Stock Prices Unexpectedly Surge
[Asia Economy Reporter Kwon Jae-hee] Nikola, a hydrogen electric vehicle company embroiled in a fraud controversy, has postponed the launch event for its new electric pickup truck, originally scheduled for December, citing the novel coronavirus (COVID-19).
According to AFP on the 30th (local time), Nikola announced that it has decided to move the 'Nikola World' event, which showcases new vehicles and technology, to a time when Nikola-related personnel can safely gather.
The event was initially scheduled for December 3rd.
The announcement of the postponement came amid ongoing fraud allegations surrounding Nikola's technological capabilities.
Along with the event postponement, Nikola also released a timeline outlining goals such as the completion of its U.S. factory, finalization of vehicle prototypes, and the start of mass production.
Nikola cited recent policies from the European Union (EU) and California regarding the phased elimination of internal combustion engine vehicles, stating that it is developing eco-friendly trucks, recreational vehicles, and hydrogen refueling stations to meet the demand for such green transportation solutions.
Regarding the development schedule, Nikola plans to complete the first phase of its production facility in Coolidge, Arizona by the fourth quarter of next year, release truck prototypes from its German factory by the end of this year, and enter mass production in the second half of next year.
Mark Russell, CEO of Nikola, stated, "We plan to finalize negotiations with one energy partner to build a hydrogen refueling station by the end of this year," adding, "The first commercial hydrogen refueling station will break ground in the second quarter of next year."
This statement refutes media reports claiming that discussions with potential partners such as British energy company British Petroleum (BP) regarding hydrogen refueling station construction have been halted.
After about three weeks of decline, Nikola's stock price rose 14.5% on the day.
Nikola was previously embroiled in controversy after short-selling investment firm Hindenburg Research released a report on September 10th describing the company as a "complex fraud," alleging that it did not possess the core technology to produce hydrogen trucks.
While Nikola denied most of the allegations, its founder and chairman Trevor Milton abruptly resigned.
General Motors (GM), the automaker that entered into a manufacturing partnership with Nikola, initially stated that the agreement between the two companies would be finalized by the end of last month, but on this day said, "The agreement with Nikola has not yet been finalized," indicating that discussions are ongoing.
Investment bank JP Morgan Chase also released a report suggesting that GM might renegotiate terms, potentially increasing its stake in Nikola from the originally planned 11% to 25%, leveraging Nikola's difficulties.
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