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backsies?!......GM backs out and reworks deal with Nikola.....
Posted by: NewtonMP2100
Date: November 30, 2020 12:23PM stake in Nikola and they won't build their electric pickup....they will only help build cells....and Nikola stock plummets......

Nikola shares crater by more than 20% after GM gives up equity stake in smaller, reworked deal

General Motors and Nikola announced a reworked, smaller agreement that keeps the fuel cell partnership intact.

The new deal drops GM’s equity stake in the start-up as well as plans to build Nikola’s electric pickup truck the Badger.

Nikola’s shares plunged on the news.

.....Shares of Nikola plunged more than 27% in trading Monday morning after General Motors announced that it is giving up an equity stake in the electric truck start-up and the two said they are dropping plans to build the Badger, Nikola’s pickup truck for consumers.

In September, the automakers announced a $2 billion deal that gave GM an 11% stake in Nikola to supply battery and fuel cell technologies as well as produce the Badger pickup.

The deal was initially viewed as a no-lose situation for GM but the talks became convoluted after short-seller Hindenburg Research lobbed fraud allegations against Nikola and its founder, Trevor Milton, who resigned as the company’s executive chairman on Sept. 21.

Shares of Nikola initially rallied on the news in premarket trading Monday before plummeting. As of 10:52 a.m., Nikola shares were down about 26% to $20.78. GM stock was down 2.2% to $44.09 per share.

Wedbush analyst Dan Ives described the new deal as “a good supply partnership” rather than a “game changer deal” for Nikola.

“In a nutshell, the signing of GM as a partner is a positive but ultimately no ownership/equity stake in Nikola and the billions of R&D potentially now off the table is a major negative blow to the Nikola story,” he wrote in an investor note Monday morning.

The companies said they continue to discuss GM potentially supplying Nikola with battery systems for its planned electric semi-trucks.

Nikola said it will refund all previously submitted order deposits for the Badger, which was dependent on an outside partner such as GM building it.

The allegations by the short seller were published two days after the deal with GM was announced. They have led to inquiries into the company by the Department of Justice and Securities and Exchange Commission. Nikola has said it’s “fully cooperating” with the agencies.

The revised deal kicks off what was already expected to be a volatile week for Nikola stock. Aside from a Wednesday deadline to finalize a deal with GM, insiders will be able to sell for the first time on Tuesday up to 166 million shares of the company that had been prohibited from trading.

A majority of those shares – 91.6 million – are held by Milton, who disappeared from the public eye and social media after being ousted as chairman in September. He resigned after DOJ and SEC started probing the fraud allegations.

Milton’s ownership includes 6 million shares in “founder options” he gave to the early employees, leaving him with 85.6 million shares. There are roughly 360.9 million shares of company stock outstanding, making Milton Nikola’s largest single shareholder.

A total of approximately 161 million shares of our common stock will become eligible for sale beginning Tuesday, according to Nikola’s third quarter SEC filing. An additional 5 million shares may also become eligible for sale beginning, depending on the price of the company’s stock in November.



I reject your reality and substitute my own!

Edited 1 time(s). Last edit at 11/30/2020 12:25PM by NewtonMP2100.
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Re: backsies?!......GM backs out and reworks deal with Nikola.....
Posted by: Carnos Jax
Date: November 30, 2020 12:44PM
And Trevor Milton still walks away with $2 billion....was that in cash?
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