Cooperation with Nikola
Due to the publication of a report on the General Motors website mentioning the cooperation with Nikola, the shares of the electric truck manufacturer jumped from $22 to $27.34 in two short trading days to 24.45%.
In the message of the company, the president of GM Mark Reuss has listed all projects connected with technologies of electric transport. Among them is production of Nikola Badger pickup truck, for which GM will supply its Ultium batteries and Hydrotec fuel cells.
The deal, under which the American concern planned to acquire an 11% stake in Nikola and start joint production of the pickup, became known in early September. However, it has not developed since then: a reputable scandal that accused Nikola of deceiving partners and investors prevented it.
In a recent announcement on the General Motors website, there is no further news on the future of the deal. But only the mention of a potential project was enough to boost the price of the startup shares on Wednesday.
Investors probably haven't finished reading the text, where GM notes that "the deal is not closed yet". The deadline for the deal between GM and Nikola is set for 3 December.
In the report GM Mark Reuss notes the importance of switching to electrical technology and reports that the company aims to produce 1 million electric vehicles by mid-decade.
Problems for the Nikola startup, which led to a delay in the deal with GM, arose in September this year. First, the shares of its competitor Tesla rose 34% on news of a possible agreement with General Motors. Then a revealing report by Hindenburg Research was published, which collapsed the shares by 12% and the following days by 30%.
The report said that the startup management misled society about its own technologies and production capabilities. Hindenburg Research claimed that the CEO of Nikola Trevor Milton "turned a lie into a $20 billion public company". Due to the scandal, Milton resigned on 21 September.
According to Barron's, GM and Nikola are still discussing the details of the joint deal, despite all the difficulties.