THE MAIN COMPETITOR OF TESLA COMPANY IS ON THE BRINK OF BANKRUPTCY

The American company Nikola, which competes with Tesla in the production of electric cars, is on the verge of ruin. On Monday, the brand's shares fell more than by 25%. The reason for this collapse was a refusal of General Motors (GM) to acquire an 11% stake for $ 2 billion.

The announcement that Nikola Motor, founded in 2014, nevertheless signed a memorandum of understanding with GM, initially led to an increase in stock prices by 29.4%, to $ 35 per share. However, as noted by a number of experts, the reaction of investors could be associated with insufficient immersion in the content of the text of the memorandum.

Having read it thoroughly, the investors discovered that the text did not say anything about the joint release of the Badger electric pickup truck, which was initially considered as the main object of possible cooperation.

Investors began to dump shares and the price of the Nikola's quotes went negative. Such a collapse of the company's shares by more than 20%, according to American experts, may turn out to be a stick in the wheels of a corporation that is gaining financial momentum.

We should recall that the Nikola company (named after Nikola Tesla) emerged as a startup with the aim of establishing a large-scale production of vehicles completely free from hydrocarbon emissions. The company has previously released concepts for trucks equipped with an electric drive, now it remains to launch their mass production. The mass production of Badger sports utility vehicle, which was at the epicenter of a reputation scandal a few months ago, was planned to be launched by the end of 2022.

In the beginning of this autumn, Nikola and GM have already agreed on cooperation.

It was planned that GM will supply electric batteries and fuel cells, which Nikola trucks will be equipped with. However, after the publication of the research results, published by the Hindenburg Research company (by the way, one of Nikola's shareholders), a reputation scandal erupted, as a result of which the startup was called a "soap bubble", and the head of the company resigned amid accusations of fraud.

It turned out that the head of the company, Trevor Milton, was cheating partners, investors and ordinary customers. In 2018, the company presented a commercial, in which a hydrogen-fueled truck was rolling along the road. It turned out that to shoot the Nikola One in Motion video, the car simply rolled off the hill, and the truck production technology itself was purchased from a third-party organization.