How to Extinguish the Fire
How to Extinguish the Fire : Solutions for Future Success
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| Image Credit: The Business Journal |
The fire caused by the Hindenburg Research exposé had created a significant impact on Nikola Corporation. Once the damage was done, Trevor Milton had stepped down from his position as CEO as well as his position on the company’s board (Source : CNN). As stated in my previous post “The Company’s Denial”, Nikola has continuously denied the allegation made in the exposé and has made threats to take legal action against Hindenburg Research.
In my opinion, Milton was using a teleological framework where he focused on the results or outcome. All his words were used to persuade the public to gain a favorable outcome for the company and mainly, for him. His emphasis on the technology that he didn’t have was to attract investors to gain capital for the company. After the reveal in December of 2016, the public was amazed and desired more from Nikola simply because a shell and a clown made a grand gesture. The lies conjured up by Milton gained the favorable outcome that he wanted but at a cost. It was realized too late that his deception would soon catch up to him. His short term outcomes were overshadowed by the long term damages.
There are three courses of action I would recommend for the company to take so that the public can trust them and have faith in them once again.
Take Accountability
The company needs to take accountability for their actions. Though it was Milton doing the damage, the company was aware of the claims. The constant denial when there is legitimate proof in the world of the actions committed is not a good look. To alleviate the pain and gain some type of positive reaction from the people, they need to own up to their mistakes.
Provide Legitimate Proof
Now that Milton is out of the picture, Nikola Corporation still has a vision for hydrogen-electric vehicles, mainly the tractor truck and the refueling station network. With the so-called proof that was provided by the company prior to the exposé, many consumers and investors are not likely to believe the advances the company actually makes. The company should provide legitimate proof that can be verified by a third party company to show the actual advancement made by the company. Data, number, videos, pictures, and more that aren’t just some show piece. Having it verified by a third party company would allow for consumers and investors to trust what the company is putting out. With the slow gain of trust, there is also a gain in customers and capital to further the company.
Commit to Change
For the selfish acts committed by Milton, the company should do something selfless. They should utilize some of their capital to donate to a good cause, let it be more research for cleaner energy sources or for funding high school STEM programs. Having a central theme (ex. Technology advancement, clean energy, STEM, environment) allows for the company to donate to many causes while keeping in mind their values. One of the values that Nikola currently has is Drive Forward: Disrupt and innovate” (Source : Nikola). Using this value, they contribute to the potential success of future innovations, leading the coming generation to the future.
Though the company has gone through a dumpster fire, it has the potential to clean up and strive for greatness. The passion and innovation was there from the start yet a greedy man manipulated it for gains that were easily diminished. If Nikola takes the proper action, possibly the ones I have recommended, they can come back from this. They will still have the chance to be a competitor to their surname. Nikola and Tesla, one man yet two different challengers in the race to go green.
The blog post provides a thorough analysis of the situation surrounding Nikola Corporation and the steps they can take to regain public trust. The author's recommendation to take accountability, provide legitimate proof, and commit to change are all valid suggestions for the company to consider. I am curious about the author's thoughts on the potential long-term impact of the Hindenburg Research exposé on the hydrogen-electric vehicle industry as a whole. Do they think this will have a lasting impact on public trust in the industry, or will companies like Nikola be able to regain trust and continue to advance in the space?
ReplyDeleteThis will have an everlasting effect on the hydrogen-electric vehicle industry and the companies that dares to enter the industry. Because of the Nikola Corporation scandal, companies must put in far greater effort to prove the progress of their technology. Simple proof (videos, photos, etc.) will not be enough. Third party verification, government approvals, and more will be needed to show that what they are delivering the truth. I believe that Nikola as a company has a shot at coming back from this scandal. Though the efforts they put in must be much greater than the past, they could still be the first to revolutionize the transportation (via highway/truck) industry. If the make the proper changes and utilize transparency to address their consumers, the future is still there. GM hasn't backed away from the deal which is a plus. Not everyone has turned their backs and Nikola can still be the future.
DeleteDo you think they really can recover? In my opinion their reputation is in the trash and they really don't have the technology that they claim to have. I think they have a lot figured out for a product, but it still doesn't change the fact that this revolutionary technology isn't real. I don't think they can financially support themselves while doing more R&D for the actual technology simply because stakeholders have lost trust in this firm.
ReplyDeleteI do have faith that they can come back from this. Understanding the entire scandal as a whole, I can understand how you believe that their reputation is not impossible to save. The main reason for the downfall was Trevor Milton. It was his lies that ran this company down to the ground. Now that he is out the picture, people with the passion for this advancement can do the right research and provide legitimate proof of their progress. Currently, the company is still pursing the technology and desires to make it a reality. It will take time and much more effort to gain a respected name after the scandal. Not all is lost but it can be if the corporation doesn't step up and take the necessary steps for change.
DeleteI believe that Nikola did a great job on being transparent with their errors. Yes, they lied but it wasn't the fault of the company as a whole but Trevor Milton's. Its unethical to lie about something just to gain popularity but after the resignation of Milton, they are still trying to explore things that they originally didn't have, which is commendable. My only question is, do they still have the capacity to pursue new technology given that their reputation is essentially ruined?
ReplyDeleteI do argue that Nikola did a good job being transparent. In my previous post regarding the company's reaction to the scandal, they had denied everything that was said about their action in the Hindenburg Research exposé though the report had presented numerous amounts of evidence. Trevor Milton had to step down to further reduce the damage done. Though they were upfront withe the results of the SEC investigation, their actions prior tells me that they weren't very transparent with their business practices. I do think the company has the capacity to pursue the new technology regardless of the damaged reputation. It was mainly Trevor Milton at fault as his lies lead to much of the downfall. Hydrogen-electric energy is possible and the company has a decent footing into the idea. Using the information that is viable from their past and using proper research in the future, they can come back from this with the advancement they promised. General Motors has not back away from their partnership. Though the deal has been redefined, Nikola can leverage off of GM to create a better future.
DeleteI think Trevor Milton had the right idea of giving people hope in a more positive, environmentally friendly future. However, his means of doing so were not exactly the best. I do think that Nikola still has a chance to be a good company, just maybe without Trevor Milton. If they maintain their original values and really try to aspire towards them, they could have some redemption.
ReplyDeleteI do agree with you in regards to the redemption of Nikola Corporation. Now that Trevor Milton has stepped down from his position in the company, Nikola has the potential to be for success in this new sector of alternative energy. With the right leadership and guidance, the company can use their initial ideas and plans to create a foundation for their future. Going forwards, they need to more transparent and truthful with their stakeholder. They should provide data which is back by a third party company or a government agency to show their progress. General Motors still has the deal with Nikola but they have redefined the deal to prevent any damages to their name. With GM and their resources, the original goals of Nikola can be achieved. However, eyes will be on them at every moment so they must continue with much preparation and careful consideration to all their actions.
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