All discussion of Nikola Motors

[ZsoZso]

I'd like to point out the honesty and integrity of Phil Lebeau as he admits he was wrong about this GM deal, that GM did their due diligence and still going forward with the deal despite the infamous report of the short-seller, just as reminder of those videos.

So Now Phil admits he was wrong and he is shocked and surprised of this total and utter cancellation of the original giant deal and replacement with a nothing-burger, empty-deal:

 

[Cal1]

Still can't see any reason GM would want any part of Nikola. The bad press will live on long after this week and I can't see GM ever branding anything with a Nikola engineered badge. Maybe GM was hoping to make $ off the deal and didn't think they would lose much with the publicly trashed company.

 

[Knightshade]

Still can't see any reason GM would want any part of Nikola.

They want the money part.

if NKLA wants to fund GM building some fuel cells nobody else wants anyway, why not take the cash?

Mind you, I'd be asking for payment up front if I were GM.

 

[Doggydogworld]

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?

Dozens of R&D dollars, down the drain.....

 

[SageBrush]

When does Trevor start dumping his shares ?
I want to have the popcorn ready.

---
I anticipated NKLA BK and lawsuits in short order not too long ago, and I don't think the company has fallen apart as fast as I guessed. How many more weeks to go ?

 

[SageBrush]

I'd like to point out the honesty and integrity of Phil Lebeau as he admits he was wrong about this GM deal, that GM did their due diligence and still going forward with the deal despite the infamous report of the short-seller, just as reminder of those videos.

So Now Phil admits he was wrong and he is shocked and surprised of this total and utter cancellation of the original giant deal and replacement with a nothing-burger, empty-deal:

As an aside, I cannot help but laugh that GM stock dropped with the announcement that GM is running away from NKLA. That is the first smart move GM has made in ages, and stockholders sell.

 

[SageBrush]

Cross my heart, I did not make this up ...

Nikola's 25% dive is a good buying opportunity because the company's decision to abandon the Badger pickup means it can focus more on semi trucks, JPMorgan says

I should post this over at $TSLAQ as a PSA. I know they are always looking for Tesla killers

 

[BluestarE3]

Still can't see any reason GM would want any part of Nikola. The bad press will live on long after this week and I can't see GM ever branding anything with a Nikola engineered badge. Maybe GM was hoping to make $ off the deal and didn't think they would lose much with the publicly trashed company.

For GM, it's a face-saving move. If they had gone through with the original deal or if they had simply canceled the whole thing, it would have been embarrassing to GM for not properly vetting the company in the first place. This way, they can say that yeah, they're interested in doing business with Nikola, but only as a parts supplier through a run-of-the-mill MOU arrangement.

For Nikola, this renegotiated arrangement allows them to claim that they have successfully consummated the GM deal, even if in the end it's a hollow one.

 

[SageBrush]

it would have been embarrassing to GM for not properly vetting the company in the first place. T

In what world is that still not true ?

It is a truism that scammers prey on the vulnerable and greedy. The shoe fits, GM

 

[BluestarE3]

They want the money part.

if NKLA wants to fund GM building some fuel cells nobody else wants anyway, why not take the cash?

Mind you, I'd be asking for payment up front if I were GM.

According to this NY Times article, that's exactly what GM is demanding:

The deal the companies announced on Monday was described as “a nonbinding memorandum of understanding.” G.M. also said that Nikola would have to “pay upfront” for it to expand capacity to produce hydrogen fuel cells.

 

[SageBrush]

According to this NY Times article, that's exactly what GM is demanding:

OK, let's try this out:

Nikola Motors has about $1B in their piggy bank if their unaudited Q3 report is to believed. That has to be enough to:
1. Build a fuel cell factory, and pay GM for the parts
2. Build an H2 fueling infrastructure
3. Pay for trucks
4. Pay for the R&D to turn fuel cell + truck into something that can go uphill
5. Then live off a gutted company without employees until someone buys a truck

GM refuses to build a single DCFC let along a hydrogen highway, and has the internal expertise to build a fuel cell drivetrain but has refused to do so despite receiving a mountain of gov money and having access to capital markets ... but Nikola Motors is going to do it all ... with at most $1B (before litigation costs.)

This entire story is so outrageously BS, I find it hard to believe that anyone could swallow it.

 

[BluestarE3]

GM refuses to build a single DCFC let along a hydrogen highway, and has the internal expertise to build a fuel cell drivetrain but has refused to do so despite receiving a mountain of gov money and having access to capital markets ... but Nikola Motors is going to do it all

GM says they have "Over 50 years experience in fuel cell technology", but they have yet to introduce a mass production vehicle that employs this technology. Somehow, Nikola was going to come to market with game-changing fuel cell tech in 1/10 that time. Anyway, Nikola and Hydrotec deserve each other.

By the way, the GM Hydrotec site still proudly displays the GM/Nikola Badger announcement from September in their "In the News" section.

 

[ZsoZso]

What is most telling is the fact that there is no talk about any details from this New Deal, such as

1. Price / cost
2. Time-frames
3. Number of units / volume

So it is not even a parts supply deal, only an agreement that they will make a parts supply deal sometime in the future -- IFF the companies survive and have the money / capability still

 

[SageBrush]

GM says they have "Over 50 years experience in fuel cell technology", but they have yet to introduce a production vehicle that employs this technology.

I almost never have anything positive to say about GM, but oddly enough I accept that GM could build a hydrogen fuel cell truck. The fuel cell does not even have to be internal R&D -- they can be sourced from Ballard, e.g.

After that, it becomes a matter of adding hydrogen storage tanks and integrating the fuel stack into an electric hybrid. It would be the equivalent of a scaled up Volt, with the ICE swapped out for the fuel cell.

So why hasn't it happened ? Well, there are the market problems of
1. No refueling infrastructure
2. Fuel cell cost
3. Fuel cell reliability
4. Hydrogen cost

To quote Elon, it is a fool cell. It can be built but there is no business case.

 

[SageBrush]

What is most telling is the fact that there is no talk about any details from this New Deal, such as

1. Price / cost
2. Time-frames
3. Number of units / volume

So it is not even a parts supply deal, only an agreement that they will make a parts supply deal sometime in the future -- IFF the companies survive and have the money / capability still

Do you remember a childhood game where a child is given a scrap of paper that 'turn over !' is written on both sides ?

I keep imagining an MOU that says 'MOU' inside

 

[OrthoSurg]

Who is buying puts following this new?
They are up 100%

 

[Knightshade]

When does Trevor start dumping his shares ?
I want to have the popcorn ready.

IIRC someone on the interwebs suggested they released the MOU early this morning specifically because Trevor was going to be able to dump has shares and they figured the dip from this news might slow him down.

I dunno enough about how fraud companies work to know how much sense that makes though.

 

[SageBrush]

Who is buying puts following this new?
They are up 100%

If the price is right ...

But that aside, why does it surprise you ? Isn't a PUT purchase a speculation that the stock price will drop ?

 

[OrthoSurg]

If the price is right ...

But that aside, why does it surprise you ? Isn't a PUT purchase a speculation that the stock price will drop ?

It does not surprise me.
However , 2 months ago I wanted to start selling puts on NKLA and someone said he was discouraging me to do it as the cost of the contracts were too high

 

[lafrisbee]

TSLA up 5%

NKLA down 15%

Finally, a little sense in this world.

Is that 15% all from Trevor selling?