# And here's an electric vehicle company that's crashing

**URL:** <https://community.cartalk.com/t/and-heres-an-electric-vehicle-company-thats-crashing/170264>\
**Category:** General Discussion\
**Created:** [September 22, 2020, 2:57pm UTC](https://community.cartalk.com/t/and-heres-an-electric-vehicle-company-thats-crashing/170264 "2020-09-22T14:57:48Z")\
**Posts on this page:** 3\
**Page:** 1

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**Author:** ![texases](https://sea1.discourse-cdn.com/cartalk/user_avatar/community.cartalk.com/texases/32/862_2.png) [@texases](https://community.cartalk.com/u/texases)\
**Post date:** [September 22, 2020, 2:57pm UTC](https://community.cartalk.com/t/and-heres-an-electric-vehicle-company-thats-crashing/170264/1 "2020-09-22T14:57:49Z")

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Looks like Nikola may have been a scam:

> **[Nikola share slump deepens as founder resigns](https://www.reuters.com/article/us-nikola-chairman/nikola-share-slump-deepens-as-founder-resigns-idUSKCN26C0I2)**
>
> Shares of electric-truck maker Nikola Corp tumbled as much as 30% on Monday after founder Trevor Milton stepped down following claims of nepotism and fraud by a Wall Street short-seller that have drawn interest from U.S. regulators.

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**Author:** ![jtsanders](https://avatars.discourse-cdn.com/v4/letter/j/c2a13f/32.png) [@jtsanders](https://community.cartalk.com/u/jtsanders)\
**Post date:** [September 24, 2020, 1:14am UTC](https://community.cartalk.com/t/and-heres-an-electric-vehicle-company-thats-crashing/170264/2 "2020-09-24T01:14:45Z")

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GM gets an outlet for new electric trucks and keeps employees busy at it. It’s not clear that Nikola hoodwinked them. I don’t know what else they did, but just from the article, it seems like it could work out well for GM.

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**Author:** ![bcohen2010](https://avatars.discourse-cdn.com/v4/letter/b/779978/32.png) [@bcohen2010](https://community.cartalk.com/u/bcohen2010)\
**Post date:** [September 24, 2020, 3:05am UTC](https://community.cartalk.com/t/and-heres-an-electric-vehicle-company-thats-crashing/170264/3 "2020-09-24T03:05:38Z")

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“Scam” is a harsh word. I don’t think their business plan is a scam, but I do have serious questions about the viability of this business model. I also think the stock was grossly overvalued, and due for a major correction (and still needs to come down further).

It is, of course, difficult to make a profit selling vehicles that are built under license by someone else. Daewoo did not succeed, and they were building their own cars, but using engines and transmissions purchased from GM.