A55, thanks for turning this thread into a cinemascope. When I scroll through, at just the right speed, it's almost like motion video.
GM doesn't want to start from scratch. Cheaper to buy into Nikola, and remove Nikola as a competitor.
But is NKLA even a competitor in anything? Do they actually have something that justifies their market cap?
What Nikola has, is mistakes. They made the mistakes already, and now GM doesn't have to lose money on R&D. GM obviously brings to the table what Nikola doesn't have. A plant. Cars which technology can be designed to work with. Access to parts. Et cetera. Nikola is sort of like....for lack of better choice of words.....I Have A Dream. GM has tools to help bring it to reality. Forward looking is that Nikola's research is viable. Their design plans could work. GM can mass produce the car, has worldwide distribution......
I take back calling NKLA stupid. When GM throws $2B for your stupid pictures, its no longer stupid. Its $2B.
Can they be stupid, and lucky, at the same time? Essentially, all that they have are plans. Blueprints. Drawings. They probably have no way to physically build a car. No door latches, a door, grade 8 bolts..... Even I can draw a battery, connected by 2 lines + & -, to a motor with an output shaft, connected to wheels. I just can't build it myself. Sort of like drawing shoes, like Kanye, then getting Adidas to make the shoe.
Yep, that is exactly what happened here. Fake it till you make it. Have the designs ready to go, find a buyer and make your pictures into reality.
Good read. https://hindenburgresearch.com/nikola/ Looking at naked shorts tomorrow for October/November. Pretty confident they will go otc from sec halt which will absolutely wipe out some robbinhood accounts since they can not trade otc and will be liquidated causing even a larger drop.
I like GM. It broke my heart when GM partnered with Nikola. Either GM knows something about Nikola that I don't, or GM made an extremely bad business decision that will have a noticeable negative impact on their future. I'm betting the latter. Nikola doesn't look all that different from Tesla, at a distance. It does look different, though. Tesla had technology demonstrators and were working away like busy beavers on many small projects, back in the beginning. They converted a Smart FourTwo, were selling components to Mercedes and Toyota very early on, they had a contract with Lotus, they had a pre-production roadster on the road within three years and were selling them in relatively large volume at the five year point in the company's history. Nikola is five years in. They have far better financing than Tesla had, at the beginning.
“Nikola is five years in. They have far better financing than Tesla had, at the beginning.” and not even a single viable product they can sell, even a component. They don’t have any sort of ground breaking hydrogen Fuel cell components to sell to the public. The only thing they have is T-shirts and stickers or some solar panels to install on the CEO’s $35mil homes roof. there is no way anyone can compare Tesla to Nikola. It’s a penny stock that has had an epic pump.
Oh DAYUM! Almost to Aug lows! That was one serious pump there with the GM news. Somebody took a massive opportunity to lighten their load!
Can they fuck up that badly? Surely the board met up and researched some shit beyond the glossy pamphlet NKLA hands out? At least you want to think that. On the other hand, its possible GM is just trying to buy into some of the hype.
