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Nikola shares slide after GM gives up equity stake in smaller reworked, deal that abandons plans to build electric pickup

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CEO and founding father of U.S. Nikola Trevor Milton

Massimo Pinca | Reuters

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General Motors is forgoing a possible 11% fairness stake in Nikola and dropping plans to construct the electrical truck maker’s pickup, the Badger, in a smaller, reworked deal, the businesses introduced Monday.

In September, the automakers introduced a $2 billion deal that gave GM an 11% stake in Nikola for supplying battery and gas cell applied sciences in addition to producing the pickup.

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The deal was anticipated to shut earlier than Sept. 30 however the talks grew to become convoluted following fraud allegations towards Nikola and its founder, Trevor Milton, who resigned as the corporate’s govt chairman on Sept. 21. Since then, two ladies even have now filed sexual assault claims with Utah authorities towards Milton.

Shares of Nikola have been down about 14% in pre-market buying and selling Monday. GM inventory was down lower than 1%.

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