and a wild ride this week for nikola motors after announcing a $2 billion partnership with gm, the focusgative report by a short-selling firm: what's next for the deal. on the round table, ben levisohn, carlton english and jack howe. guys, it's great to see your smiling faces again. had a little hiccup at the end of august with a bike accident, but i'm back in the saddle. ben, what goes up must come down was the story in the nasdaq market this past week. >> yeah. i mean, it was a bad week for the market, but it was a really bad week for the nasdaq and tech stocks. with the dow finishing the week down 1.7%, but the nasdaq off 4%. and it wasn't really bad news out there to really knock them down. good earnings from the tech companies that reported from the most part. there was a little fear that stimulus wouldn't happen but nothing that really causeed it to go down other than the it seemed they were overcrowded and people were a little bit afraid. looking awe heed, earnings from adobe, we're going to have an apple announcement, probably a new iphone and a fed e meeting, but right now those

. >> a short seller joining the chorus against nikola motors still down nearly 50% in the last threemonthshil lebeau joins us with more >> tyler, it is a day of accusations. the accusations being refuted by nikola we'll walk you tlo you this including more people questioning why nikola said what they said in the past. first off, out today basically with the rebuttal to the allegations that it made a lot of false claims. those comments from nikola saying that the allegations are inat rake. they refuted ten claims, however this video they did confirm the research said, look this is not a truck that was driving itself in this video that was not 2017. and nikola confirming that the video in this -- this shows the truck not power itself the defense, they say nikola described this third party video on the company's social media as in motion. it was never described as under its own power pain driven. a short seller with muddy waters research tweeted out repeatedly accusing them of manipulation and confirming facts and arguing pins is discrediting it nikola in my experience, investors see through

. >>> welcome back shares of nikola motor plunging 15% after two short sellers have accused the electric maker of fraud and deceit. dohm chu is here with their response to the allegations. sfwh big soap opera. nikola says the reported allegations of fraud are without merit and that they untend to seek legal recourse for a "hit job for short sale profit driven by greed." nikola founder made fraudulent statements about the technology and capabilities earlier today, citron research came out in support of hindenburg tweeting con congratulations for exposing fraud and covering half of the legal expense that's he could rack up in a battle with nikola. they say the securities and exchange commission should look into each other. they went there the spac earlier this summer. that subsequent $2 billion investment trading partnership for them for future electric vehicle production nikola retained a law firm to represent it and just in the last couple of moments here, trevor milton has taken to instagram to say that he is in fact about contacted the sec they didn't call him it's a whole drama remund

and that is that obviously all of the news is going on around nikola that may have some impact on general motorsbut it's not the key story for general motors' success. one of the things i also like is that put selling is really a good investment strategy when you take a look at things that you can do recurrently to generate some yield to buy stocks that you want to purchase at lower prices so those things all make sense to me obviously general motors has been trading at a discount for quite a while. and one of the things they are facing is they have a lot of debt but at the moment they have sufficient cash to cover their needs. and the put that he's selling, expiring as it does in october, actually expires prior to the next time they announce earnings, which will obviously be the big and major catalyst that could potentially move the stocks sharply so i like the strategy if i was forced to try to say would you rather, nikola or general motors or tesla, general motors is probably the stock that i would choose. >> i'm excited to get to carter's take. because if you take a look at the ten-year char

>> nice move higher for general motors and nikola, which is back over $50 a share this agreement between the two companies is really a win-win situation. this is a case where both companies are going to benefit, general motors getting size and scale. nikola no longer has to think about shelling out billions to start up manufacturing gm expects at least $4 billion in benefit that is important as they look for size and scale nikola gains the access to gm's expertise. they have vast experience and knowledge when it comes to electric vehicles. nikola will save about $4 billion in manufacturing cost. the nikola badger coming out in 2022 will be built by general motors the software that goes inside of it in terms of the entertainment system, that will be different the guts will be the same, the batteries, the motor that's all going to be the same but it's the top that's going to testi differentiate the badger pickup truck from the gm pickup truck remember that general motors is also getting a board seat with nikola at the end of the day, you're going to see more of these types of deals

>> i'm long general motors, so the answer would be yes. i liked the nikolaefore the hindenburg came out but i think they haven't negotiated a final deal yet. we may see a very different deal, a deal that's even better for gm than the one originally announced. even if they do, it's a bit of a black eye for gm i think it's an interesting deal for gm they can get a better deal than they cut originally. so i think let's see how it plays out. it will be either really good for them or they'll walk away with a little bit of embarrassment but having put no money up at all, i think they'll have to go on and look for the next product that hopefully will invigorate their ev business. >> there's certainly a difference between nikola and tesla. tesla is a different type of company than nikola, a different part of the life cycle would you rather nikola or tesla at these levels? >> you can't do this to me, dom, please [ laughter ] >> it's a case where they are apples and oranges there's some commonality in both of these stories they're long on promises the story out of tes

