Nikola shares plunged greater than 20% on the information.
Within the wake of the allegations, GM reminded traders that it had not but closed the cope with Nikola. The brand new association, introduced Monday morning, continues to be only a memorandum of understanding, not a remaining deal. Beneath this deal, GM will merely be a provider to Nikola.
Nikola executives have stated the Badger pickup could be constructed solely by way of an association with an out of doors firm. The corporate has now stated it’ll refund deposits potential prospects had positioned for the truck.
“Nikola is specializing in its core enterprise of manufacturing industrial zero-emission vehicles,” a Nikola spokeswoman stated in an electronic mail.
The 2 corporations will even talk about Nikola presumably utilizing GM’s Ultium battery system, which is able to utilized in GM’s future electrical automobiles.
“This went from a recreation changer deal for Nikola to a very good provide partnership however nothing to jot down residence about,” analysts Daniel Ives and Strecker Backe at Wedbush Securities wrote.