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Discussion Starter #1
With all the recent news surrounding Nikola and the SEC investigating them about short selling, do we actually think this deal is going to go through? At this point I don't see it happening.
 

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@JimsH3 That's a good question, Jim...and something I've wondered for a while.

Personally, I have to believe that the main reason GM made this deal was because they saw the fallout with Milton coming in fast, and they saw an opportunity to cash in on the next hot EV startup. Think about it, they have up virtually nothing up front...got an 11% stake in Nikola...get the EV credits from Nikola...and will get hundreds of millions, if not billions, in development payments for Nikola vehicles, assuming they stay afloat. But they have lost nothing thus far.

I honestly think that GM knew about this report, and saw the chance to get a major stake in Nikola up front for free, and then later, to expand to near-majority or majority ownership. And now a former GM exec heads the company, too. I think the Badger is DOA, and was likely never reaching production. What GM likely wanted all along was the Class 7/8 hydrogen semi...that was the goal. Hydrogen-electric tech is the best clean diesel alternative by a long shot, and if GM can develop the semi and even lower-class vehicles, I could easily see them turning the Nikola brand into their hydro-electric commercial vehicle subsidiary brand. As for the current climate at Nikola, GM loses nothing but time. This is all just me speculating!
 

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A couple thoughts on the NKLA deal. If GM walks away from it the stock will tank and GM could pick up the whole company for cheap. Nikola is in a tough position because they can't refute the Hindenburg report and calling in the SEC is like a drug dealer calling the police because someone stole his stash.
 

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Discussion Starter #4
A couple thoughts on the NKLA deal. If GM walks away from it the stock will tank and GM could pick up the whole company for cheap. Nikola is in a tough position because they can't refute the Hindenburg report and calling in the SEC is like a drug dealer calling the police because someone stole his stash.
At this point it seems to me that GM is going to get Nikola for pennies on the dollar, gut them and use whatever they can on their own EVs and not bother building the Badger.
 

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Discussion Starter #5
Donut Media did a great job going through the full story between Nikola and GM.

 
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