as a rule, over the past few days, these key partners for nikola, including general motors. alian firm. coming out in support of nikola ining that they believe partnerships, believe in the vision that nikola is trying to push out. the cfo is speaking at a conference today basically talking about how ridiculous it was that his partners, these big names in industry and automotive had been hoodwinked. he said, these are multinationals, companies with great experience and heavy industry. the cfo today was dismissive of this. 'sen it comes to nikola rebuttal, it was not so much point by point, it was basically more counter arguments that nikola was making. nikola's main point is that the allegations by hindenburg, they believe, are false and misleading, and the main motivation is -- caroline: making profit from a manufactured decline. it seems as though the founder has been making some bets on his own stock because trevor nielsen himself purchased shares today for $1.3 million. what is the next step? are we expecting them once again to speak out? ed: i think they have probably sai

that is the electric truck they will build with nikola general motors is due to receive 11% stake in n that transaction closes there is pressure on gm, but really the big pressure today is on nikola. shares down 20%. at one point it was down 26% or 27% today. starting to hear from analysts saying okay, we don't think is a complete lost here, but we're still trying to assess the situation. >> as we all are, fill, thank you for bringing that to us. the street's number one tesla ann list will join us up next ahead of the company's battery day. so don't go anywhere, we'll return in just two minutes jean, did you know geico is now offering an extra 15% credit on car and motorcycle policies? that's great! that's 15% on top of what geico could already save you. so what are you waiting for? john stamos to knit you a scarf? all finished, jean. enjoy! thank you. i give. the stitch work is impeccable. it's just a double fleck pattern with a reverse garter stitch. no big deal. is your hair this soft? softer. geico. save an extra 15% when you switch by october 7th. >>> let's get a check on today's

that is that obviously all of the news going on around nikola may have some impact on general motors but it's not the key story for general motors' success. put selling is really a good investment strategy when you take a look at things that you can do recurrently to generate some yield and buy stocks that you want at lower prices obviously general motors has been trading at a discount for quite a while. they have a lot of debt, but at the moment they have sufficient cash to cover their needs. the put he's selling expires before the next time they announce earnings. i like the strategy. if i was forced to try to say would you rather nikola or general motors or tesla, general motors is probably the stock i would choose >> i'm excited to get carter's take if you take a look at the ten-year chart, gm shares are actually lower than they were ten years ago. >> that is the irony we're coming up on the ten-year anniversary of obviously the equity went to zero. bailed out by the government it was november 17th, 2010, so in a month and a half it will be there. the ipo price was 33 on the news

nikola denied allegations. you can see general motorhares up, nikola down. >> regeneron drug helps threat covid-19 in early stages preliminary results could produce an eua from the fda that may allow the drug to be prescribed the company's cofounder and chief scientific officer will join "squawk box" this morning at 7:20 a.m. eastern time. >> micron expects to see significant sales hit this quarter d quarter primarily due to shipments to huawei. shares off 4.5% pre-market >>> still on deck, the nearly 20 year wait is over on wall street as the once secret palantir takes off today. we'll speak to one investor. . >>> welcome back to "worldwide exchange." indoor dining is resuming in new york city today. the move comes more than six months after the eateries were forced to shut down. many were forced to shift their entire business models many with outdoor dining and indoor dining set at 25% these places are facing their make or break moments. with our guest, flip siggy a filipino taqueria, are you optimistic about the given restraints >> w

nikola. general motors is standing by its agreement with nikola.ember, it's taken an 11% stake in nikola. it will also be building the electric pickup truck and it will be having high sales that nikola is currently developing in europe. there you see gm down nearly 2 bucks today. >> reports of his arrest had to be denied. that's the level we're getting to with trevor milton. what gets me is where do the nal analogies with tesla stop? the guy has just left the building, and i guess the question for stock and investors now is how important is his presence to that story >> he certainly was the oxygen that made the stock move and put a lot of the excitement behind it steve gersky who put the deal together with the ipo, he's going to be working now with the ceo of the company, and i think the people will look at this and say, okay, does he dial things back and focus mainly on the hydrogen fuels semi? what are the next steps? they need to say, look, we're going to deliver on some of the promises that are out there. >> phil, thank you very much phil lebea

. >> that's for sure >>> still ahead, short seller taking aim at nikola just days after its deal with general motors calling it an intricate fraud. check out this mystery stock the stock has soared from its march lows one said it could be the ultimate reopening tdera more "power lunch" next. plap give you straightforward ae and tailored recommendations, with access to tax-smart investment strategies designed to help you keep more of what you've earned so you'll know you're doing what you can for your family and your future. that's the clarity you get with fidelity wealth management.

