Nikola’s deal with GM was supposed to close today—it didn’t:
When Nikola and GM announced a partnership on September 8, GM said it expected the deal to close by September 30. Now September 30 has arrived, and the deal hasn't closed. Media reports indicate that the deal is unlikely to close today.
A GM spokesman confirmed the delay in an email to Ars. "Our transaction with Nikola has not closed. We are continuing our discussions with Nikola and will provide further updates when appropriate."
[...] September 30 isn't a hard deadline. According to Nikola's regulatory filing about the deal, the transaction can be terminated by either party if it hasn't closed by December 3. So talks between the companies could drag on for another two months.
Previously:
Nikola Founder Bought Truck Designs From Third Party
Related Stories
Nikola founder bought truck designs from third party:
The original design for Nikola's flagship truck was purchased by founder Trevor Milton from a designer in Croatia, according to two people with knowledge of the matter, despite company claims in a 2018 lawsuit that the vehicle was initially designed by Mr. Milton "in his basement.."
The truck, the Nikola One, is at the centre of a $2 billion lawsuit with Tesla, in which Nikola alleges its rival infringed on its patents. Nikola claims in that lawsuit that Mr. Milton began designing the model in 2013, with other company staff later working on it.
In a rebuttal to the lawsuit filed last week, Tesla alleged that Nikola could not protect the designs because they did not originate from the company itself, but from Adriano Mudri, a designer based in Croatia.
The arstechnica article didn't include any links.
Nikola Founder Bought Truck Design From Designer's College Portfolio: Report:
And Nikola's sub-contracture allegedly doesn't end with technology, as a Financial Times report alleges even Nikola's design for the hydrogen-powered One semi-truck was outsourced from Croatia.
Previously:
Nikola Stock Plunges 26% after Fraud Claims Complicate Hydrogen Plans
New Report Claims Widespread Deception by Nikola Motor and Founder Trevor Milton
Nikola Motors Opening Reservations for Badger Electric Pickup Truck on June 27
Nikola Semi Startup Shines on Wall Street With $34BN Valuation
At this point, Nikola's business plan seems to be resembling the movie The Producers business plan more than anything.
Electric vehicle startup Nikola Corp. has announced it had filed for Chapter 11 bankruptcy:
Nikola now joins a line of EV startups that fell into bankruptcy over the past year. While the Biden-Harris administration went full-speed ahead with a vision of EVs replacing gas-powered vehicles, electric-vehicle production has become a bad bet for the companies that jumped into the vision head-first. Consumers just never got on board with the plan.
With Trump planning to end federal EV mandates and legislation seeking to stop tax credits for the purchase of new EVs, the list of failed EV startups might continue to grow.
[...] The company went public in 2020, according to Bloomberg, through a deal with a special-purpose acquisition company. Nikola's stock went up after the transaction was closed, but shortly after, Bloomberg revealed its founder, Trevor Milton, had overstated the capability of the company's debut truck. He was later convicted on fraud charges.
"Like other companies in the electric vehicle industry, we have faced various market and macroeconomic factors that have impacted our ability to operate," Nikola president and CEO Steve Girsky said in a recent statement on the company's bankruptcy filing.
Previously:
- Nikola Stock Craters After Cancellation of Major Garbage Truck Order
- Nikola Stock Falls 14 Percent after CEO Downplays Badger Truck Plans
- Nikola's Deal With GM Was Supposed to Close Today—It Didn't
- Nikola Founder Bought Truck Designs From Third Party
- Nikola Stock Plunges 26% after Fraud Claims Complicate Hydrogen Plans
- New Report Claims Widespread Deception by Nikola Motor and Founder Trevor Milton
https://arstechnica.com/cars/2020/10/nikola-ceo-downplays-badger-truck-as-gm-negotiations-drag-on/
Nikola CEO Mark Russell downplayed the company's Badger pickup truck in comments to the Financial Times on Thursday.
"The Badger was an interesting and exciting project to some shareholders, but our institutional shareholders are mostly focused on the business plan," Russell said. "Our core business plan since before we became publicly listed always focused on heavy trucks and hydrogen infrastructure."
Russell's comments were published after markets closed on Thursday. Nikola's stock price plunged on Friday morning and is currently down about 14 percent for the day.
Previously:
Nikola's Deal With GM Was Supposed to Close Today—It Didn't
Nikola Founder Bought Truck Designs From Third Party
As recently as September 8, 2020 the stock was trading at $50.50
(Score: 0) by Anonymous Coward on Thursday October 01 2020, @06:37AM
For a fraction of an instant, I almost gave a shit.
