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Comment by happytiger | Hacker News Reader

I have a hard time feeling sorry for the guy. He lied through his teeth and did an old fashion pump and dump.

Worth reading the complaint if you want to hear what he did:

https://www.cohenmilstein.com/wp-content/uploads/site/2022.0...

The "NIKOLA ONE IN MOTION (rolling downhill)" video wasn't mentioned in this complaint, but it seems pretty indicative of the deceptive way this company communicated with the public:

https://arstechnica.com/cars/2020/09/nikola-admits-prototype...

And from the Hindenburg report (https://hindenburgresearch.com/nikola/)

"An investigator sent to the exact site used by Nikola for their video tested the hill in an SUV by parking the vehicle at the top, then rolling from neutral. He was able to hit a top speed of 56 mph and rolled for approximately 2.1 miles."

The pull quote in that article is fantastic.

As part of refuting the Hindenburg claims, Nikola said:

"Nikola never stated its truck was driving under its own propulsion in the video."

"Well technically we said..." is not a disclaimer a company should ever have to use about its own marketing materials.

If ever ‘should’ meant ‘I wish’, it would be here.

Isn't this just "Fake it until you make it"?

I don't personally believe people should do this, but it is a mantra often thrown around.

The “fake it till you make it” strategy is more about changing your behavior to project confidence when you don’t feel you should have any or the social situation wouldn’t necessarily support it.

This is fundamentally lying to investors when you have a fiduciary responsibility beyond your own enrichment.

This isn’t some suggestion either, but law. Obviously we can debate the effectiveness of the law. But generally you are expected to “be square” in your dealings.

https://www.nolo.com/legal-encyclopedia/fiduciary-responsibi...

There is solid precedent that it depends on what the definition of ‘is’ is. /s

Maybe it’s an example of “fake it ‘till you make it” that crossed the line into fraud?

For example, when puffing up one’s CV, one could probably get away with making an actual accomplishment seem more important than it is. However, if they were to make up the accomplishment whole-cloth, the that would cross a line.

I take it prosecutors are far more lenient when you're faking a phone UI to always show a full signal or surreptitiously switch to a new phone before the previous one runs out of memory and needs a restart, rather than pretending a 20-ton killing machine can drive itself up a hill.

I think the most important differentiator is who gets fleeced. In the case of the phone, average Joes get stuffed. In Nikola's cases, rich people got stuffed.

That's why this gets prosecuted fairly quickly, while corporations regularly committing fraud against consumers remain in business for decades.

This is also why everyone has heard about Theranos.

I guess so. But I've never thought this was the true spirit of that phrase. To me, fake it till you make it means to pretend you know what you are doing until you do.

And it basically is fraud. That fraud is easier to prove if the result is failong and not making it.

If that was the only evidence of fraud then Elon would have huge problems. Does anyone remember the solar city demo?

You have to appreciate the jokes in the complaint:

In short, the VectoIQ Board simply failed to look under the hood at Nikola—both figuratively and literally—completely abdicating their responsibilities to VectoIQ’s stockholders.

I know. Whoever wrote it was someone I’d like to buy a drink for. It’s hilarious.

How much money did he manage to milk from the company? With that light four year prison sentence where he makes nothing, he'll probably still end up making more than us during his work + prison sentence if the penalty phase is just as light.

It was so much that he bought the most expensive real estate in the entire state of Utah. https://www.mansionglobal.com/articles/nikola-motor-chief-se...

"2,670-acre Riverbend Ranch, which includes a 16,800-square-foot mansion along the Weber River"

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