Mike Wayland at CNBC brings us some truly shocking news:
JPMorgan is “skeptical” about Nikola finalizing a deal with General Motors to produce an electric pickup truck called the Badger for the embattled vehicle start-up.CNBC
Gee, I wonder what could have happened to give them doubts about the Badger. Maybe they saw Nikola’s CEO on Mad Money.
Instead, JPM analyst Paul Coster expects the two companies to renegotiate a previously announced $2 billion deal without the Badger, focusing on GM supplying Nikola with battery and fuel cell technologies for its large commercial trucks – the cornerstone of its operations.
″(Nikola’s) CEO has been consistently non-committal regarding the Badger initiative, in our view, and we are skeptical that it will proceed given that it is not a strategic initiative for Nikola and it could drain the company of cash needed for the Class 8 truck initiatives,” Coster said in an investor note Wednesday.CNBC
So Nikola took deposits for a fake truck that it would never be able to make. Nice!
A GM spokesman declined to comment on the negotiations Wednesday other than the “transaction has not closed, and there is no new information” to report.
Coster said JPM has a “sense that both GM and Nikola have reason to renegotiate the deal; Nikola may want to drop the Badger partnership, GM may want more stock to compensate for the diminished scope.” If not finalized by Dec. 3, either side can walkway form the pact.CNBC
It kind of sounds like GM wants to run for the hills as soon as they’re legally able to. Pop some popcorn on December 3rd.