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GM Webpage Confusion Keeps Nikola's Stock On Wild Ride

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GM Webpage Confusion Keeps Nikola's Stock On Wild Ride

Back on Sept. 8, General Motors Company (NYSE: GM) announced a deal with Nikola Corporation (NASDAQ: NKLA) that would allow Nikola to use GM's batteries, while Nikola would give GM $2 billion in common stock.

After a damning report by Hindenburg Research that made Nikola look as if it had been lying about its progress, it seemed the deal with GM may not proceed as planned.

Earlier Wednesday morning, a page on GM's website stirred up rumors that the partnership isn't dead, leading to a spike in Nikola's stock price. The "Making Our All-Electric Vision a Reality" page on GM's website specifically mentions Nikola. Nikola is mentioned four times on the page in reference to a potential partnership.

However, a GM spokesperson tells Benzinga the deal with Nikola "has not closed," and the page on GM's investor relations site has been live since Sept. 8. They also said GM is "still in discussions with Nikola."

It seems traders have circulated the webpage as if it's new information. The deal may also be getting attention because of GM's participation at the Barclays 2020 Global Automotive Conference on Thursday.

Nikola's stock traded up 14.4% to $25.21 at publication time.

Photo courtesy of GM.

 

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