Shares of electric-truck start-up Nicola (Nasdaq: NKLA) Closed more than 25% on Wednesday, following reports of energy surges B.P. (NYSE: BP) Nicola has withdrawn from the potential partnership following allegations that it misled investors.
Nicola’s stock then plummeted Wall Street Journal The short seller’s report reports that the company’s negotiations with several potential partners, including BP, have stalled after the truck manufacturer’s Technol.G claims were called into question.
The US Securities and Exchange Commission is also investigating the allegations.
Nikola is looking for a partner to help build a network of hydrogen refueling stations, a key component of its business plan for electric heavy trucks powered by hydrogen fuel cells.
Did Nicola mislead investors? The company denied the allegations, saying its original prototype, the Nicola One Semi, was not advancing. Image Source: Nicola.
Included in the Nikola rental lease costs – through a network of stations owned by Nicola – plans to lease trucks to commercial-fleet operators on a 7-year or 700,000-mile lease with maintenance and refueling.
There was a deal in principle between Nicola and BP and a few days away from an announcement when the short seller, Hindenburg Research, published its report on September 10, according to a Bloomberg Report.
The deal with BP would have been announced just days after the announcement of a separate deal with Nicola General Motors (NYSE: GM)Is, in which both companies will collaborate on electric pickup trucks. Nicola also agreed to buy a battery pack and fuel cell from GM.
Near Wednesday, Nicola’s stock had lost half its value since the Hindonburg report was published. While GMA has said it is dealing with its deal with Nikola, the report already has other formalities: Nicola’s outspoken founder, Trevor Milton, left the company early Monday and deleted his widely followed Twitter account.
