Nikola stock soars after confused investors think GM deal has closed

lol —

Merchants mistook a month-mature GM webpage for a brand new announcement.

GM CEO Mary Barra.

Accomplish bigger / GM CEO Mary Barra.

Drew Angerer/Getty Photography

Nikola stock rose 15 p.c on Wednesday after careworn merchants it sounds as if mistook a month-mature GM web pages for a stamp-new announcement relating to the companies’ pending agreement. The stock is up one more 7 p.c as I write this on Thursday morning.

At this time prior to 10am ET on Wednesday, folk began sharing hyperlinks to this GM page on social media.

“We signed an agreement with Nikola to engineer and set apart the Nikola Badger,” the GM page stated. Nikola’s stock stamp soared from $22.23 at 9: 30am to $24.94 at 10am—a 12-p.c leap in 30 minutes.

On Reddit, commenters identified that the page stated “the transaction has no longer yet closed.” However folk shrugged that off, arguing that GM don’t acquire posted relating to the deal if closing wasn’t approaching. One commenter took the stock stamp leap as additional affirmation of the news.

However they were improper. It wasn’t a brand new GM announcement. The page has been on GM’s web pages since a minimal of October 5. An archive of the page from that date entails exactly the the same language about Nikola—albeit without the disclaimer relating to the deal no longer being closed yet.

GM has confirmed to Barrons and varied news outlets that talks with Nikola are ongoing.

GM CEO Mary Barra is scheduled to purchase half in a Barclays automobile convention this afternoon. Nikola followers and merchants are hoping the occasion will characteristic an announcement about Nikola. However there doesn’t appear to be any motive to disclose this might perhaps perhaps.

It be additionally no longer certain that Nikola would assist from closing the take care of GM. That deal requires Nikola to pay GM a complete bunch of thousands and thousands of greenbacks to set apart and possess the Badger—money Nikola couldn’t be ready to spare. Trucking is a capital-intensive commerce, and Nikola might perhaps perhaps wish every buck it has to acquire its flagship heavy vehicles to market. Final month, Nikola CEO Value Russell stated that the Badger was an “entertaining and bright venture” nonetheless that Nikola was “thinking heavy vehicles and hydrogen infrastructure.”

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