The Hindenburg of Electric Vehicles?
We learn this morning the U.K. has approved the Pfizer/BioNTech vaccine…
We won’t get into the medical breakthrough this represents — specifically for mRNA technology — or the prohibitive hurdles of cold storage and Brexit… but for our readers, does this approval change your mind about getting the vaccine yourself?
Send your opinions to, TheRundownFeedback@SevenFigurePublishing.com.
Your Rundown for Wednesday, Dec. 2, 2020…
The Wheels Fall Off an “Intricate Fraud”?
We promised we’d keep you posted about an unfolding scandal in the electric vehicle (EV) space.
Although it feels like a lifetime ago in this pandemic hellscape, in September, Detroit automaker GM hammered out a deal with electric vehicle up-and-comer Nikola Motor Company.
If you recall, General Motors planned to sink $2 billion into Nikola (ticker: NKLA), and take an 11% stake in the Phoenix-based company. With GM’s backing, the electric Badger truck was expected to roll out by the end of 2022…
Courtesy: Nikola Motor Company’s website
But soon after the announcement of the GM partnership, the wheels started falling off what Hindenburg Research (the irony) called “an intricate fraud.”
Hindenburg reported Nikola had taken credit for technology that actually belonged to a second-party vendor, deceiving shareholders (and presumably stakeholders like GM). After the revelation, Nikola CEO Trevor Milton promptly resigned.
Then on Monday, according to The Arizona Republic, we learned: “General Motors has canceled a planned $2 billion investment in Phoenix-based Nikola Motors and the Detroit car giant won’t help develop the electric-vehicle company’s Badger pickup truck as planned.” Also canceled? GM’s 11% stake in NKLA.
In addition, Nikola announced it will “refund all previously submitted order deposits for the Badger,” amounting to $6.9 million, according to Nikola’s quarterly financial filing.
While it appears GM is slowly… backing… away from Nikola, “the two companies signed a new memorandum of understanding that calls for the use of GM hydrogen fuel-cell technology in Nikola’s medium- and long-haul big rigs.” Or prototypes that might roll out late next year or early 2022.
Our takeaway? We once asked if Mr. Milton was the yin to Elon Musk’s yang… Apparently not. And with NKLA stock imploding — and allegations of chicanery — we question Nikola’s survival.
Market Rundown for Wednesday, Dec. 2, 2020
S&P 500 futures are down 10 points to 3,650.
Oil’s static at $44.51 for a barrel of West Texas crude.
Gold has added $3.00 to its price at $1,821.90 per ounce.
Bitcoin’s jumped $361.75 to $19,158.40.
Send your comments and questions to, TheRundownFeedback@SevenFigurePublishing.com.
We’ll be back Friday, and we welcome your feedback: Does the U.K.’s approval of the first COVID-19 vaccine change your mind about the vaccine — one way or another?
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