DOJ looking into Nikola over claims it deceived investors

(Fox Business) – The U.S. Department of Justice is reportedly looking into electric semi-truck company Nikola, following allegations that it overstated the efficacy of its technology.

The DOJ has made inquiries about the claims, as first reported by The Financial Times on Tuesday.

The reported inquiry comes after the Securities and Exchange Commission is said to have gotten involved earlier this week.

A spokesperson for Nikola did not immediately return FOX Business’ request for comment about the Justice Department’s alleged probe.

Questions arose after Hindenburg Research published a report alleging “intricate fraud” at the company, which it alleged misled investors over its technologies.

The short-seller firm stands to profit if shares of Nikola drop, a fact that Nikola used to defend itself against allegations in a statement earlier this week.

On Tuesday, the company ended the trading session down more than 14 percent.

As previously reported by FOX Business, despite the allegation,s General Motors CEO Mary Barra on Monday defended the company’s recent decision to take a large stake in Nikola, saying GM had performed “due diligence” prior to the partnership.

In a show of confidence in his own company, the CEO of Nikola purchased additional shares on Monday.