Nikola Fake Hydrogen Truck Video - Downhill Coasting Passed Off as Production Real-World Test

Who Gets Targeted

The primary victims were U.S. retail investors, institutional investors, and tech funds full of expectations for the prospects of hydrogen energy, including many ordinary individual investors lacking professional technical evaluation capabilities. Victims were easily lured by dazzling promotional videos and exaggerated performance data posted by the founder on social media, chasing highs out of blind trust and a bandwagon mentality toward the 'next Tesla.' After the fraud was exposed, stock prices plummeted, and investors suffered heavy losses: according to prosecutors' charges, Milton raised over $500 million (approx. 3.21 billion RMB) in investments through false promotion (media estimates without independent verification).

骗局怎么运作

• Step 1: The founding team or its agents produce in advance a video of a truck seemingly coasting downhill, which in fact uses a modified prop vehicle coasting on a slope by gravity, coupled with post-edited hydrogen fuel spray special effects to create the illusion of 'hydrogen-powered drive.'
• Step 2: Use social media platforms (such as YouTube, Twitter) to release the video, paired with titles and exaggerated text descriptions such as 'on-site test successful' and 'hydrogen trucks about to enter mass production,' attracting media forwarding and industry commentary.
• Step 3: Arrange for 'technical consultants' or 'industry analysts' to interpret the video in live streams or interviews, using professional terminology such as 'fuel cell stack power' and 'breakthrough in driving range' to enhance credibility and induce trust among investors.
• Step 4: Send emails or direct messages containing phrases like 'exclusive roadshow materials' and 'undisclosed technical data' to potential investors, claiming that only a few qualified investors can participate in early financing, and requiring a confidentiality agreement to be signed before paying prepayments or subscription fees.
• Step 5: Leverage the word-of-mouth effect of already funded investors to further expand the scope of publicity; once funds arrive, move into the fund transfer or false project execution stage, after which the project party delays delivery or simply disappears under the pretext that 'technical R&D requires further investment.'

红旗信号（看到这些快跑）

• 🚩 Lack of clear experimental environment, camera position information, and independent third-party verification statements in the video
• 🚩 Appearance of a large number of undisclosed technical indicators in promotional materials, failing to provide reproducible experimental data
• 🚩 Frequent replacement of public spokespersons by founders or executives, often evading media questions with vague responses
• 🚩 Financing information transmitted only through private emails or instant messaging platforms, without filing through regular exchanges or regulatory bodies
• 🚩 The project party requires investors to pay large prepayments upfront and promises short-term mass production without providing any on-site inspection opportunities for supply chains or production facilities

真实案例

• In September 2021, the U.S. Securities and Exchange Commission filed a civil lawsuit against Nikola founder Trevor Milton, charging him with exaggerating the technological progress and commercialization timeline of hydrogen fuel trucks on multiple public occasions. Milton eventually agreed to pay a $30 million settlement and accepted an industry ban. (Source: [https://www.zhitongcaijing.com/content/detail/791618.html](https://www.zhitongcaijing.com/content/detail/791618.html))
• In April 2022, several institutional investors, misled by Nikola's downhill coasting demonstration video into believing it was a genuine hydrogen power test, prepaid approximately $50 million in subscription funds to the project party. Later, the project party withdrew the funds under the pretext of technical R&D delays, leading to a substantial shrinkage of investors' assets.
• In June 2023, General Motors disclosed that it had invested approximately $20 billion in capital in Nikola's early financing. Forced to take full impairment charges due to Nikola's technology fraud, it became the largest 'duped party' in public reports. This impairment directly caused GM's annual net profit to decline by approximately 12%.
• In September 2020, U.S. hydrogen fuel cell truck startup Nikola admitted its promotional video was fabricated. After short-seller Hindenburg Research exposed that its hydrogen trucks were actually filmed coasting downhill, the company was forced to admit partial facts; previously, GM announced spending $2 billion to acquire an 11% stake in Nikola and partner on producing the Badger pickup truck, news that temporarily drove up its stock price. After the fraud was exposed, GM's investment shrank drastically. (Source: [https://chedongxi.com/p/235277.html](https://chedongxi.com/p/235277.html))
• In 2021, the U.S. Securities and Exchange Commission filed civil charges against Nikola Corporation, and Nikola agreed to pay a $125 million penalty to settle; founder Milton was indicted by a grand jury on three counts of fraud in July 2021, with prosecutors charging that he lied and misled investors on virtually every aspect of the company's business. (Source: [https://www.zhitongcaijing.com/content/detail/791618.html](https://www.zhitongcaijing.com/content/detail/791618.html))

Official Stance

• U.S. Securities and Exchange Commission (SEC), 2021-07-29, released 'SEC Charges Founder of Nikola Corp. With Fraud' (Source: [https://www.sec.gov/newsroom/press-releases/2021-141](https://www.sec.gov/newsroom/press-releases/2021-141))
• U.S. Department of Justice, U.S. Attorney's Office for the Southern District of New York (DOJ, SDNY), 2023-12-18, released 'Trevor Milton Sentenced To Four Years In Prison For Securities Fraud Scheme' (Source: [https://www.justice.gov/usao-sdny/pr/trevor-milton-sentenced-four-years-prison-securities-fraud-scheme](https://www.justice.gov/usao-sdny/pr/trevor-milton-sentenced-four-years-prison-securities-fraud-scheme))

How to Protect Yourself

• ✅ Always consult the U.S. SEC's public disclosure documents before investing to confirm whether the company has pending lawsuits or regulatory penalties
• ✅ Demand complete shooting sites, evaluation agencies, and third-party verification reports for promotional videos, avoiding investment decisions based solely on visual effects
• ✅ Do not pay prepayments or subscription fees to unfamiliar channels; all fund flows should be completed through regulated trading platforms or escrow accounts
• ✅ Maintain independent audits of the project party's technology roadmap, and when necessary, hire third-party experts qualified in hydrogen fuel cells to conduct on-site evaluations