Nikola jumps 15% on report that GM could take a bigger stake
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Matthew Fox
Sep 30, 2020, 23:36 IST
Nikola founder Trevor Milton attends a news conference held to presents its new full-electric and hydrogen fuel-cell battery trucks in partnership with U.S. Nikola, at an event in Turin, Italy, December 3, 2019.REUTERS/Massimo Pinca
Nikola surged 15% on Wednesday after CNBC's Phil LeBeau said investors should not be surprised if General Motors takes a bigger stake in Nikola.
General Motors and Nikola earlier this month announced a partnership in which GM would take an 11% stake in the electric-vehicle startup.
But weeks of controversy surrounding Nikola and its founder, Trevor Milton, have led to intense scrutiny of the deal, which was expected to close on Wednesday.
In early September, GM and Nikola announced a $2 billion deal in which GM would take a 11% stake in Nikola in exchange for design, manufacturing, and production services for Nikola's Badger pickup truck.
That deal, which was expected to close on Wednesday, remains up in the air following weeks of controversy surrounding Nikola and its founder, Trevor Milton, thanks in part to a short-seller report from Hindenburg Research alleging that Milton and the company misled and deceived investors.
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