Advertisement
UK markets closed
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     
  • HANG SENG

    16,541.42
    +148.58 (+0.91%)
     
  • CRUDE OIL

    83.13
    +1.78 (+2.19%)
     
  • GOLD FUTURES

    2,239.80
    +27.10 (+1.22%)
     
  • DOW

    39,763.22
    +3.14 (+0.01%)
     
  • Bitcoin GBP

    56,078.93
    +1,681.43 (+3.09%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • NASDAQ Composite

    16,366.64
    -32.88 (-0.20%)
     
  • UK FTSE All Share

    4,338.05
    +12.12 (+0.28%)
     

Nikola, GM Deal Bound to Happen, Some Way, Somehow: JPMorgan

By Christiana Sciaudone

Investing.com -- Nikola's up almost 7% after JPMorgan (NYSE:JPM) said the General Motors (NYSE:GM) deal could still happen -- though on different terms. The analyst reiterated its buy-equivalent rating and price target of $441.

"We believe Nikola and General Motors are still likely to enter into a strategic partnership by Dec. 3," said analyst Paul Coster, according to StreetInsider.

Shares are down some 69% since an all-time high in June after the company was accused of fraud, including portraying vehicles as mobile when they were not.

"We think a more probable scenario is that the deal closes with the original terms, or it is re-engineered for a narrower scope that eliminates or down-sizes the Badger initiative (this seems like a net negative for GM, so they might seek more equity in return for the concession)."

ADVERTISEMENT

Walking away from the deal completely seems unsatisfactory for both parties, Coster said. Nikola needs access to GM's supply chain, engineering resources and more to remove risks. GM, on the other hand, needs to realize a return on billions of dollars of investment in hydrogen fuel cells.

Related Articles

Social bond issuance soars on back of coronavirus crisis

Victoria's Secret Parent Rises as Bath & Body Works Spin-off Nears

Tesla to export China-made Model 3 vehicles to Europe