Nikola Shares Collapse as CEO Says They Can Go it Alone Without GM Partnership

Shares of zero emission vehicle maker Nikola were dragging as much as 16% on Friday after the company’s CEO said that the company could go it alone even without a GM partnership.

The companies have been in ongoing discussions on a proposed strategic partnership on technology-sharing and manufacturing. Nikola chief executive Mark Russell said in an interview late Thursday that if the deal falls apart, the company would revert to a “base plan” without GM’s help.

“We have the ability and we have a base plan of doing it ourselves. If we have a partner, that just enables us to consider going faster and helps reduce the risk,” said Russell. “We’ve proven that over the years that we are a partnership company when those things are available to us.”

GM would potentially take an 11% stake in Nikola as part of a cash-free deal in exchange for providing access to fuel-cell technology and for manufacturing the company’s electric pickup the Badger. The talks have a deadline of December 3rd.

The potential GM partnership has been scrutinized since Nikola founder and former Chairman Trevor Milton was accused of deception, claims that Milton and the company have denied.

According to Russell,Nikola is prepared to drop the truck if it can’t secure an agreement with an original equipment manufacturer like GM. “The Badger is part of our discussions with GM. And we’ve been clear all along that we wouldn’t build a Badger without an OEM partner,” he said.

GM’s Executive Vice President of Global Manufacturing Gerald Johnson said on Friday, “We have not finalized a deal. We’re working on the details.”

Nikola has also had discussions with oil company BP Plc about setting up a network of hydrogen-fueling stations across North America according to a Bloomberg report in September. The company said it plans to announce a partner by year-end.

Russell has said that Nikola has a plan to develop hydrogen infrastructure on its own if it’s unable to arrange a suitable alliance here as well.

Nikola is additionally working on a battery-electric semi truck to be built next year in Ulm, Germany, in a joint venture with CNH Industrial NV’s Iveco unit.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.