Nikola Corporation (NKLA) Share dropped 8% after speculations about its $2 billion deal with G.M

    ASTR Stock
    ASTR Stock

    Shares of electric vehicle start-up Nikola Corp.declined 8% in after-hours trading on Tuesday after company’s CEO Mark Russell unbale to provide assured to investors that the GM will not step back from the $2 billion deal with Nikola. Russell also confirmed that the discussions are ongoing on with the G.M if a deal is not finalized by December 3 either side can walk away.

    Russell also refused to make any comments about the ex-chairman, Milton who stepped down in September and own 85.6 million shares making Milton Nikola’s largest single shareholder.Russell said that the company will continue to reward our long-term focus shareholders.According to the Nikola, all those shares will be eligible to sell next week.

    Top 5 EV Tech Stocks to Buy for 2023

    The electric vehicle boom is accelerating – and fast. According a new report published by BloombergNEF, annual spending on passenger EVs hit $388 billion in 2022, up 53% from the year before. Like we said, the boom is accelerating – and the time to buy EV-related tech stocks is now. Get our free report, "Top 5 EV Tech Stocks to Buy for 2023".

    Click Here to Download the FREE Report.


    The Department of Justice and Securities and Exchange Commission started investigating allegations of fraud raised by short-seller Hindenburg in September and due to this Milton has to step down.

    Milton was accused by Hindenburg for making false statements about Nikola’s technology to grow the company and partner with other auto companies. The shocking report from Hindenburgwas released two days after the company announced a deal with GM that sent both companies’ shares soaring in September.

    The shareowners agreed to extend their lock-up until April 31, including 39.8 million shares held by a separate company own by Milton and controlled by Russell.

    Nikola shares jumped 17.3% on Tuesday and closed at $34.50 and continue going up since company went public on June 4 after a reverse merger with VectoIQ.


    Please enter your comment!
    Please enter your name here