Nikola has received allegations of fraud about the six-year-old startup’s technology and Trevor Milton, the founder. Last week, Milton left his post as executive chairman for the hydrogen-fueled trucks firm. For now, Nikola and GM postponed their supposed deal. But Nikola executives assured that the negotiations remain, and plans for semi-truck productions are on track.
GM and Nikola Deal Still in Progress
With the delayed pursuance of the $2 billion deal with GM, Nikola executives assured investors that the production remains on track. Meanwhile, the chief executive of Nikola, Mark Russell, noted that the talks between the two companies continue. However, he did not mention further details. “When we have something to tell you, that we will,” Russel said.
— Forbes (@Forbes) September 30, 2020
Meanwhile, a GM spokesperson echoed Nikola executives regarding the supposed deal. “Our transaction with Nikola has not closed,” the spokeswoman said. She added that GM continues discussing with the current management of Nikola.
Allegations vs. Nikola
Earlier in September, GM and Nikola said that they intend to work together. With the new agreement, GM will gain an 11 percent stake in Nikola. In return, GM will exclusively supply fuel cells for Nikola’s semi-trucks.
According to Forbes, Nikola also worked with a handful of companies aside from GM. Among them, it includes Bosch and CNH Industrial/IVECO. Moreover, it also had negotiations with energy companies like BP but postponed after fraud accusations.
Particularly, Nikola became the receiving end of fraud allegations in a financial research company report. The Hindenburg Research accused Nikola of buying vehicle components and technology from other companies and then claiming it as their own.
According to the analyst of the research firm, “We have never seen this level of deception at a public company, especially of this size.”
Plans Will Still Continue
Nikola also assured that semi-truck production continues, according to a CNBC report. The company announced that it plans to test its electric semi-truck by the end of this year. Moreover, production will supposedly begin in the last quarter of 2021. Meanwhile, Nikola expects its Arizona plant to start manufacturing in 2022. Also, Nikola looks for another company to work with regarding the hydrogen fuel cell stations, the report said.