Showing posts from November, 2020

Nikola: GM Deal Doesn't Add Value

  Nikola is still waiting on GM to finalize their strategic partnership. The company apparently needs GM's battery and fuel-cell technology to build superior second generation trucks. The stock is worth nearly $11 billion prior to an equity distribution to GM. Nikola has too much risk without a GM partnership and not enough proprietary technology with a deal to make the stock a buy here. Nikola  ( NKLA ) soared 15% on Wednesday following circulation of an  internal report  showing  General Motors  ( GM ) had finally signed the deal to work together. While a signed partnership from GM does solidify Nikola as a viable EV company, the deal doesn't make the stock a bargain. Contrary to my thinking, Nikola hasn't completely collapsed on the departure of founding CEO Trevor Milton, but my  investment thesis  remains negative with the stock up at $25. Read the full article on Seeking Alpha.  Disclosure: Long GM. Please review the disclaimer page for more details.