(Score: 2) by Runaway1956 on Thursday October 01 2020, @06:37AM
Nikola's sole vehicle, the Motorless Poseur, has been rejected by GM because it is both motorless, and a poseur.
“Take me to the Brig. I want to see the “real Marines”. – Major General Chesty Puller, USMC
(Score: 1, Funny) by Anonymous Coward on Thursday October 01 2020, @06:54AM (1 child)
Maybe Nikola will close tomorrow.
(Score: 2) by FatPhil on Thursday October 01 2020, @08:11AM
Its dip clearly just made it a great value stock, clearly!
Great minds discuss ideas; average minds discuss events; small minds discuss people; the smallest discuss themselves
(Score: 0) by Anonymous Coward on Thursday October 01 2020, @07:16AM (1 child)
Tesla motors, NIkola motors, Edison motors.
Swedes need to rethink. Fuck ericson - so last century.
THOR MOTORS. It's the future.
(Score: 3, Funny) by PiMuNu on Thursday October 01 2020, @11:31AM
Norn motors: It's the past, present and future
(Score: 2) by Spamalope on Thursday October 01 2020, @02:17PM (6 children)
Doesn't this put GM in a position to keep increasing fees until all of Nikola's profits are ceded to GM? Or to keep changing terms seemingly at random until they've got a contract that leaves GM with the ability to end Nikola (a competitor!) as a company at any time? Or transfers Nikola IP to GM. (aka - a FB or Apple IP grab buried in there)
If I weren't already so concerned that I stayed away from investment in Nikola, I would be now...
What negotiating power do they actually have?!?
(Score: 2) by takyon on Thursday October 01 2020, @02:22PM (4 children)
Nikola (NKLA) May Be Able To Get Past the Current Confidence Crisis if It Is Able To Close the Partnership Deal With General Motors (GM) Soon [wccftech.com]
[SIG] 10/28/2017: Soylent Upgrade v14 [soylentnews.org]
(Score: 2) by DannyB on Thursday October 01 2020, @02:27PM (3 children)
Does Nikola actually have anything?
A working prototype?
A powertrain?
A workable plan to build a refueling infrastructure with a realistic amount of capital?
A plan for how to scale? Especially their fuel cells?
Wasn't Nikola's plan with GM for Nikola to use GM's technology?
Q. How much did Santa's sled cost?
A. Nothing. It was on the house.
(Score: 2) by richtopia on Thursday October 01 2020, @04:30PM (2 children)
Nothing now. Even without a working chassis they used to have a hip new brand that GM could leverage in the electric vehicle market (sexy sells electric vehicles). But now their brand is ruined.
I suspect the business model was to create a lot of hype then sell to someone who is qualified to make vehicles. GM probably could have delivered on that too; take the Badger design and stick it on the Hummer EV chassis when it is delivered. Even buying them for patents or talent seems useless now; any engineer worth their salt will be fleeing the company if they haven't already. I don't know their IP library but I suspect it is small.
(Score: 2) by DannyB on Thursday October 01 2020, @06:02PM (1 child)
They have a design patent on making a truck aerodynamic. They are suing Tesla over that.
It seems to be an Apple proven business model (bouncy scrolling, rounded corner rectangles). In a foreign (non US) court, Apple (years ago) actually argued that Samsung could have made their tablets not as thing or light weight. Yes, really. Seriously. No sarcasm.
But then Apple does have actual products and know how.
Q. How much did Santa's sled cost?
A. Nothing. It was on the house.
(Score: 0) by Anonymous Coward on Thursday October 01 2020, @11:12PM
Wait, over this: https://en.wikipedia.org/wiki/Tesla_Cybertruck#/media/File:Tesla_Cybertruck_outside_unveil_modified_by_Smnt.jpg [wikipedia.org] ?
Who wants to break it to them that it's not aerodynamic?
(Score: 1) by khallow on Thursday October 01 2020, @08:45PM
(Score: 0) by Anonymous Coward on Thursday October 01 2020, @07:33PM
What, does the author of this piece own lots of Nikola stock or something? There is an implicit complaint here about the deal not closing. The actual deal, as the author stated, is that they don't have a time scale, but they do have until December 3rd after which either party can walk away. Especially with the stuff that recently came out, boo-hoo for you if you don't like the fact that they might take more time to look at it.