Why Nikola’s talks with energy companies are said to be stalled


Nikola Corp.’s talks with energy firms including BP PLC to build hydrogen-refueling stations have been stalled following a short-seller’s allegations that the electric automaker misled investors, the Wall Street Journal reported.

Potential partners have been reluctant to move forward amid the heightened scrutiny, but a deal could still come together, the Journal reported Wednesday, citing people familiar with the matter.

Nikola and BP did not immediately respond to Reuters requests for comment.

Shares of Nikola were down 10.6 percent to $25.48 in midday trading Wednesday.

In a scathing report two weeks ago, short-seller Hindenburg Research said it had enough evidence to show Nikola and its founder Trevor Milton made false claims about the company’s proprietary technology to form partnerships with automakers.

Milton resigned following the allegations but Nikola CFO Kim Brady said Tuesday the company has the backing of all its existing automotive partners.

Nikola has publicly rejected the accusations and has threatened to take legal action against Hindenburg.

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