Nikola Shares Pop as General Motors Talks Continue

Nikola shares jumped after GM CEO Mary Barra said talks with the electric-vehicle maker about a potential partnership were continuing.
Author:
Publish date:

Nikola  (NKLA) - Get Report shares jumped Thursday after General Motors  (GM) - Get Report Chief Executive Mary Barra said that talks with the electric-vehicle maker about a potential partnership were continuing. 

GM said in September that it would pay $2 billion for an 11% stake in Nikola. But a Securities and Exchange Commission investigation into fraud claims that were levied by short seller Hindenburg Research put the deal into question. 

The two sides have the option to terminate the agreement if a deal is not reached by Dec. 3. 

GM plans to accelerate its electric vehicle production plans, Barra told analysts on the Detroit automaker's earnings call. 

She said that demand for the company's upcoming Hummer electric truck and Cadillac Lyriq electric SUV is exceeding expectations.  

GM plans to invest $20 billion to develop electric cars and self-driving vehicles over the next five years. 

Meanwhile, Nikola's stock has dipped in the weeks since company Founder Trevor Milton stepped down amid the allegations made by Hindenburg. 

"Nikola is truly in my blood and always will be, and the focus should be on the company and its world-changing mission, not me," Milton said at the time of his decision. 

Nikola's stock fell nearly 25% over the past four weeks on concern that Milton's exit would jeopardize the GM deal. 

At last check the shares were up 8.3% to around $20.