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I am surprised that the investors let this go on as long as they did, but they may have hoped that there would at least be some useful technology being created, which could be sold to reduce their losses. This is best done by acquisition, rather than after a company is shuttered -- when you have a "fire sale" situation. Honestly, if the investors were aware of the scam being perpetrated on the customers/victims then the investors themselves should also be prosecuted.)
They all wanted to believe
Quote from: magic on January 04, 2022, 06:03:55 pmThey all wanted to believe I think that was really a large part of the story as well. For quite some time the story resembled a 21st Century Hollywood script.
We see a similar issue with Nikola, who have defrauded investors to the tune of billions, with a truck rolling down a hill. For some reason, no one actually ever investigated whether they had feasible hydrogen fuel cell technology, despite the likes of GM pouring money into the company? It's really bloody weird. I probably spent a day's research on buying a £300 phone, yet a $500 million investment is agreed on the basis of napkin maths and a body-in-white.
Under the proposed agreement, GM would have provided battery and fuel-cell technology to Nikola and manufactured Nikola's planned Badger electric pickup.In exchange, GM was to take an 11% stake in Nikola, as well as cash payments for its services. The deal would also have given GM a stronger foothold in the emerging zero-emissions vehicle market.
GM didn't pour any money into Nikola, not sure where you got that information from, they are not stupid.
The expression is "Fake it until you make it". She didn't make it. It works for certain obstacles, like the financial and practical hurdles Tesla faced, but it doesn't work out when your underlying technology simply can't work, like U-Beam. With Theranos, I'm not sure if the claimed technology can ever be made, but I suspect it can.