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UPDATED: SEC Looking into Nikola Claims; Will GM Pull Out of Nikola Deal?

UPDATED: SEC Looking into Nikola Claims; Will GM Pull Out of Nikola Deal?

Small Cap Steve

Monday, September 14 2020, 06:04:59:PM

After the market, Bloomberg reported the SEC is assessing the merits of the accusations made by short-seller Hindenburg Research. The claims in the short report include: rolling a truck down a hill to suggest a working prototype, false claims about proprietary battery tech, insider selling, false claims of a solar powered building, and more.

Rumors are already starting to swirl that General Motors may be looking to pull out of the arrangement. According @Fxhedgers CNBC had a pundit claim General Motors (NYSE: GM) is looking to pull out of their recent agreement with Nikola Motors (NASDAQ: NKLA). The Deep Dive has yet to verify @Fxhedgers tweet.

The General Motors-Nikola deal made headlines last week when a deal was announced where General Motors would receive an 11% equity stake in the upstart electric truck manufacturer and an agreement to build the Nikola Badger for both the battery electric vehicle and fuel cell electric vehicle variants as part of the in-kind services.

The announcement made a splash all over social media.

Neither company has made a comment relating to the termination rumors. Although General Motors did make a statement earlier claiming they made appropriate diligence prior to entering the agreement.

Shares of Nikola are down 8.35% in after hours trading to a price of $32.80.

Information for this briefing was found via Nikola, CNBC, Bloomberg, Twitter, and Hindenberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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