- NASDAQ:NKLA jumped again on Wednesday, gaining 7.34% on the day.
- General Motors speaks publicly about moving forward with Nikola.
- The two companies have until December 3rd to finalize a deal.
NASDAQ:NKLA has finally reversed its movement with a 7.34% gain on Wednesday after General Motors (NYSE:GM) finally spoke publicly and reassured investors that they intend to follow through with the deal. Shares closed up at $22.24 which was a positive sign as broader markets declined once again. Despite a couple of good bounce back days for Nikola, it still has a long way to go as it continues to trade well below its 50-day and 200-day moving averages.
It was General Motors President Mark Reuss who revealed that the classic American automaker still had every intention of following through on its deal with Nikola. Shares of Nikola were shaky last week when current CEO Mark Russell hinted that if a deal could not be reached, Nikola’s Badger truck may be dropped from the product line. The commitment from General Motors is some of the only good news Nikola investors have received over the last few months, as they have been taken on a whirlwind ride after former CEO Trevor Milton stepped down amidst allegations of fraud and misleading investors.
NKLA stock price
Any news is good news right now for Nikola as investors have been looking for anything to re-ignite their optimism in the beleaguered automaker. Still, the deadline has been set for December 3rd for both companies to reach an agreement, so there remains some possibility that this still may fall through. After everything that Nikola investors have been through over the last six months, nothing would surprise them at this point, although GM’s public backing of Nikola can only be seen as a promising sign.
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