Dividends and Founder of EV maker Nikola indicted in US on charges of defrauding investors

In all markets and new changes, there is opportunities to be made and there are also people who know how the system works to move your money from your pocket to their pocket. Thanks to Tesla’s success there are many other companies that report to offer the same thing and in an capitalist economy that is a good thing. Unfortunately some of the offering will fail, some will partially succeed and some will be bought by the dominate players in the industry. Electric cars are coming, we all know that because governments around the world are mandating the large auto companies to produce electric vehicles by 2030, how we get to 2030 is a different issue.

If you think about the start of electricity there were 2 pioneers who seemingly had the biggest impact Tomas Edison and Nikola Tesla. Edison won the commercialization of electricity and Edison Power is named after him. Nikola Tesla was not written about in the history books until Elon Musk founded Tesla,

In an article by Jonathan Stempel and Ben Klayman of Reuters, the Manhatten DA charged Trevor Milton the billionaire founder and CEO of Nikola with defrauding investors by lying to them about the electric and hydrogen powered truck maker.

The closest the Nikola One ever came to driving was when the company engineers rolled a protype down a hill so it could be filmed for a commercial. In the meantime, all the press releases were to hype the stock and let Mr. Milton sell at a higher price.

Short seller Hindenburg Research wrote a report that labeled the company a fraud, and GM which was contracted to supply batteries and buy a 11% stake in the company has since left that relationship with no equity stake.

Linking to dividend paying stocks, it is wonderful to get excited about new developments, they are the life blood of the economy. It is wonderful to hear people discuss the new opportunity, but it something else to actually have sales and make a profit. If you ever watch the TV show Shark Tank, the question the Sharks ask is do you have sales. Is someone willing to buy what you are selling? With dividend producing stocks the answer is yes and they are consistent and year over year. You can ask your dividend paying companies how would the great opportunity fit into their company? if the answer is not yet, then look at different alternatives.

There are more questions than answers, till the next time – to raising questions.

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