An anonymous reader quotes a file from Ars Technica: Issues put going downhill for aspiring hydrogen truck-maker Nikola. Nikola’s stock plunged on Monday morning because the corporate launched that a previously launched tackle General Motors used to be no longer going to shut. As a substitute, the two corporations signed a “non-binding memorandum of figuring out” connected to the utilize of GM’s hydrogen gasoline cell technology in Nikola’s future semi vehicles. GM will no longer put shut a stake in Nikola as at the delivery deliberate. Nikola’s stock is down 26 percent as I write this on Monday morning. The stock is down 58 percent since September 8, the day Nikola at the delivery launched the GM deal.
The guidelines technique that Nikola is canceling the Badger, a deliberate pickup truck that critics possess long derided as vaporware. Below Nikola’s September tackle GM, GM used to be presupposed to invent and invent the Badger on a payment-plus basis. The deal would possess enabled Nikola to promote a pickup truck it did not in any other case possess the capacity to make. But it certainly used to be anxious to ogle how Nikola used to be going to dangle a revenue selling what would possess in fact been a re-badged GM product. Furthermore, it wasn’t certain that Nikola had sufficient cash to finance the pattern of the Badger alongside the corporate’s semi vehicles and a deliberate community of hydrogen fueling stations. With the hype round Nikola cooling, Nikola would per chance additionally objective no longer be ready to enhance the major cash from Wall Avenue.
The herd intuition among economists makes sheep survey like fair thinkers.