NEW YORK: Nikola's stock dropped 15 per cent on Tuesday , extending its recent drop as certain insiders were allowed to sell shares of the electric truck maker a day after General Motors Co revised its deal with Nikola.
Nikola shares sold off Monday after GM scrapped its deal that involved an equity stake in the startup and plans for building Nikola's Badger electric pickup truck. It replaced it with a non-binding agreement where GM will supply its fuel-cell system to Nikola. Nikola's former boss Trevor Milton owns most of Nikola's locked up shares, and under US Securities and Exchange requirements would need to file notice within two business days following a sale of his shares.A spokesman for Milton, who owns 91.6 million shares in Nikola, declined to comment on Milton's plans for his stake.
The short-seller report came days after GM first said it would help scale up Nikola's Badger electric pickup production and take an 11 per cent stake and US$700 million, putting the deal under scrutiny.
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