Welcome to Tesla Motors Club
Discuss Tesla's Model S, Model 3, Model X, Model Y, Cybertruck, Roadster and More.
Register

All discussion of Nikola Motors

RobDickinson

Active Member
Jun 23, 2019
1,733
6,093
New Zealand
They had what $800m of cash after the float? they tried to use that and a name to buy vehicle production from GM but that fell apart, so now they have to create a business out of whatever is left thats somehow valued at several billion... a few dozen rebadged trucks wont do it.
 

Mengy

Member
Feb 18, 2020
729
6,129
PA
Individuals commit the sunk cost fallacy when they continue a behavior or endeavor as a result of previously invested resources (time, money or effort) (Arkes & Blumer, 1985). This fallacy, which is related to loss aversion and status quo bias, can also be viewed as bias resulting from an ongoing commitment.


For example, individuals sometimes order too much food and then over-eat just to “get their money’s worth”. Similarly, a person may have a $20 ticket to a concert and then drive for hours through a blizzard, just because she feels that she has to attend due to having made the initial investment. If the costs outweigh the benefits, the extra costs incurred (inconvenience, time or even money) are held in a different mental account than the one associated with the ticket transaction (Thaler, 1999).

Research suggests that rats, mice and humans are all sensitive to sunk costs after they have made the decision to pursue a reward (Sweis et al., 2018).



Arkes, H. R., & Blumer, C. (1985), The psychology of sunk costs. Organizational Behavior and Human Decision Processes, 35, 124-140.

Sweis, B. M., Abram, S. V., Schmidt, B. J., Seeland, K. D., MacDonald, A. W., Thomas, M. J., & Redish, A. D. (2018). Sensitivity to “sunk costs” in mice, rats, and humans. Science, 361(6398), 178-181.

Thaler, R. H. (1999). Mental accounting matters. Journal of Behavioral Decision Making, 12, 183-206.

That's a very good answer.
 

BluestarE3

Active Member
Apr 2, 2016
4,088
5,213
Norcal
And then, of course, there are tons of people that simply don't understand the underlying technology and think the stock is still worth something based on today's knowledge of the company. I include professional investors in that basket.
Yep. Just like there were a lot of "smart" people who continued to believe and invest in a medical equipment startup (whose founder and CEO is on trial currently in San Jose) even though there were warning signs about the viability of the underlying technology, let alone the company's ability to develop that technology.
 
  • Like
Reactions: Cosmacelf

Spacep0d

Active Member
Apr 20, 2019
1,106
1,800
Wildomar, CA
Yep. Just like there were a lot of "smart" people who continued to believe and invest in a medical equipment startup (whose founder and CEO is on trial currently in San Jose) even though there were warning signs about the viability of the underlying technology, let alone the company's ability to develop that technology.
Ah yes, Theranos and its CEO, Elizabeth Holmes. There is a great documentary out about this now called 'The Inventor: Out For Blood in Silicon Valley'.
 

mark95476

Active Member
Jun 21, 2020
1,938
1,491
Bay Area CA
Supposedly they're going to pay the SEC off with some of that cash. (edit: Credit mltv for posting that tweet)

Then they can focus on hooking a greater fool to buy the garbage they're pedaling. They had GM for a while.

They had what $800m of cash after the float? they tried to use that and a name to buy vehicle production from GM but that fell apart, so now they have to create a business out of whatever is left thats somehow valued at several billion... a few dozen rebadged trucks wont do it.
 

AudubonB

One can NOT induce accuracy with precision!
Mar 24, 2013
8,482
32,354
I‘ll not be clicking on the link, but I see there is today a SA article claiming that NKLA is one of their top candidates for a short squeeze.
This oughta be fun……
 

mark95476

Active Member
Jun 21, 2020
1,938
1,491
Bay Area CA
$125M fine for NKLA.


Nikola Corporation will pay a $125 million penalty to settle charges against founder Trevor Milton, who misled investors and is currently under indictment for three counts of fraud.
 

SageBrush

REJECT Fascism
May 7, 2015
12,751
16,964
New Mexico
Company whose entire market cap is built on fraud fined 2% of said market cap for the fraud.
Yeah, that makes sense.

Maybe it does, if it leaves NKLA assets for the misled investors.
I say that in a general sense, since I think the past NKLA investors were, and the present investors are, morons.
 
  • Like
Reactions: Brando

SageBrush

REJECT Fascism
May 7, 2015
12,751
16,964
New Mexico
It is *amazing* that the stock price rises upon 'better' fraud litigation news, while ignoring why the fraud happened in the first place: Nikola has no product to sell, and it will never have any product to sell.

That is a $1B chicken running around with its head chopped off.
 
  • Like
Reactions: Brando and HVM

Products we're discussing on TMC...

About Us

Formed in 2006, Tesla Motors Club (TMC) was the first independent online Tesla community. Today it remains the largest and most dynamic community of Tesla enthusiasts. Learn more.

Do you value your experience at TMC? Consider becoming a Supporting Member of Tesla Motors Club. As a thank you for your contribution, you'll get nearly no ads in the Community and Groups sections. Additional perks are available depending on the level of contribution. Please visit the Account Upgrades page for more details.


SUPPORT TMC
Top