Nikola stock extends sale, but JP Morgan says partnership with GM is still likely

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Shares of Nikola Corp. NKLA,
-16,11%
fell 1.2% in pre-market trading on Monday, even as JP Morgan analyst Paul Coster reiterated his overweight rating on the electric vehicle maker as he tried to appease fears that a partnership with General Motors Co.GM,
+ 2,63%
could collapse. Nikola’s stock had fallen 16.1% on Friday, after Nikola chief executive Mark Russell said the company could handle if GM decided to pull out of the deal, but would cancel production plans for the Badger truck. Coster said he believes Nikola and GM are still likely to strike a strategic partnership by December 3. “Coster wrote in a note to clients. “GM needs to realize a return on billions of dollars of investment in hydrogen fuel cells, and Nikola might be the best option available. Nikola’s stock has fallen 60.0% in the past three months to Friday, while the S&P 500 SPX,
+ 0,01%
gained 8.0%.

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