All discussion of Nikola Motors

[lascavarian]

Cramer on CNBC just mentioned that his evening program is going to have a guest from Nikola (not the guy with 2 first names).

 

[llirk]

CNBC's coverage of Tesla... doh!!!

1) there is an EV wave and since Tesla is an TV stock, it's going up. Look at NIO. TSLA obviously caught up in that.
2) Elon Musk is now the world's 2nd richest man, wooo look at that.
3) does it make you nervous? it's so high...

While completely silent on:
1) S&P500 inclusion means it is nothing more than a stable, massive company
2) they make the actual best BEVs in the market and their rate of innovation looks to be the best also
3) they are doubling the number of factories they've got. what does that mean for the future?
4) we are headed for a world with BEVs and no ICE. Tesla is at the vanguard.
5) between now and December 21st a whole boatload of fund managers are OBLIGED TO BUY TSLA and savvy stockholders know this - which is why there are few sellers.

The only conclusion is that this is deliberate.

My money is on December 20th CNBC coverage all of a sudden: "watch out for TSLA to fall off a cliff as investors start to sell, now that the S&P500 buying period is over"

But they did mention having Nikola CEO on Mad Money tonight, so there's that

Will be good for some Tesla "pin action" but could also represent "jumping the shark" for Nikola.

Win Win!

 

[SageBrush]

Other People's Money
Nikola is a renevue stream to existing suppliers for an unknown length of time, but dough is dough and visibility helps the supplier's sales.

I'm not following. Are you talking about e.g a chassis maker ? How does it matter to them if the order is from 'GM' or from 'Nikola' ?

 

[mongo]

I'm not following. Are you talking about e.g a chassis maker ? How does it matter to them if the order is from 'GM' or from 'Nikola' ?

That doesn't directly, but GM's earnings take a hit if they buy it, (disincentive) whereas Nikola's IPO funds their purchases and are sort of a requirement for use of the money. So Nikola existing increases the changes of the suppliers getting sales/ quantity of sales.

 

[SageBrush]

That doesn't directly, but GM's earnings take a hit if they buy it, (disincentive) whereas Nikola's IPO funds their purchases and are sort of a requirement for use of the money. So Nikola existing increases the changes of the suppliers getting sales/ quantity of sales.

That made sense to me for a moment.

GM does not buy Nikola
GM gets paid by Nikola to build truck, and spends some of the proceeds on chassis

GM buys Nikola
GM gets Nikola assets (including IPO cash), and spends some of it to buy chassis

If this is the underlying 'business' logic then it is not the suppliers getting more business, it is GM attaching IPO assets to their balance sheet. Fair enough, since it amounts to GM shielding Nikola assets from creditors and shareholders. Yeah ... that sounds like GM to me. CPAs will have to decide if the negative goodwill and legal fees are less than the assets.

Thanks for the insight. As if I needed any more reason to despise GM. My reasoning however implies that NKLA stock value should rationally tank to zilch. Is that correct, or is GM paying for NKLA with GM stock ?

 

[mongo]

That made sense to me for a moment.

GM does not buy Nikola
GM gets paid by Nikola to build truck, and spends some of the proceeds on chassis

GM buys Nikola
GM gets Nikola assets (including IPO cash), and spends some of it to buy chassis

If this is the underlying 'business' logic then it is not the suppliers getting more business, it is GM attaching IPO assets to their balance sheet. Fair enough, since it amounts to GM shielding Nikola assets from creditors and shareholders. Yeah ... that sounds like GM to me. CPAs will have to decide if the negative goodwill and legal fees are less than the assets.

Thanks for the insight. As if I needed any more reason to despise GM. My reasoning however implies that NKLA stock value should rationally tank to zilch. Is that correct, or is GM paying for NKLA with GM stock ?

To be honest, you're putting more thought into it than I did. They only things I see Nikola providing is some engineering talent and some $$$ (and a tax credit reset)
If GM purchased then, it seems like it would need to overpay versus assets (and potentially nix the tax credits)

 

[ZsoZso]

Just in case anyone here is thinking about buying puts on NKLA, due to the upcoming share lockup holding period ending: don't do that. They have extended the lockup period. Sigh. It's going to go up 10% now, isn't it? I really hate that company.

"In November, 2020, members of our board of directors, executive officers, their affiliates and certain entities associated with those individuals voluntarily agreed to extend the lock-up provision on an aggregate of approximately 136,500,000 shares of our common stock, including vested stock options and warrants, through April 30, 2021."

You should watch the video posted by @JRP3 above yours. The extension is for less than half the insider shares only!
There are 160+million shares that will go on sale, basically all of Trevor Milton's plus a few other's who did not agree to the extension.

 

[MP3Mike]

Now up over 20%... I can't for the life of me discern who is buying lol. Mods, I know this is not tsla related, sorry, you can delete this if necessary.

I'm sure that Trevor will really appreciate that in just over a week when he can start selling shares.

 

[SageBrush]

I'm sure that Trevor will really appreciate that in just over a week when he can start selling shares.

I ***so*** much feel like shorting NKLA again or buying PUTS, but I'm too ignorant of 'financial engineering' to jump in on a short time scale

Pity, because I have zero doubt that NKLA is a scam and GM are floundering, yesterday's news.

 

[Curt Renz]

CNBC Article - hour ago: JPMorgan 'skeptical' about GM producing Nikola badger pickup

 

[ammulder]

I guess this is the right place:

Nikola Signs MOU with General Motors

Stick a fork in it, the Badger is dead.

 

[H Mak]

And no equity stake in Nikola from GM. This will go down like a lead balloon.

 

[Mengy]

I can't say this is surprising, given how shady Nikola is as a company. I couldn't see a chance where GM would follow through with the deal as originally proposed, it would just be too risky and caustic. This "new deal" sounds like a much safer play for GM, but yeah it's terrible news for any fans of Nikola and certainly for any NKLA shareholders. Luckily I am not one of them!

 

[Needsdecaf]

In news that surprised absolutely no one....

 

[Doggydogworld]

And no equity stake in Nikola from GM. This will go down like a lead balloon.

Nothing about Ultium, either. And no definitive agreement, just another MOU. GM will provide fuel cells if NKLA ever actually builds a truck. Just like Nel ASA will provide electrolyzers if NKLA ever builds 900 or whatever fueling stations.

In news that surprised absolutely no one....

It surprises me. Trevor's exit is the only thing that changed at NKLA since the original MOU. And that was clearly addition by subtraction.

Unless GM was really counting on Trevor's hype. Seems unlikely on multiple levels, but these are strange times.

 

[vikings123]

I guess this is the right place:

Nikola Signs MOU with General Motors

Stick a fork in it, the Badger is dead.

The timing of this is brilliant. Trevor can start dumping his shares tomorrow Dec 1st but they will be worth at least 20% less. Coincidence? I think not.

 

[JRP3]

I just watched the CEO on yahoo, Nikola doesn't even build their own battery modules. The cells come from Korea, another company puts them into modules, and Nikola assembles the modules into their "proprietary" pack

 

[bkp_duke]

down 20% . . . and counting

 

[Chunky Jr.]

Nikola doesn't even build their own battery modules. The cells come from Korea, another company puts them into modules, and Nikola assembles the modules into their "proprietary" pack

Bob : "What would you say you do here?"

 

[MP3Mike]

Stick a fork in it, the Badger is dead.

But I thought they had lots of OEMs that wanted to help them make the Badger... They are just giving up after GM came to their senses?