Send me real-time posts from this site at my email
Motley Fool

Nikola Chief Says Company Doesn't Need GM

Nikola (NASDAQ: NKLA) chief executive officer (CEO) Mark Russell said in an interview that the company doesn't need its partnership with General Motors (NYSE: GM), which continues to be negotiated, according to a Bloomberg report.

Nikola and GM announced a strategic partnership agreement just days before Hindenburg Research released a damaging report on Nikola last month. After the stock's significant drop following the report, the two automotive companies went back to the table to renegotiate details of the agreement.

As part of the agreement, GM would manufacture Nikola's proposed Badger pickup truck. Now, CEO Russell says that Nikola has a plan to move forward without the Badger if it can't secure a manufacturing agreement with GM or another partner.

Nikola Badger. Image source: Nikola Corporation.

Russell made it clear that the Badger would only be a part of Nikola's product portfolio with a partnership agreement. "We've been clear all along that we wouldn't build a Badger without an OEM partner," he said in the interview.

The company is also reportedly pursuing a partnership with energy giant BP (NYSE: BP) for a network of hydrogen-fueling stations in North America. Without specifically commenting on the BP talks, Nikola says it plans to have a partner announced before the end of the year. Nikola also has a partnership with auto supplier Robert Bosch to jointly develop fuel-cell technology, which it can use for its semi truck fuel cell electric vehicle (FCEV) offerings that it plans to begin rolling out to the public in 2023.

10 stocks we like better than Nikola Corporation
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Nikola Corporation wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of September 24, 2020

Howard Smith owns shares of Nikola. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.


Source

Popular posts

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue