- Nikola fell on Friday after its CEO told Bloomberg it had plans to work alone if the announced deal with General Motors collapsed.
- Negotiations between the two companies are still ongoing, and a December 3 deadline has been set to reach an agreement.
- Nikola CEO Mark Russell said the company needed an OEM partner to make a prototype of the Badger electric pickup truck and leave the car if it could not be found.
- Nikola̵7;s shares have been on the tail ever since Hindenburg Research released a brief report accusing the company of fraud, fraud, and fraudulent investors.
- Visit the Business Insider homepage for more stories.
Nikola extended its one-month denial on Friday after its CEO Mark Russell told Bloomberg in an interview that the electric vehicle startup would work alone if their announced deal with General Motors collapsed.
Shares fell as much as 15% in Friday trades, and less than 50% since Hindenburg Research released a brief report accusing the company of fraud, fraud, and misleading investors in late September.
That brief report came two days after Nikola announced a $ 2 billion partnership with General Motors. That deal has not yet been closed, and talks are ongoing, with a December 3 deadline set to reach an agreement.
In the proposed deal, General Motors will be tasked with manufacturing the electric truck of Nikola, the Badger. But Russell said the company was willing to give up the Badger pickup truck if it could not deal with an OEM partner, according to an interview with Bloomberg.
“Badger is part of our discussions with GM. And we are very clear that we will not build a Badger without an OEM partner,” Russell said.
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But Nikola has a “base plan” if the deal with General Motors is turned off, according to the interview.
“We have the ability and we have a basic plan to do it ourselves. If we have a partner, it gives us the ability to consider walking faster and helps reduce risk,” Russell told Bloomberg.
However, a deal with General Motors is still possible. According to Bloomberg, General Motors may have asked for an increased stake in Nikola due to its depressed valuation since the original deal was announced last month. Another option is for General Motors to receive warrants to Nikola.
And regarding the ambitions of this fuel station, Russell said Nikola is still targeting a year-end agreement with an energy company. Nikola held talks with BP, Bloomberg reported last month, but those talks were put on hold due to the negative impact of the Hindenburg report, which led to the resignation of its founder, Trevor. Milton.
And if no agreement is reached, Nikola plans to develop hydrogen refueling stations alone, according to the interview.
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