Nikolas Talks with GM Continue as it Reports Quarterly Loss

Reuters Electric and hydrogen truck startup Nikola Corp said on Monday its deal with General Motors has not closed, and the startup is continuing discussions with the automaker.

The company, which also posted a smallerthanexpected loss for the third quarter, said it will provide further updates on the deal when appropriate or required. Shares of Nikola were up 1.7 in afterhours trading.

The alliance announced in September included plans for GM to supply Nikola with fuel cells for its large commercial trucks and in return receive an 11 stake and payments up to 700 million for building the startups Badger electric pickup. Speculation has centered on GM possibly taking a higher stake after the fallout from a shortseller attack accusing Nikola of being a fraud.

GM said last week it remained in talks with Nikola, but a deal had not been finalized. If a deal is not closed by Dec. 3, either side can terminate.

Days after the deal was announced, shortseller Hindenburg Research released a scathing report claiming that former Chairman Trevor Milton, who has since resigned, had made false claims about the companys proprietary technology. Milton has denied any wrongdoing, and federal officials are investigating.

Excluding items, Nikola posted a loss of 16 cents per share, while analysts were expecting a loss of 20 cents according to IBES data from Refinitiv.

Nikola said during the quarter it and IVECCO, a CNH Industrial brand, began assembling the first five Tre electric…

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