GM Contract Signing with Nikola Motors Looks Delayed, as Talks Continue
It’s been a rough September for Nikola Motors (NKLA), and the company’s future is certainly up in the air right now. And a new iteration of the journey has just come to light.
On Tuesday, it was announced that GM would be pushing back its 11% market share contract signing with Nikola Motors, as reported by the Detroit Free Press. The contract has been 10 years in the making, and was expected to close today, September 30, 2020. Both sides have until December 3, 2020 to make a deal.
While the automobile giant is likely going to renegotiate terms with the electric vehicle (EV) company to-be, it still may not bode well for them. Still, GM has said they plan to complete the deal with Nikola, in spite of the company’s allegations.
The decision was likely made after Nikola faced a saga of scrutiny, between Hindenburg outing the EV company’s fraudulent prototype, founder Trevor Milton stepping down, and, subsequently, the company’s shares price dropping more than 18%.
GM released a statement on Tuesday, which said, “Our transaction with Nikola has not closed. We are continuing our discussions with Nikola and will provide further updates when appropriate or required.”
At the time of writing, Nikola Motors (NKLA) shares are worth $19.83, up 10.91% from yesterday.