Ever since nikola motors has gone ipo, the company has gotten a lot of hype for its upcoming products, with many claiming that the company is the next tesla trevor milton the ceo of nikola motors went as far as to claim that nikola's batteries are better and cheaper Than tesla's, however, despite all these promises, nikola motors has yet to sell a single vehicle in this video. I'm going to explain why i believe nikola motors is a fraud if you're new to the channel. Please consider subscribing for more content like this. With that being said, let's get right into it.

Nikola motors is painting a vision that they'll be able to succeed with both hydrogen fuel cells and batteries. This all sounds overly ambitious, but at the end of the day, ambition is what drives innovation so that isn't where the red flag pops up for me, when i looked more into the company, it was starting to become clear that nikola motors was a fraud with overarching Promises and no evidence whatsoever. What i do believe is happening, however, is that trevor milton is attempting to boost the valuation of nikola motors to a point where he can get the funding. He needs at a high valuation and maybe be able to achieve some of his high ambitions with that money similar to a fake it till you make it mindset.

As of june, 8th nikola motors is already worth 21 billion dollars with no sales whatsoever. This high valuation is there for the hope that nikola's claims are true. So let's go over each of the promises. Nikola motors has released in a press release from nikola motors.

The company stated that their batteries had a cathode with four times more energy density than lithium ion could last 2 000 cycles achieve an energy density of 500 watt hours per kilogram and cost 50 percent less to produce than lithium ion batteries right off. The bat nikola is claiming that they have a battery, far superior to teslas. To put this into comparison. Tesla's batteries currently have an energy density of 250 watt hours per kilogram, so nikola is implying that their batteries already have two times more range than tesla's.

Now, with tesla's battery investor day approaching, it's no secret that tesla is looking to improve its battery substantially. This is done with years of research and funding from jeff don at the dalhousie university. The acquisition of maxwell and hybar and the pilot production line in fremont nikola has this incredible battery breakthrough. But where are the patents who's doing? The research trevor milton is painting a vision that tesla is following their footsteps.

He believes that he has already out-competed elon, when the truth is that he hasn't sold a single vehicle yet and uh. You know here's the thing like there's a lot of good about what you know, what tesla's done in the past to teach people that uh that electric vehicles can work. But nikola is the pioneer in heavy duty, trucking and tesla's. Just really just following in our footsteps and a lot of them, you know a lot of them are uh, really believe that elon is like this, this great person that can do anything and it's when they see someone else being able to actually beat him at what He's doing they hate that it's so look we're not getting into the cars.

We do. We do trucks, we do. You know huge semi trucks, all the way down to medium duty trucks for business. Like the badger you know the stuff, we only focus on markets that actually create revenue in any economy, and so i it is a huge picture, there's no doubt there's very few people that can out elon in this world than that and i'm one of them.

I i have no problem with him. I think he's a. I think. You know what he's done is awesome, but there's uh it's it's kind of hard.

When uh, you know for his followers to see someone that can actually build something, bigger or or uh or more competitive than what he has. So that's that's why we get a lot of that hate. Sometimes i'm sure many of you know that nikola motors sued tesla for using its design on the tesla semi, where the door is replaced behind the seat. This is important because, in order to get the aerodynamics right, the door of the semi must be placed behind the driver's seat.

When nikola saw the design on the tesla semi, they realized that tesla didn't file a patent for that design. Yet, as a result, nikola filed a patent for the design and sued tesla for using a design they invented. This was accidentally leaked by trevor, milton in the interview with tesla daily. Let's go over the subtle leaks one by one.

First trevor describes how he knew a lot about the tesla semi before it was released. What they don't know is prior to tesla, launching this truck. We knew about the truck very. We knew a lot of details, a ton, then trevor states that people have built mock-ups with the design before.

In other words, tesla has built a mock-up of their semi that had the design, but trevor knows that mockups aren't considered by the patent office, and this had never been done up to this point. Some people have built mock-ups of things, but the patent office doesn't consider that a patent you've got to actually show utility usage of it. So they know nothing about patent law. If they did they would you know it's if you don't like it go change patent law, but here's the facts of america.

We know that trevor is referring specifically to tesla when he stated that people have built mockups before, because he specifically referenced the quote-unquote people as they a singular term. So they know nothing about patent law. If they did they would you know it's if you don't like it go change patent law, but here's the facts of america so trevor patents, the design and tries to contact tesla for ransom money. But of course, elon musk doesn't want to pay money for his own design, but the most important thing is: we just don't want to use our patents or, if you do, we want to work with you, so you can do it the right way and essentially their Response was piss off because tesla doesn't want to pay trevor ransom money.

