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silvrsvt

Nikola Motors accused of fraud

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Not sure I trust a short seller in this situation, but he says he has evidence so we’ll see.

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On 9/13/2020 at 5:35 AM, silvrsvt said:

 

The deal was very one-sided in favor of GM which added fuel to the fire that Nikola has nothing to offer. Basically GM got several hundred million dollars from Nikola to finish developing the pickup truck that Nikola had claimed to be working prototype (when it wasn't) with GM's Ultium battery system and fuel cell technology, from which GM will retain full IP ownership, setup an assembly line owned by GM to produce the truck for Nikola at cost-plus basis, and also has exclusive supply contract with future Nikola products. 

Edited by bzcat

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8 hours ago, bzcat said:

 

The deal was very one-sided in favor of GM which added fuel to the fire that Nikola has nothing to offer. Basically GM got several hundred million dollars from Nikola to finish developing the pickup truck that Nikola had claimed to be working prototype (when it wasn't) with GM's Ultium battery system and fuel cell technology, from which GM will retain full IP ownership, setup an assembly line owned by GM to produce the truck for Nikola at cost-plus basis, and also has exclusive supply contract with future Nikola products. 

It would be strange if Nikola ended up being another division of GM.

Edited by atomcat68

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20 hours ago, bzcat said:

Trevor Milton resigned as CEO and Chariman and also gave up his board seat today. This fraud investigation is just getting started... 

https://www.cnn.com/2020/09/21/investing/nikola-trevor-milton/index.html

 

 

You beat me to it... Notice how a former GM exec is in charge now and they have the deal pending with GM. I feel more strongly that GM will come in for the rescue and create another "Saturn" out of this company. A GM brand that at first is advertised as "a new car company."

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On 9/17/2020 at 10:05 PM, atomcat68 said:

It would be strange if Nikola ended up being another division of GM.

 

If anything, they will be absorbed and their tech will end up in GM vehicles.

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26 minutes ago, twintornados said:

 

If anything, they will be absorbed and their tech will end up in GM vehicles.

 

That's the thing... there is no tech at least that is the basis of the allegation from the short seller and SEC is now looking into it.

 

The GM deal also shed a lot of light on what is going on. It was very clear about the relationship between the two companies... GM is providing the fuel cell tech and battery system to Nikola, and will keep any IP that comes out of working with Nikola, in addition to building the vehicles for Nikola. In return, GM get a chunk of the company. Nikola brings to the deal nothing of substance other than its inflated valuation, and will rely on GM to design, engineer, and build its vehicles. 

Edited by bzcat

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2 hours ago, twintornados said:

 

If anything, they will be absorbed and their tech will end up in GM vehicles.


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We knew that GM would probably provide the batteries from their supplier so maybe Nikola has the skateboard platform, or supplier contracts. But the best thing GM can acquire is the investor equity they have from the dolts that wrote blank checks and are praying someone can save the day.

 

The only problem is the one saving the day is GM and that alone may make them shit their pants more than they are now.

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