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From its name on down, it’s clear that zero-emission vehicle startup Nikola aims to emulate Tesla’s soaring trajectory. But over the past six months, Nikola’s efforts to follow that blueprint have faced a series of setbacks including fraud allegations, key resignations, and a reported fraud inquiry by federal regulators.
On Monday, the headwinds grew stronger when Nikola’s announced that General Motors will effectively withdraw from a planned partnership that was first announced in September. Investors had seen the deal as a huge win for Nikola, by giving it a massive jolt of credibility.
Under the proposed agreement, GM would have provided battery and fuel-cell technology to Nikola and manufactured Nikola’s planned Badger electric pickup.
In exchange, GM was to take an 11% stake in Nikola, … Read the rest