Nikola Stock Falls 14 Percent After CEO Downplays Badger Truck Plans (arstechnica.com) 20
An anonymous reader quotes a report from Ars Technica: Nikola CEO Mark Russell downplayed the company's Badger pickup truck in comments to the Financial Times on Thursday. "The Badger was an interesting and exciting project to some shareholders, but our institutional shareholders are mostly focused on the business plan," Russell said. "Our core business plan since before we became publicly listed always focused on heavy trucks and hydrogen infrastructure." Russell's comments were published after markets closed on Thursday. Nikola's stock price plunged on Friday morning and is currently down about 14 percent for the day.
Negotiations with General Motors to design and build the truck have dragged on weeks longer than expected. Nikola and GM announced a wide-ranging partnership on September 8. It envisioned GM not only building the Badger but also supplying the batteries and fuel cells that power the trucks. Under the deal, GM would also supply hydrogen fuel-cell technology for Nikola's semi trucks outside the European market. Nikola was supposed to give GM $2 billion worth of stock to license GM's technology, reimburse GM to build out a Badger factory, and then pay GM on a cost-plus basis to assemble the Badger. The value of Nikola's stock soared immediately after the September 8 announcement, but it then tanked after a short-selling firm revealed that Nikola CEO Trevor Milton had lied when he said Nikola's first truck, the Nikola One, was fully functional. Nikola has admitted that a promotional video showed the truck rolling down a hill, not traveling under its own power. The price decline has made GM's expected $2 billion stake in Nikola worth much less.
Negotiations with General Motors to design and build the truck have dragged on weeks longer than expected. Nikola and GM announced a wide-ranging partnership on September 8. It envisioned GM not only building the Badger but also supplying the batteries and fuel cells that power the trucks. Under the deal, GM would also supply hydrogen fuel-cell technology for Nikola's semi trucks outside the European market. Nikola was supposed to give GM $2 billion worth of stock to license GM's technology, reimburse GM to build out a Badger factory, and then pay GM on a cost-plus basis to assemble the Badger. The value of Nikola's stock soared immediately after the September 8 announcement, but it then tanked after a short-selling firm revealed that Nikola CEO Trevor Milton had lied when he said Nikola's first truck, the Nikola One, was fully functional. Nikola has admitted that a promotional video showed the truck rolling down a hill, not traveling under its own power. The price decline has made GM's expected $2 billion stake in Nikola worth much less.
New post-badger plans . . . (Score:2)
King Arthur: What happens now?
Sir Bedevere: Well, now, uh, Launcelot, Galahad, and I, uh, wait until nightfall, and then leap out of the badger, taking the French, uh, by surprise. Not only by surprise, but totally unarmed!
Arthur: Who leaps out?
Bedevere: U-- u-- uh, Launcelot, Galahad, and I. Uh, leap out of the badger, uh, and uh...
Arthur: Ohh... (he and Lancelot slowly put their hands to their heads at the realization that they messed up)
Bedevere: Oh. Um, l-- look, i-- i-- if we built this large wood
Re: (Score:2)
Sir Launce of the Sand, also known as Launcelot, was a famous Knight of Clamming, expert at sacking sandcastles and soiling beach towels.
Re:The Scam is Unravelling (Score:5, Informative)
The amazing thing is that there's still people buying it at a $8-9B valuation.
The most "impressive" thing that "they've" done is largely contract out the construction of two actually "drivable" prototypes. Drivable in quotes because they appear to only be workable at low speeds, are incredibly loud even when stopped, have dramatically less power and range than claimed, and according to a recent statement from Nikola, are ~18 tonnes each.
Nikola's big stakeholders just need to hold through early December for their lockups to expire.
Re: (Score:3)
The amazing thing is that there's still people buying it at a $8-9B valuation.
Not really. I guess you don't remember the whole SCO thing of over a decade ago where their stock kept a $4-5 per share valuation for years on nothing but the long shot hope that they would prevail in their lawsuit against IBM and get rich off of it. There was no shortage of buyers for that stock for years. Even doing the dreaded "reverse split", which should have been a sign to any rational investor to get out, failed to dampen some people's enthusiasm for the stock. There's a lot of money in the st
Re: (Score:2)
I'm not surprised people are still buying it.
SAFE-T GROUP LTD (SFET) is a software and computer security company whose stock used to be worth over $100, but they did some stock splits that were harmful to investors and the market decided the company wasn't trustworthy enough to be investable, so the stock dropped to about $1. But people still buy and sell it.
Am I the only one (Score:3, Informative)
Like Tesla is popular, I'm gonna make a car company to ride their popularity using the first name of the same person...
Seems like an obvious cash grab by chasing what's popular.
Re: (Score:3)
Re: Am I the only one (Score:2)
Re: (Score:2)
I don't know what's worse, people investing in companies with no path to profitability (Uber, We Work) but actually do something, or people investing into obvious fake shit.
Re: Am I the only one (Score:1)
Re: (Score:2)
It is just a stock symbol, that is why.
If you're making a short-term investment you might not mind that the company is bullshit.
Re: Am I the only one (Score:2)
The rich have run out of legitimate investments.
They need we lowly mortals to have more to spend so they can invest in things to make us and take out money back.
I'm not saying a huge ding to the wealthy is needed, but enough of one that they don't throw billions at complete bullshit (WeWork, Nikola, etc.).
What kind of partnership? (Score:2)
I think that they have most the know how and machinery necessary to build electric trucks. Not in the sense that theu could make a bus without passenger seats and bigger doors, but as a structure to put a cointainer
just want to say (Score:1)
I told you so.
I've mentioned in a few previous threads about this being complete nonsense, and been roundly excoriated by fanbois.
Kiss my ass, bitches.