The Crisis Episode

Nikola’s surge in valuation was short-lived due to accusations from a short seller that triggered a trust crisis, casting doubt on the company’s technology claims and the founder’s integrity. This chapter argumentatively reconstructs the factors leading to Nikola’s decline, identifying the central points of attack against the backdrop of Nikola’s strategic investor communication framework. The chapter then examines Nikola’s response to the crisis and explores the transformative dynamics of the startup’s strategic communication during the crisis episode.