Nikola Falls Following WSJ Report on DOJ Probing Claims Co. Misled Investors
September 15 2020 - 3:29PM
Dow Jones News
By Maria Armental
Nikola Corp.'s stock fell 8% to $32.88 after The Wall Street
Journal reported the Justice Department is also looking into
allegations the electric-truck startup misled investors by
exaggerating claims about its technology.
The Justice Department's inquiry is being handled by the
Manhattan U.S. attorney's office, working with the Securities and
Exchange Commission, which has initiated its own examination of the
claims about Nikola, according to people familiar with the
matter.
General Motors Co. Chief Executive Mary Barra has said the auto
maker remains committed to a deal with Nikola that would give GM an
11% ownership of Nikola and defended the company's due
diligence.
Under the deal with Nikola, GM would largely serve as a supplier
and contract manufacturer, agreeing to provide batteries and
fuel-cell technology for future Nikola vehicles, while building the
company's planned pickup truck at a GM factory.
GM recently traded 1.3% higher at $31.57.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
September 15, 2020 16:14 ET (20:14 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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