October 28, 2020

albertofrigo

Dating Can Do

If Nikola goes up in flames, GM may possibly only get singed, analysts say

Standard Motors’ pending partnership with electric car maker Nikola Corp. could final result in a dream team or a deal with the satan.

Possibly way, GM CEO Mary Barra is not backing down from it irrespective of rumblings on Wall Street that potentially GM failed at its owing diligence. 

Very last 7 days, Hindenburg Investigate published a 67-web site report accusing Nikola of becoming an “intricate fraud.” Nikola has disputed the assert.

Now the U.S. Securities and Exchange Commission and Department of Justice are inspecting the allegations versus Nikola, in accordance to media experiences. The information has crushed Nikola’s stock selling price and cast a shadow about its pending deal with GM. But GM leaders stand by their system and some auto industry specialists give the union their blessing, also.

“The most significant hazard proper now is the hazard of a large PR black eye for (GM CEO) Mary Barra and the business,” claimed Morningstar’s David Whiston. “Even even though there isn’t substantially financial chance suitable now due to the fact the deal is to begin with cashless for GM, it nonetheless appears to be seriously bad optics-intelligent should Nikola be charged with legal fraud or go bankrupt. But as a GM analyst, I’d relatively have that risk than GM really wastes billions of bucks shopping for Nikola stock.”