By no means thoughts —
GM will present hydrogen gasoline cells for Nikola’s semis, but that’s it.
Issues protect going downhill for aspiring hydrogen truck-maker Nikola.
Nikola’s stock plunged on Monday morning because the firm launched that a previously launched deal with General Motors used to be no longer going to shut. As an different, the 2 companies signed a “non-binding memorandum of belief” linked to the exercise of GM’s hydrogen gasoline cell technology in Nikola’s future semi trucks. GM is no longer going to take a stake in Nikola as at the starting place planned.
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 starting place launched the GM deal.
No extra Badger
The news capability that Nikola is canceling the Badger, a planned pickup truck that critics include long derided as vaporware. Beneath Nikola’s September address GM, GM used to be presupposed to scheme and scheme the Badger on a value-plus basis.
The deal would include enabled Nikola to promote a pickup truck it didn’t in every other case include the ability to form. However it absolutely used to be fascinating to gape how Nikola used to be going to scheme a earnings selling what would include if truth be told been a re-badged GM product.
Furthermore, it wasn’t determined that Nikola had ample money to finance the development of the Badger alongside the firm’s semi trucks and a planned network of hydrogen fueling stations. With the hype around Nikola cooling, Nikola would perchance merely no longer gain a way to gain the necessarily money from Wall Road.
The GM deal used to be negotiated below Nikola founder Trevor Milton. However Milton used to be pressured to step down as Nikola’s govt chairman in mid-September. That used to be when news broke that Nikola’s first semi truck, the Nikola One, had never been purposeful—despite Milton’s claims to the contrary. A promotional video of the truck “in circulate” genuinely featured the automobile rolling down a protracted, shallow hill.
Since Milton’s departure, Nikola CEO Designate Russell has downplayed the Badger project. In October, he described the Badger as an “attention-grabbing and thrilling project” but no longer allotment of Nikola’s “core industry notion.” However whereas Russell downplayed the Badger, many of Nikola’s retail investors regarded as if it would perchance well include their heart diagram on Nikola closing the GM deal. When at a loss for words investors mistook a month-worn GM webpage for an announcement that the deal had closed earlier this month, Nikola’s stock soared 15 percent.
Now all americans knows that the usual GM deal—and the Badger truck—don’t seem to be going to happen. Nikola says that this can refund prospects who put down a deposit for the Badger.
It be no longer determined whether or no longer the dissolution of the deal used to be pushed extra by Nikola or by GM. We argued in September that the deal used to be intently tilted in GM’s desire, with Nikola placing up a complete bunch of millions of bucks to scheme accept entry to to GM’s technology and technology. GM wasn’t going to put any money into Nikola.
Alternatively, a deal would perchance merely include conferred some legitimacy on Nikola and risked reputational wretchedness to GM if Nikola in a roundabout way failed—namely after the Nikola One shenanigans came to light.
“Heavy trucks remain our core industry and we’re 100% centered on hitting our trend milestones to command excellent hydrogen and battery-electrical industrial trucks to market,” Russell acknowledged in a Monday press liberate.