On Tuesday 8th September 2020, Nikola and General Motors announced a strategic partnership that begins with the Nikola Badger and carries cost reductions through Nikola’s programs, including: Nikola Badger, Nikola Tre, Nikola One, Nikola Two and NZT. As part of the agreement, Nikola will utilize General Motors’ Ultium battery system and Hydrotec fuel cell technology, representing a key commercialization milestone for General Motors.

In Short:

  • Nikola will not do the engineering and manufacturing, job of GM
  • Nikola is even using the battery and hydrogen technology of GM
  • The Badger is anticipated to enter production by year-end 2022

How did stakeholderes react?

Following the announcement of the partnership between Nikola and GM, Nikola shares have strongly increased in value, rising from 30.60 EUR to 46.00 EUR, but dropped back to 36.20 EUR by 9th September, 8pm.

On Thursday 10th September, an analyst at Hindenburg Research claimed CEO Trevor Milton of Nikola Motors has misrepresented its capabilities for years. 

In the report “Nikola: How to Parlay An Ocean of Lies Into a Partnership With the Largest Auto OEM in America,” written by Nate Anderson, a CFA at Hindenburg Research, noted that “after extensive research, we have taken a short position in shares of Nikola Corp.” Among the accusations, the “breakthrough” battery system Milton said Nikola was working on last year doesn’t exist and Nikola has claimed to have designed technology and vehicle components purchased from other companies as its own, according to the report. “We have never seen this level of deception at a public company, especially of this size,” Anderson said.

Nikola responded with a short press release claiming that Hindenburg is an activist short-seller and had published the allegations in order to profit from dropping Nikola shares. Nikola announced taht they would refute all allegations and take legal action against Hindenburg.

However, in the days after the Hindenburg publishing shares of Nikola fell to EUR 27,10 by Friday 11th September at 8pm.

We keep you posted.

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