Nikola stock keeps falling as GM abandons equity stake

Crucially, GM will no longer take a $2 billion equity stake in the aspiring electric-truck producer as was originally announced in September.

Nikola released a statement on Monday morning that described a non-binding MOU, which was signed by both parties, outlining a partnership between the two companies that would have GM supplying its fuel-cell systems into Nikola's semi-trucks.

That announcement came just days after Nikola founder and Chairman Trevor Milton resigned after a Hindenburg Research, a company that's betting Nikola stock will drop, accused Nikola of Fraud.

Nikola's shares initially rose nearly 8% in pre-market trading, but subsequently turned negative and were down more than 16%.

Hindenburg said Nikola's success was an "intricate fraud", including a video showing a truck rolling downhill to give the impression it was cruising on a highway, and stenciling the words "hydrogen electric" on the side of a vehicle that was actually powered by natural gas.

Nikola's shares were down nearly 22% in morning trading, while GM's were marginally down.

Nikola said it would refund all previously submitted order deposits for the Badger as that rollout was dependant on a manufacturer partnership.

Nikola executives have said the Badger pickup would be built only through an arrangement with an outside company. The Hydrotec system will be developed at GM's tech centers in Pontiac and Warren, Michigan, and manufactured at its Brownstown battery plant.

GM said Nikola will pay upfront for the capital investment necessary for the fuel-cell capacity. Doug Parks added, "Providing our Hydrotec fuel cell systems to the heavy-duty class of commercial vehicles is an important part of our growth strategy and reinforces our commitment toward an all-electric, zero-emissions future".

This story has been published from a wire agency feed without modifications to the text.