Nikola Motor Company Two trucks
Source: Nikola Motor Company
Nikola Shares rose about 12% in morning trading after the competitive electric vehicle start-up after founder and former chairman Trevor Milton reaffirmed its business plans and manufacturing targets Resignation last week.
The company said it “continues to strive to hit a number of milestones” previously described despite Milton’s exit due to fraud cases the company was involved in Reportedly investigated from the Securities and Exchange Commission and the Department of Justice.
“With the support of our business partners and suppliers, we are concentrating on implementing our strategic initiatives and laying the foundations for becoming a vertically integrated provider of emission-free transport solutions,” said the Company said in a press release.
Aside from the company delaying a personal event called “Nikola World” in December, plans remain essentially unchanged from those previously announced by the company.
Short-term goals include testing the Nikola Tre semi-trailers in Europe by the end of this year, followed by production in the fourth quarter of next year and the announcement of a partner for the hydrogen station network. The company also said production at an Arizona facility remains on track to begin manufacturing in 2022, followed by additional construction of the facility in 2023.
The company didn’t mention any plans for its Nikola Badger pickup, which is expected to be produced by General Motors Nikola spokeswoman Colleen Robar said the company didn’t pick up the vehicle as executives continue to actively negotiate with GM over the $ 2 billion deal.
The Nikola-GM Agreement was expected to close by TuesdayThis was three weeks after the partnership was announced on September 8th. Negotiations have gotten more complicated after Milton’s resignation on fraud allegations and more recently sexual abuse.
Two women, as first reported by CNBChave now filed sexual assaults against Milton with the Utah authorities. Both allegations were older than 15 years, but involved a cousin and a clerk when they were both 15 years old. Milton’s cousin Aubrey Ferrin Smith said he attacked her in 1999 when she was 17, while the other woman said her alleged attack occurred in 2004 when she was 22. CNBC will only identify sexual assault victims if the victim publishes their name.
Nikola shares have fallen more than 60% since the deal was announced, in which GM acquired an 11% stake in the company.