| From: kidl | 9/29/2020 8:49:03 AM | | | | | | Will GM's deal with Nikola still close tomorrow?
Sep. 29, 2020 4:44 AM ET|About: Nikola Corporation (NKLA)|By: Yoel Minkoff, SA News Editor
"Our transaction with Nikola (NASDAQ: NKLA) has not closed," a GM spokesperson said Monday in an email. "We are continuing our discussions with Nikola and will provide further updates when appropriate or required." The deal was expected to close by September 30.
Compare that to a statement from GM last week, which said it remained committed to the agreement as outlined on Sept. 8. The deal calls for GM to build the Nikola Badger electric pickup with its proprietary Ultium batteries and provide fuel cells for the Badger and Nikola's semitrucks.
"Even if Nikola completely imploded and went out of business tomorrow, GM financially would not be hurt by that," said David Whiston, senior equity analyst for Morningstar. "If Nikola is not a fraud, the long-term upside option value of the deal is still there for GM."
Earlier this month, GM CEO Mary Barra defended the company's $2B, non-cash deal with Nikola, saying it conducted "appropriate diligence" before announcing the agreement.
Compounding the recent troubles, two women have filed sexual abuse complaints against Nikola founder Trevor Milton that stretch back more than 15 years ago, though Milton has "strongly denied" the allegations.
NKLA -3.1% premarket to $18.70/share.
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| From: kidl | 9/30/2020 8:30:03 AM | | | | | | GM won't finalize deal with Nikola tomorrow - CNBC
Sep. 29, 2020 5:43 PM ET|About: General Motors Company (GM)|By: Jason Aycock, SA News Editor
General Motors (NYSE: GM) will not finalize its deal with Nikola (NASDAQ: NKLA) by tomorrow, CNBC reports.
The two were trying to finish the deal by month-end after announcing it on Sept. 8, but discussions are ongoing, according to the report.
That means a deal could still come within days, or fall apart entirely. |
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| From: roto | 10/15/2020 10:30:27 AM | | | | | | finance.yahoo.com
Here’s Why Worm Capital is Avoiding Nikola Corp (NKLA) Stock
damning in a big way.
it will be interesting to see how GM handles this. maybe they should tank their stupid
looking Hummer and go with the Badger. |
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| From: kidl | 10/19/2020 9:03:08 AM | | | | | | Nikola defended at JPMorgan with restructured deal with GM called probable
Oct. 19, 2020 8:12 AM ET|About: Nikola Corporation (NKLA)|By: Clark Schultz, SA News Editor
There is still hope for a Nikola (NASDAQ: NKLA) partnership with General Motors (NYSE: GM), according to JPMorgan.
"We believe Nikola and General Motors are still likely to enter into a strategic partnership by December 3rd. Nikola needs access to GM's supply-chain, engineering resource, the Ultium battery and Hydrotec fuel cells to de-risk the Class 8 truck initiative. GM needs to realize a return on billions of dollars of investment in Hydrogen fuel cells, and Nikola might be the best available option. The Badger initiative might be of more interest to GM than the post-Milton Nikola, for whom it seems to be a distraction," notes analyst Paul Coster.
Coster also observes that the Nikola partnership is already promoted by GM as one of six initiatives that constitute the automaker's EV Ecosystem and it is the only named initiative to exploit GM's Hydrotec fuel cell technology.
A probable scenario seen by JP for Nikola is that the deal closes with the original terms or it is re-engineered for a narrower scope that eliminates or downsizes the Badger initiative.
JP keeps an Overweight rating on Nikola.
Last Friday: Nikola -15% on CEO's 'go it alone' comments. |
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| From: kidl | 11/25/2020 8:17:34 AM | | | | | | Nikola tumbles on concerns over GM deal, gauntlet of stock
Nov. 25, 2020 2:47 AM ET Nikola Corporation (NKLA) By: Yoel Minkoff, SA News Editor 28 Comments
- No comment...
- After racing higher with green energy names on Tuesday, Nikola (NASDAQ: NKLA) shares fell back nearly 8% in AH trading following CEO Mark Russell's interview on CNBC's Mad Money with Jim Cramer.
