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Technology Stocks : Nikola Corp
NKLA 0.184+1,542.9%Feb 25 3:59 PM EST
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To: JubilationT who wrote (120)9/17/2020 2:41:11 PM
From: kidl  Read Replies (1) of 252
 
Isn’t it possible that most of this DD was on the financial side as it's pretty clear by now that Nikola's technical contribution is very limited to say the least?

Also from the article:

Limited downside

Early conversations between GM and Nikola, which began in late February before Girksy had announced the reverse merger, were preliminary and didn’t result in a deal. But Nikola’s effort to find a partner to build the Badger added momentum to consideration of a possible partnership. Milton said in June that he was talking to multiple autoakers about outsourcing production of the pickup.

Meanwhile, GM moved ahead with its own electrification plans, showing off the Ultium battery in March and boasting it would power a family of vehicles ranging in size and purpose from small crossovers to big Hummer and Chevrolet trucks. GM has begun retooling a plant in Detroit to make the battery packs and common “skateboard” chassis.

For GM, assembling the Badger would help it max out its factories and scale up its electric-vehicle supply chain more quickly. And a fuel-cell partnership would give GM a way to generate revenue from a technology it had co-developed with Honda Motor Co. but had no firm plan for deploying in vehicles.

GM moved ahead after concluding there was no financial downside to a deal. The automaker gets licensing fees for its technology and for building the Badger -- and reimbursement for any up-front costs. The free equity in Nikola is an added sweetener that the automaker hopes won’t turn sour.

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