The partnership between the Nikola chairman and GM CEO have helped Nikola's stock soar by 53%, while GM jumped a little over 9% in premarket trading. The exciting new partnership is said to have the Badger rolling out by the end of 2022.
Nikola specializes in zero-emission trucks using hydrogen fuel cell tech. Combining their technology and special Ultium battery platform system with GM's engineering and manufacturing expertise will not only be a fantastic blend of business, it will also make GM the exclusive global supplier of Nikola's fuel cells, except for Europe's class 7/8 trucks. It will also take some pressure off of GM, since Wall Street was pushing for them to spin off into the electric vehicle business. Nikola's founder and Executive Chairman Trevor Milton was also quotes praising the partnership, calling it a perfect relationship.
But not all is perfect in electric vehicle paradise. After Nikola's huge pop in stocks, it sharply dropped 14% after short-seller firm Hindenburg Research accused Nikola of fraud. The firm also accused Milton of making false claims about Nikola's tech to help make partnerships with top automakers. Nikola is denying Hindenburg's allegations, calling these claims a "hit job", and is considering legal options.
While Nikola's stock may have taken a hit, GM doesn't seem to be going anywhere. GM said "We are fully confident in the value we will create by working together. We stand by the statements we made in announcing the relationship," in a statement from CNBC.
Hindenburg claims to have evidence, including recorded phone calls and text messages, that prove its allegations of Nikola's false statements. Nikola has said in a statement from CNBC that this is not a research report, and isn't accurate. Instead, it's a "short sale profit driven by greed."
Nevertheless, the claims do not seem to be affecting GM and Nikola's relationship at this time.