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Nikola shares plunge after CEO dodges questions about GM’s trading

Nikola’s share price plummeted Wednesday after CEO Mark Russell refused to provide assurance that the electric truck maker’s partnership with General Motors had not collapsed.

Arizona-based start-up stocks trade pre-market at 8:53 am after Russell avoided asking questions about the $ 2 billion GM trade prior to the deadline for the GM trade on December 3. It fell by about 15.4% to $ 29.20.

“I can’t comment on the ongoing discussion,” Russell told CNBC host Jim Cramer on Tuesday, adding that Nikola was “interested” in GM’s car and hydrogen fuel cell systems. ..

Russell avoided it again when Kramer completely asked him to provide him with “some reassurance” that Nicola and GM would close the deal. Both companies can leave if they don’t close by next Thursday.

“I can’t do that, Jim,” Russell said. “If you have something to tell, I’ll let you know.”

GM spokesman David Barnas, who was asked about the status of the negotiations late Wednesday morning, told the post, “Know that the deal has not been completed and there is no new information.”

GM and Nicola haven’t provided substantial up-to-date information on the negotiations since they announced plans for a partnership in early September. The agreement will allow GM to acquire an 11% stake in the design and manufacture of Nicola’s all-electric Badger pickup trucks, giving Nicola access to GM’s Ultrium and Hydrotec fuel cells.

Nicola is focusing on developing electric semi-trucks, but Russell has suggested that badgers will never get off unless the company signs a GM contract or finds another partner.

“Looking at our core plan, it’s about heavy trucks and hydrogen,” Russell told CNBC. “Badgers aren’t included in the core plan, so I said I needed a partner from the beginning. So if you have a partner, it works. If you don’t have one, you don’t.”

GM’s partnership has been clearly volatile since the poor-selling investment firm Hindenburg Research accused Nikola and its founder Trevor Milton of fraud in a report released two days after the deal was announced. .... Milton, who resigned as chairman of Nicola in September, also denied that he had been accused of sexually assaulting two women as a teenager.

Nicola initially stated that it would close the deal by September 30, but that date passed without reaching the final terms.

GM did not immediately respond to a request for comment on Wednesday morning. Detroit car makers’ stock prices were $ 45.65, down 1.7% in pre-market trading at 8:02 am.

Nikola shares plunge after CEO dodges questions about GM’s trading

Source link Nikola shares plunge after CEO dodges questions about GM’s trading

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