Nikola Corporation (NKLA stock) defies fraud accusations and extends surge

NASDAQ: NKLA extends its gains and rises again on Thursday.
Investors are defying allegations of deceptions by founder Trevor Milton.
A report that General Motors may expand its stake in Nikola has prompted a buying spree.

Yohay Elam FXStreet

Will General Motors walk away from a deal with Nikola Corporation? Fears of such a move seem to have vanished, making way for hopes that the automobile giant may enlarge its stake in the electric vehicle maker.

CNBC's auto industry reporter Phil LeBeau said talks between the companies are ongoing and that GM may end up scooping up more than the 11% stake it originally planned when the firms announced a partnership early last month. The Detroit giant committed to building and developing the Nikola Badger, a pickup truck, and also to sell fuel cells and batteries.

The fresh hopes replace worrying reports. Short-sellers have alleged that Trevor Milton, Nikola's founder, cheated investors. The publications sent shares down as they were accompanied by fears that GM would abandon the deal altogether.

Is the trouble over for Nikola? It may be too early to tell. It is essential to note that rivals such as Workhorse – which has a promising product – saw its shares falling in recent days. Nevertheless, WKHS may provide a buying opportunity.

NKLA stock price

NASDAQ: NKLA surged to $24.11 on Thursday trading, up 17.72%. That adds to a 14.5% increase recorded on Wednesday.

Wednesday's closing price represented a doubling of the 52-week low of $10.20. However, Nikola Corporation's value is far from the 52-week high of $93.99.

See 2020 Elections: How stocks, gold, dollar could move in four scenarios, nightmare one included

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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