Nikola, then sues tesla for using the design trevor's excuse to do. This is because tesla has an unlimited cash flow and it wouldn't cost much to just give some money to nicola and tesla's got an unlimited amount of cash. They can borrow money whenever they want and take in as much money as they ever want their stocks. At 900, a share - they could take 10 billion tomorrow and squash us if they wanted to with losses that they don't even care about.

The only thing that allows us to become uh be competitive is the laws in the united states. This whole move by trevor was literally industry espionage, trevor spied on tesla semi patented one of tesla's design and sued tesla for using that design. One common occurrence i'm seeing with trevor milton, is the fact that separate interviews contradict each other. For example, in one interview with tesla daily, he mentioned that nikola's business model was changing all the time and then in another interview with jmac investing, he mentioned how nicola's business model is already set in stone and all that's needed is execution.

Yeah ryder was interesting because uh, you know it's as our business model has been evolving. It's crazy. You know people don't realize how many times a month, we have to sit down with our business model and look at it and reevaluate how you how you actually do this and everyone does it um doesn't matter who you are it's you sit down you're like there's. Five new companies that enter that come into the market and they're all hitting different points, and you have to figure out how to kind of weave in and out of all this to be successful and in our model.

Now it all the risk we have is in execution, that's really it the technology's there, the business models there, the profitability, is there, the revenues there. All this stuff is ready to be executed on. The only thing we have to do is is just the execution and that's it another statement that seems to contradict each other is the production process of nikola motors in jmac investing's interview trevor milton stated that nikola would be vertically integrating the entire manufacturing process. However, in tesla daily's interview, he stated that nikola would be partnering in order to have a different company manufacture their trucks for them sometime here shortly, don't know the day yet, but it'll work we're pretty far into lining.

You know to uh, essentially nailing that one down and that oem will actually build it service. It warranty it and sell it for us and that's what's so. We won't do any of that. We won't have to do any of that.

Why are we? Why is a company have such a good name? Why are we? Why do we have so many people rallying behind us? It's because we're the only group, that's really thought out the entire process vertically integrated from beginning to end, where there's no there's very little risk in in our model. Now it all the risk we have is in execution. That's really it in hindsight. It seems like trevor was a fantastic businessman and a skilled speaker, but this really caught my eye when you say you're going to do something in one interview and contradict that in another.

My trust instantly evaporates nicola motors claims that they have 10 billion dollars of orders ready to produce when the truth is that the company has none in order to pre-order a nikola semi. All you have to do is put your name and address. I could order 10 semi trucks right now and they'll count that as 3.5 million dollars in orders, tesla gets a lot of flack for its 100 cyber truck reservation. But when that number is zero, the sky's the limit for the number of semis someone can order and then to claim those orders as revenue is in simple terms, a fraud for investors in an interview with tesla daily trevor, milton stated that each hydrogen station will cost Just 10 to 20 million dollars to build, including the land, one of the things that um, i think came up.

There is in terms of those hydrogen stations. You said that it's quite a bit cheaper. You know per energy stored for those hydrogen tanks. How much in terms of like how much does an average hydrogen station? How much is that going to cost you to? You know, build out hundreds or thousands of these over time? Well, um i'll give you kind of a range, because i don't want to give it away to our competitors but sure you're between about 10 and 20 000 a hydrogen station.

This is for a minimum. Eight ton station totally done and that's everything all in. That's everything. All in even the land, so if you factor that in and you look at that - that's for an eight ton station that would do 8 000 kilograms a day.

And if you look at that energy storage, that's in the you know. That's that's enormous amount of energy. Now you lose about 30 percent of that when it gets back on. You know when it's on the truck and you reconvert it to electricity right.

So, let's just say it's: 8 000 kilogram, uh 8 000 um kilograms every kilogram has about. Oh, i don't know. 55. 60 kilowatt hours i mean it depends on that's how much it takes to produce it, but let's say it stores about 50 kilowatt hours, something like that in a in a kilogram.

You lose 30 percent of that you're down to 35 kilowatt hours times. 8 000 is about a quarter. You know is about 300 megawatt hours of energy um for that for that 10 to 20 million dollars. So you could, if you were to store 300 megawatt hours of energy and batteries, you would be hundreds of millions of dollars.

Now the fact that trevor milton claims that the station would cost around 10 to 20 million dollars to build gives a huge red flag in a video released by nikola on what each station would look like. It became quite obvious that each station wouldn't just take 10 to 20 million dollars to build all of these gigantic buildings. Parking spaces and land costing just 10 to 20 million dollars would truly be a dream. To hope for overall nikola motors is a fraud selling a false dream that looks to take your money to boost valuations and use that money to achieve one tenth of the dream it has nikola motors is the ultimate fraud.

Let me know what you think about nikola motors in the comment section below. If you enjoyed this video, please hit the like button and subscribe and i'll see you in the next one.