Nikola Corporation (NASDAQ: NKLA) share fell in the mid-day trading Tuesday after the Salt Lake City, Utah-based electric-truck maker posted another quarterly loss. It also announced that it is still discussing a strategic alliance with General Motors Co. (GM).
The company reported a loss of $117.5 million, or 31 cents per share for the third quarter, as compared to a loss of $15.5 million, or 6 cents per share in the same period last year. On an adjusted basis, loss was 16 cents per share, while analysts on average were looking for a loss of 20 cents. It did not offer revenue numbers for the quarter.
CEO Mark Russell said in a statement “we delivered on our commitment to assemble the first Nikola Tre BEV prototypes and are continuing to work with customers on the prospective and previously announced BEV truck orders.”
Nikola said Covid-19 will have no material impact on its long-term goals, and the company will keep offering updates related to progress of its overall product portfolio. The company also announced that it is discussing a strategic partnership with GM. If the deal is finalized, it will give GM a stake of 11 percent in the electric-truck startup in exchange for offering its battery and hydrogen fuel cell technology.
Nikola said it will go forward with its base plan if the deal collapse, citing technology-sharing agreements with other partners. News about the potential agreement between NKLA and GM first surfaced in September, but discussions were disrupted after Hindenburg Research released a report, which claimed Nikola was involved in intricate fraud by making vows it cannot deliver due to lack of technology.
Senior officials at Nikola strongly rejected those allegations that led to scrutiny by the Securities and Exchange Commission (SEC) and the Department of Justice. The company’s former executive chairman Trevor Milton left Nikola soon after the accusations and the stock has lost more than half its value since then.
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