Shares of Nikola Corporation tumbled more than 23% early Monday after the embattled company’s previously announced partnership with General Motors was significantly scaled back. Crucially, GM will no longer take a $2 billion equity stake in the aspiring electric-truck producer as was originally announced in September. Instead, GM will merely provide fuel-cell technology.
The original announcement came with much hype around the Phoenix-based Nikola, which was founded by serial entrepreneur Trevor Milton and went public earlier this year through a merger with a special purpose acquisition company. In June, Nikola stock skyrocketed to more than $93 a share after Milton announced it would be taking preorders for its Badger pickup truck.
But fortunes changed for the company after a lengthy short-seller report in September alleged that it was an “intricate fraud” built on deception and hype. Milton stepped down from his role that same month, and plans to produce the Badger have now been scrapped.
Nikola shares were trading at just over $21 a share early Monday morning, their lowest since September.