Nikola shares jump on renewed hope for GM partnership

Nikola Corp. shares climbed sharply in premarket trading on Wednesday after General Motors Co. President Mark Reuss’ comments during a television interview rekindled hopes for a partnership between the two companies.

File photo used for representational purpose. (Courtesy: Twitter/@Nasdaq)
File photo used for representational purpose. (Courtesy: Twitter/@Nasdaq)

The electric vehicle startup and GM have been in talks to decide the terms for a proposed strategic partnership, which was announced in September. But it has since faced some uncertainty after Nikola and its founder and former Chairman Trevor Milton were accused of deception.

The accusations eventually led to Milton’s exit from the firm, and Nikola shares, which were up more than 300% this year before the allegations came to light, have now plunged 74% from their record high in June.

Reuss, however, said in interview on CNBC on Wednesday that he was “totally excited" about the opportunity to work with Nikola.

His statements closely follow comments from Nikola Chief Executive Officer Mark Russell last week, when he said that while talks between the two companies were ongoing, Nikola can revert to a “base plan" without GM’s help, in case the deal falls apart.

Nikola shares rose more than 8% in trading before the opening bell.

First Published Date: 21 Oct 2020, 20:28 PM IST
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