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All discussion of Nikola Motors
- Thread starter Buckminster
- Start date
Then there was Tino De Angelis and the 'salad oil scandal'. That happened when I was in commercial credit training in NYC. A colleague had a project to assess the credit of a New Jersey dealer in salad oil, who had financed more salad oil than existed in the world at the time. regular audits found the oil, which was a thin film on the top of each tank. I have numerous cases, including NYC fraudulent property developers. Many of those were allowed to escape largely unscathed because the consequences of disclosing the reality were deemed to be worse than the losses.My then employer boycotted one fo those who ended out with Deutsche Bank as the only lender. There is a pretty good book about Deutsche Bank near-failure that tells the story.
https://www.amazon.com/Dark-Towers-Deutsche-Donald-Destruction-ebook/dp/B07NLFHHJ3
Nikola is not the first one either. Delorean, GM Mortgage, countless Floor Plan scams. Fraud has been a regular feature fo the auto business.
@AudubonB is referring to a few decades in which I was mostly dealing with bad loans, diagnosis, recovery and workouts. Quite a lot of that was devoted to auto industry and real property scams. Many times the perpetrators largely get away because the financiers don't want to publicly reveal their culpability.
All those experiences makes me do probably excessive due diligence when I invest. Tesla always pleases me with the industry most conservative accounting policies, most evident in the income recognition category in which no other OEM has ever been so conservative IMHO.
I will wager not before 2021, if then. In the end, between Bosch, GM, FCA et al, they'll probably end out producing and selling vehicles of some type. I hope that is incorrect but history suggests otherwise.
SageBrush
REJECT Fascism
Your breadth of experience and knowledge is astonishing.
Thank you for posting, each one is a treat.
Knightshade
Well-Known Member
How so?
Everything they do for NIkola is cost plus.
GM makes a profit on literally any effort or energy costs they expend in this deal.
Depends on how the contract is written. If GM got 11% of the company for providing $2B worth of services, and the company value has dropped in half they may still have to provide $2B of services, but they only have $1B worth of stock to cover the costs. (And it can drop even further.) Hard to make a profit when you are selling your services at a 50% discount.
Knightshade
Well-Known Member
My understanding is there's another 700 million in actual money in the contract for PRODUCTS from GM... and that all expenses and costs are on a cost-plus basis with a guaranteed profit on every line item for GM.
The 2 billion in stock just got Nikola services in kind and " access" to General Motors’ global safety-tested and validated parts and components.
Which reads to me as a bribe to agree to any deal at all.
Knightshade
Well-Known Member
A company the size of GM has a significant legal staff already.
They don't need to hire a bunch more to look over a joke of a contract like this where they're getting 99.9% of the benefit.
(and given the nature of the contract, if they DID have to, I guarantee there'd be a clause in there that Nikola would pay the bill)
chiller
Member
I went through the battery day slides, and noticed something that was missing, so I fixed it. This is very bullish as it puts Nikola at #2.
Today September 26, 2020 I just checked Nikola's website. The $250 and $1000 reservations that include tickets to Nikola World 2020 are "sold out", but the $5000 "Honey Package" reservations that include backstage tickets for Nikola World 2020 and also a truck "Signed by Founder" are available. Seems a bit pricey, but I hate to miss out. What do to?
(There's no $10,000 "Bridge Package".)
(There's no $10,000 "Bridge Package".)
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CyberGus
Not Just a Member
I'm betting that "Nikola World 2020" will be slightly less awful than the Fyre Festival
Nikola is 'a broken stock' and could lose another 75%, one strategist says | Markets Insider
"Steve Kalayjian, chief strategist and co-founder of trading platform Ticker Tocker told Business Insider: "Looking at Nikola's stock chart. It's a broken stock. I would avoid it. It could possibly go to $5, it's really hard to tell where it goes from here."
"There is nothing from a technical view to support it," Kalayjian added.
"Steve Kalayjian, chief strategist and co-founder of trading platform Ticker Tocker told Business Insider: "Looking at Nikola's stock chart. It's a broken stock. I would avoid it. It could possibly go to $5, it's really hard to tell where it goes from here."
"There is nothing from a technical view to support it," Kalayjian added.
Time for a time check:
From a variety of news stories, it appears that 30 September is the date for GM to make final its go/no go regarding consummating the Nikola deal. That’s not until the end of the month.
That is....this upcoming Wednesday. Wow.
From a variety of news stories, it appears that 30 September is the date for GM to make final its go/no go regarding consummating the Nikola deal. That’s not until the end of the month.
That is....this upcoming Wednesday. Wow.
Here is update to SEC:
https://sec.report/Document/0001104659-20-102820/
So no, they think that closure will happen then (or before) but, actual end date is dec 3 (Like I have said many time this very thread)
"The Subscription Agreement contains customary conditions to closing of the Investment (the “Closing”), including receipt of all approvals or the termination or expiration of all waiting periods required under applicable antitrust laws. The Company currently anticipates that the Closing will occur prior to September 30, 2020. The Subscription Agreement may be terminated by either the Company or GM Holdings if the Closing has not occurred by December 3, 2020."
https://sec.report/Document/0001104659-20-102820/
So no, they think that closure will happen then (or before) but, actual end date is dec 3 (Like I have said many time this very thread)
"The Subscription Agreement contains customary conditions to closing of the Investment (the “Closing”), including receipt of all approvals or the termination or expiration of all waiting periods required under applicable antitrust laws. The Company currently anticipates that the Closing will occur prior to September 30, 2020. The Subscription Agreement may be terminated by either the Company or GM Holdings if the Closing has not occurred by December 3, 2020."
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Thank you for the clarification.
It also clarifies that whoever wrote - and whoever proofed - the document doesn’t know the difference between “anticipates” and “expects”. Of course, that’s not the first example of Nikola being sloppy with wording, is it?
It also clarifies that whoever wrote - and whoever proofed - the document doesn’t know the difference between “anticipates” and “expects”. Of course, that’s not the first example of Nikola being sloppy with wording, is it?
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