Dec 1, 2020 - Economy

What the market thinks of Nikola's GM deal

Data: FactSet Chart: Axios Visuals
Data: FactSet Chart: Axios Visuals

Nikola Corp.'s stock plummeted yesterday on the news that GM was no longer taking an equity stake in the electric and fuel cell truck company or planning to build its now-kaput Badger pickup.

Yes, but: Nikola will still use GM tech for their planned semitrucks under the scaled-back deal, and some analysts still see an upside.

  • Business Insider reports that JPMorgan analysts see some potential for Nikola, which has hit a rough patch after a high-flying market debut in June.
  • "We think this is a positive outcome for Nikola over the medium to longer term, since the company can now focus on the core Class 8 truck initiative and avoid the distraction and capex associated with the Badger pickup," JPMorgan said in a note, per BI.
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