GM "Reviewing Cooperation with Nikola"... Impact of Fraud and Sexual Harassment

Considering Passing the Negotiation Deadline at the End of This Month... "Will Announce Relevant Matters at the Necessary Time"

[Asia Economy New York=Correspondent Baek Jong-min] Negative news continues for hydrogen truck company Nikola. Automobile manufacturer GM is also reviewing its planned equity investment with Nikola. Nikola is facing a series of setbacks, including fraud allegations and sexual harassment accusations against Trevor Milton, who resigned from the chairman position.

According to CNBC on the 29th (local time), GM changed its plan to finalize partnership negotiations with Nikola, which was scheduled for the following day, the 30th.

Julie Houston Ruff, GM spokesperson, stated that day, "(The contract with Nikola) is not yet finalized. We will continue discussions with Nikola and will announce relevant matters at an appropriate and necessary time."

GM appears to be weighing whether to collaborate with Nikola while monitoring the investigation results from the U.S. Department of Justice and the Securities and Exchange Commission (SEC).

CNBC, citing sources, reported that GM had planned to invest an 11% stake in Nikola and produce Nikola's Badger trucks, but after fraud allegations surfaced and Nikola's stock price plummeted by 60%, the attractiveness of the deal disappeared. The sexual harassment lawsuit against Milton, reported a day earlier, also seems to have influenced GM's decision.

CNBC quoted statements from both parties explaining that the cooperation between Nikola and GM will automatically terminate if either side declares by December 3 that the deal has not been completed.

Meanwhile, on the same day, Nikola's stock closed at $17.88, down 7.36% from the previous day. GM's stock also fell by 2.2%.