General Motors President Touts Partnership With Nikola

Nikola and GM are negotiating a strategic partnership, which last month was unveiled as GM investing $2 billion in the electric-vehicle maker.
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Nikola  (NKLA) - Get Report shares rose on Wednesday after General Motors  (GM) - Get Report President Mark Reuss said he’s “totally excited about the opportunity” to collaborate with the electricv-ehicle company.

Reuss made the comments on CNBC.

Nikola and GM are negotiating the terms of their strategic partnership, which last month was unveiled as GM investing $2 billion in the electric-vehicle maker. 

The apple cart was upset after short-seller Hindenburg Research accused Nikola and its founder and former chairman, Trevor Milton, of fraud.

The Securities and Exchange Commission is probing Nikola, following Hindenburg’s accusations.

“On September 11, Nikola’s legal counsel proactively contacted and briefed the U.S. Securities and Exchange Commission regarding Nikola’s concerns pertaining to the Hindenburg report," the company told TheStreet. "Nikola welcomes the SEC’s involvement in this matter.”

Nikola recently traded at $22.30, up 7.6%. The shares have dropped 72% from their June 9 peak.

GM recently traded at $36.59, up 2.8%. The stock slid 5% year to date through Tuesday.

Nikola CEO Mark Russell said last week that negotiations on the deal were continuing.

He also told Bloomberg that the company wouldn’t waver if it couldn't finalize the partnership with General Motors.

“We have the ability, and we have a base plan of doing it ourselves,” he said. 

“If we have a partner, that just enables us to consider going faster and helps reduce the risk. We’ve proven over the years that we are a partnership company when those things are available to us.”

Last month, Wedbush Securities analyst Daniel Ives downgraded shares of Nikola to sell, largely due to the questions over Nikola’s technology and business model.

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