Nikola Motor Company
Source: Nikola Motor Company
Nikola Shares fell more than 7% on Tuesday after CNBC renewed sexual abuse allegations against founder Trevor Milton and General Motors said it is still in talks over a $ 2 billion deal with the electric truck maker that is expected to close on Wednesday.
Two women have now been charged The 38-year-old billionaire filed sexual abuse complaints with Utah authorities when both women were 15 years old. The allegations, which go back more than 15 years, follow Milton’s resignation as Executive Chairman of Nikola on September 21 After the short seller Hindenburg Research published a damn report detailing allegations of fraud.
GM announced a deal with Nikola on Sept. 8 to add technology to its electric pickups and build them in a partnership the companies valued at $ 2 billion. The Hindenburg report was shut down two days later and has reportedly sparked investigations by the Securities and Exchange Commission and the Department of Justice into Milton and Nikola.
GM declined to say whether it was aware of allegations of fraud or sexual abuse related to Milton. GM CEO Mary Barra defended and said the company’s deal with Nikola earlier this month “reasonable care” performed prior to the announcement of the agreement.
The partnership with Nikola is due to close on Wednesday, but a spokesman told CNBC in a statement that it was not a closed deal.
“Our transaction with Nikola is still ongoing,” said a GM spokesman on Monday in an email to CNBC. “We are continuing our discussions with Nikola and will provide further updates as needed or necessary.”
Nikola spokeswoman Colleen Robar said Tuesday: “Both sides are still negotiating. As soon as we have something to report, we will do it. But it definitely goes on.”
Since the deal was announced, Nikola shares have fallen more than 60%, making the company less attractive to GM. The deal can be terminated by either side if it is not completed by December 3rd. This is evident from a public filing when the partnership was announced.
GM was introduced to Nikola by Steve Girsky, former GM vice chairman, who succeeded Milton as Nikola’s executive chairman earlier this month. Girsky is a managing partner at VectoIQ, the special-purpose acquisition company that Nikola took public. He joined Nikola’s board of directors after the deal was closed.
Regarding Nikola, Girsky previously said his company “showed up with an army of people to look into this matter” a webcast with an industrial fair, Autoline, in early August.
“We really crawled over these guys. It wasn’t comfortable at times,” he said, adding that he had “no doubt there would be twists and turns here, but I’ve risked my reputation for this. “
Girsky did not return calls or texts for comment. VectoIQ did not return any emails. Nikola declined to comment.