Nikola: How to Parlay An Ocean of Lies Into a Partnership With the Largest Auto OEM in America
More at the link.The underlying narrative for the electric vehicle market in 2020 has undoubtedly been Tesla’s relentless rally, which recently culminated in the company being valued with a market cap of over $400 billion at its peak—more than time-tested names like GM, Ford, Daimler and Fiat – combined.
Unlike Nikola, Tesla develops extensive proprietary technology, which cuts many traditional automakers and suppliers out of its picture. The astronomical rise in Tesla’s valuation has pressured other auto companies, like General Motors, to unlock similar value from the ongoing EV wave. In August 2020, analysts from Deutsche Bank and Morgan Stanley pressed General Motors to spin off its electric vehicle business, stating that such a move dedicated to EV could be worth “up to $100 billion”.
“Nothing is off the table,” GM CEO Mary Barra said at the time, appeasing analysts and winning a price target boost from Morgan Stanley shortly thereafter.