twitterati elite.

When Twitter bought web reader firm Scroll in May, it made a big deal about Twitter being for news and discussion. Bookmarks and the reader feature for long threads are firmly targeted there.

And for good reason.

Twitter’s growth in active users has slowed in recent years – a potential problem for any social network, where perceived value is often based on numbers. Twitter has never had the users that Facebook has – it boasts hundreds of millions, but not billions.

But many of its biggest users are media personalities, politicians, and business leaders – the type of people for whom a small monthly fee might not be too much to ask.

This is new territory. Unfounded rumours that Facebook might one day ask for a fee have led to digital panic in the past – so Twitter’s two-country opener is a test to see if the idea will fly.

Read from source: https://www.bbc.com/news/technology-57348456

 

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Flubot: Warning over major Android ‘package delivery’ scam

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A text-message scam that infects Android phones is spreading across the UK, experts have warned.

The message – which pretends to be from a package delivery firm, prompts users to install a tracking app – but is actually a malicious piece of spyware.

Called Flubot, it can take over devices and spy on phones to gather sensitive data, including online banking details.

Network operator Vodafone said millions of the text messages were already being sent, across all networks.

“We believe this current wave of Flubot malware SMS attacks will gain serious traction very quickly, and it’s something that needs awareness to stop the spread,” a spokesman said.

Customers should “be especially vigilant with this particular piece of malware”, he said, and be very careful about clicking on any links in a text message.

The malware also has the ability to send more text messages to an infected user’s contacts, helping it spread.

“The seriousness of these malicious text messages is underlined by Vodafone making the decision to alert its customers,” said Ben Wood, chief analyst at CCS Insight.

“This has the potential to become a denial-of-service attack on mobile networks, given the clear risk that a rogue application can be installed on users’ smartphones and start spewing out endless text messages.

“The broader risk for users is a loss of highly sensitive personal data from their phones,” he added.

While text message scams claiming to be about a package delivery firm are common, they have mostly focused on phishing – trying to trick the user into filling in a form with bank details and other information.

This newest wave differs because it tries to install malicious software on the phone itself – and because of the scale of its spread.

One version of the scam reported online pretends to be a text message from DHL, with a link to a website for parcel tracking.

If someone using an Android phone clicks on the link, they will be taken to a page “explaining” how to install the parcel tracking app using something called an APK.

APK files are a way of installing Android apps outside of the secure Google Play store. By default, such applications will be blocked for security reasons, but the scam page includes instructions on how to allow the installation.

That can be confusing, as there are some niche genuine cases for installing those kind of apps – such as downloading the Fortnite video game, which was removed from the official app store amid a major legal row between its owner and Google.

Apple iPhone users are not affected as those phones cannot install Android APKs.

In a blog post detailing the scam, security expert Paul Morrison wrote that he expects the “success rate would be low” due to the hurdles involved.

But he said: “With the number of SMS being sent out, just a 0.1% success rate could be very profitable.”

The Flubot malware has also spread in other countries in recent months – notably Spain, Germany and Poland.

Industry body Mobile UK said it was “pro-actively co-ordinating its response with the National Cyber Security Centre (NCSC) to minimise any potential damage”.

Users who receive a suspicious message should forward it to 7726 to report it, a spokesman said – and then delete the message.

Read from source: https://www.bbc.com/news/technology-56859091

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Apple Christmas sales surge to $111bn amid pandemic

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Apple sales have hit another record, as families loaded up on the firm’s latest phones, laptops and gadgets during the Christmas period.

Sales in the last three months of 2020 hit more than $111bn (£81bn) – up 21% from the prior year.

The gains come as the pandemic pushes more activity online, fuelling demand for new technology.

Apple now counts more than 1.65 billion active devices globally, including more than 1 billion iPhones.

Apple’s gains follow the release of its new iPhone 12 suite of phones, which executives said had convinced a record number of people to switch to the company or upgrade from older models.

The firm said growth in China – where the pandemic has already loosened its grip on the economy – was particularly strong, helped in part by demand for phones compatible with new 5G networks.

Sales in the firm’s greater China region, which includes Hong Kong and Taiwan, jumped 57%. In Europe, sales roles 17%, and they rose 11% in the Americas.

“The products are doing very well all around the world,” said Luca Maestri, Apple’s chief financial officer. “As we look ahead into the March quarter, we’re very optimistic.”

Analyst Dan Ives of Wedbush Securities said he thought the firm was just at the beginning of a “super-cycle” as Apple devotees finally trade in old phones, coinciding with upgrades to telecommunications networks.

“With 5G now in the cards and roughly 40% of its ‘golden jewel’ iPhone installed base not upgrading their phones in the last 3.5 years, [Apple chief Tim] Cook & Co have the stage set for a renaissance of growth,” he wrote.

Big Tech is having an exceptionally lucrative pandemic.

It’s hard not to be wowed by some of these figures.

That Apple recorded more than $100bn in sales in just three months is simply astonishing.

Facebook figures are also well up on where they were last year.

As other companies have struggled to survive, Big Tech has flourished.

There are other reasons for some of these incredible figures. Certainly it seems iPhone enthusiasts were holding out for the new 5G enabled iPhone12.

But it’s not just Apple and Facebook, all of the massive tech companies are having a bumper year.

Covid-19 means people are spending more time indoors – buying things online, watching things online and chatting online.

Perhaps then it’s no surprise that these companies are posting record breaking figures.

But others point to these figures as yet more evidence that Big Tech has become too big to fail.

These figures are impressive. But they also attract the attention of politicians who are increasingly asking difficult questions – like are these tech mega companies operating in a market that is fair and with enough competition?

Facebook Apple feud

Apple said profits in the quarter reached nearly $28.8bn, up 29% compared with the same quarter last year.

The gains seen by technology firms like Apple contrast with losses hitting many other economic sectors, as the virus restricts activity and keeps shoppers at home.

Other tech firms, such as Microsoft and Facebook, have also enjoyed strong growth.

Facebook on Wednesday said increased online shopping during the pandemic helped lift ad revenue in the quarter by 30%.

The number of people active on its apps – which also include WhatsApp and Instagram – also rose to 2.6 billion daily, up 15% compared to 2019.

It said ad spending could slow as the Covid crisis relaxes and shopper appetite returns for services like travel rather than products.

It also warned that plans by Apple to change how it shares user data could weigh on growth.

Read from source: https://www.bbc.com/news/business-55835504

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