- He failed to reassure investors that the company's $2B deal with General Motors (NYSE: GM) would go through, echoing a similar position the automaker took when it held an investor conference last week (both sides can walk away if a deal isn't finalized by Dec. 3).
- Russell also declined to speculate about what ousted founder Trevor Milton plans to do with the 85.6M shares (24% stake in the company) he owns after a lock-up period ends on Dec. 1.
- Milton resigned after the DOJ and SEC began investigating allegations of fraud raised by short-seller Hindenburg in September.
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| From: kidl | 11/30/2020 8:33:46 AM | | | | | | Nikola Signs MOU with General MotorsPR Newswire
PHOENIX, Nov. 30, 2020
PHOENIX, Nov. 30, 2020 /PRNewswire/ -- Nikola Corporation (NASDAQ: NKLA) today announced the signing of a non-binding Memorandum of Understanding ("MOU") with General Motors for a global supply agreement related to the integration of GM's Hydrotec fuel-cell system into Nikola's commercial semi-trucks. This supersedes and replaces the transaction announced on September 8, 2020.
Under the terms of the MOU, Nikola and GM will work together to integrate GM's Hydrotec fuel-cell technology into Nikola's Class 7 and Class 8 zero-emission semi-trucks for the medium- and long-haul trucking sectors. As previously announced, Nikola expects to begin testing production-engineered prototypes of its hydrogen fuel-cell powered trucks by the end of 2021, with testing for the beta prototypes expected to begin in the first half of 2022. In addition, Nikola and GM will discuss the potential for the utilization of GM's versatile Ultium battery system in Nikola's Class 7 and Class 8 vehicles.
"We are excited to take this important step with GM, which provides an opportunity to leverage the resources, strengths and talent of both companies," said Mark Russell, Chief Executive Officer of Nikola. "Heavy trucks remain our core business and we are 100% focused on hitting our development milestones to bring clean hydrogen and battery-electric commercial trucks to market. We believe fuel-cells will become increasingly important to the semi-truck market, as they are more efficient than gas or diesel and are lightweight compared to batteries for long hauls. By working with GM, we are reinforcing our companies' shared commitment to a zero-emission future."
The agreement between Nikola and GM is subject to negotiation and execution of definitive documentation acceptable to both parties. The MOU does not include the previously contemplated GM equity stake in Nikola or development of the Nikola Badger. As previously announced, the Nikola Badger program was dependent on an OEM partnership. Nikola will refund all previously submitted order deposits for the Nikola Badger. |
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| From: Sr K | 11/30/2020 2:02:28 PM | | | | | | WSJ
General Motors Will No Longer Take a Stake in Nikola
Shares in the electric-truck startup slide after companies scale down their supply agreement
GM will supply fuel cells to Nikola but it scrapped plans to build an electric pickup truck for the startup.
PHOTO: PATRICIA BECK/ZUMA PRESS
By
Updated Nov. 30, 2020 1:05 pm ET
General Motors Co. GM will no longer take an equity stake in electric-truck maker Nikola Corp. NKLA -under a stripped-down agreement revealed Monday, a significant retrenchment from an earlier pact that fueled investor enthusiasm for both companies.
Under the revised deal, GM still intends to provide Nikola with fuel-cell technology but it has nixed plans to take an 11% stake in the Phoenix-based startup in exchange for supplying engineering work and other services.
The Detroit auto maker has also scrapped plans to build an electric pickup truck called the Badger for Nikola, a key part of an earlier agreement outlined in September. That deal got delayed after a negative short seller’s report raised questions about the readiness of some aspects of Nikola’s business, allegations the company said were false and misleading.
The original agreement bolstered Nikola’s status as one of several highflying green-vehicle startups drawing attention from Wall Street. GM’s lending of its engineering and manufacturing expertise, and being granted a spot on Nikola’s board, had been seen as a validation of Nikola’s business model and growth prospects.
For GM, the Badger piece of the deal had been seen as a boost for its broader plans to license its electric-vehicle technology, the potential of which has helped lift its share price in recent weeks. |
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