general motors announced a $2 billion equity stake in nikola, partnering up to manufacture a new electricdens general motors's that on alternative energy cars and providing nikola a much-needed dose of credibility. >> is actually a really good deal for both parties. probably the most important thing about this is one, or able to get an oem with the best supply chain in the world that can build our nikola badger. the hard part is that it takes billions to build a factory and it takes decades to limit supply chains the right way. the second thing they bring is the ability to leverage their batteries. that would be their part supply. the batteries are going to save $4 million. even just from the batteries, we have doubled our -- what we exchanged. we gave up about $2 billion worth of stock. their batteries cost 30% less than hours. just a huge advantage along with the excess of everything else. imagine having one of the best teams in the world to manufacture your truck for you. could not wish for anything better. >> a lot of comparisons to draw between your company and tesla because of the n

before striking the deal nikola will have its badger electric pickup truck built by general motors heard nothing at all from the chairman of nikola, trevor milton. you have to wonder if these investigations take away the real oxygen that has pushed this stock higher over the last month. trevor milton on social media friday, but not since then. >> he had that sort of monologue that had some profanity in it that we bleeped out. we aired part of that. bloomberg had that report about the pickup truck or the semitruck not actually being functional at an event a long time ago has gm not said anything >> they have not said anything i think general motors' position and this is conjecture based on conversations with people at the company. if this turns out that nikola is really not what everybody thought it was going to be, what's the worst that happens? they no longer build it. it's a little embarrassing for general motors since they said they did appropriate diligence from general motors' perspective it's too early to pull the plug. you can't be happy that nikola is under investigation bu

when we reached out to general motors, remember they taking an 11% stake in nikola.id we stand by the statements that were made on the day of the announcement. at the end of the day, this is going to come down to whether or not somebody has some smoking gun or if this will be one more short seller who makes an allegation and then over time it kind of fades away >> a part from the fact that one wonders about trusting a short te seller who goes by the names of hiddenburg that creates all sort of visual illusions, that i don't want to contemplate. how much of a decline would you attribute to short tellers or people losing the enthusiasm and buzz or just the markets been moving downward too. what would you expect? >> there's a bit of the market moving down that has weighed on shares of both general motors and nikola the short telling, my sense is there's more short sellers moving in on nikola. that's not a surprise. the shorts have come out and said we don't buy into this. we don't buy into the hype you have a company with barely any revenue. we think it's ripe to fall i

you look at that, that looks terrible terrible 100% for nikola the question you guys were discussing is what are the implications for general motors. keep this in mind, nikola was seeking out an original equipment company, oem in the industry, automaker, to build the badger electric pick up truck and general motors offered the most attractive package in terms of the technology they brought to the table and yes, general motors didn't the have to spend money, they are not buying nikola but are getting 11% stake as part of the agreement to work with them, will it buy gm as a bad move if it all falls apart, at worst it's embarrassing because she came out and said we did due diligence and think this validates our technology if it ends up not validating the technology it all fall as part, but is not the end of the world. the technology and hydro tech is still extremely valuable and can be used not just for general motors vehicles but other automakers in the future. >> what about, and again, phil, we're just going to talk about what is in the short-seller's report, publicly available information without editorializing or making assumptio

. >> coming up, nikola out with a big announcement forming a strategic partnership with general motorsl be engineered and manufactured by gm gm is getting 11% ownership of nikola and the right to nominate one director to the company's board. as well as gmceo mary barra. next, gm gets a $2 billion equity stake in the company in exchange for in kind contributions. it's kind of interesting we'll be talking about it. gm will engineer, validate and build the badger for both the battery electric vehicle and fuel celek trick vehicles that are part of the in kind services nikola anticipates battery and power train. also $1 billion in engineering and validation costs with this deal, this alliance with general motors >>> elsewhere, amd -- >> it's remarkable. >> yeah, isn't it, andrew. go ahead >> i was going to say, you look at the market companies of nikola and gm. nikola is 1/3 of gm and now you're putting them together to some degree. i think a lot of people thought of nikola as a sort of tesla smaller version, we're going to talk with mary barra and the ceo in just a moment how does this cha

shares of nikola down about 3% remember, general motors took a $2 billion stake in nikola gm declinedy whether the company was aware of any allegations of fraud or sexual abuse regarding milton the full story on cnbc.com the sec has charged former amazon finance manager with insider trading. claiming the man who worked in the tax department h-- the saidf her husband who would trade the stock with his father. >> jp mrg an chase said the consumer unit will remain remote working until 2021 they took some heat for ordering senior traders to return to their offices. >>> to other headlines, philip mena now with more >> good morning. with err getting a look at the body cam footage that reveals the tense moments leading to the address of president trump's former campaign manager. his wife called reporting potential suicide plans. parscale is now hospitalized we have breaking news in the briona taylor case an anonymous member of the jury has filed for a motion accusing the attorney general using the jury as a shield kentucky attorney general responded to this overnight saying he does not have

nikola displayed an ability to raise funds. working and do have two fuel cell prototypes. the idea was that general motorseverage that, use their own technology and the foundation of what nikola set up. we also know that talks with energy giant bp are still ongoing over a hydrogen infrastructure partnership. chair of nikola's board, he made the introduction between the two companies. it is hard to tell. ludlow, i know you will continue to carry this one for us. coming up, we will look at what to expect out of tomorrow's first presidential debate. in a viral news cycle, there is no room for error. this is bloomberg. ♪ emily: welcome back to bloomberg technology. trump and biden hit the stage in cleveland tomorrow night, marking the very first time the two will debate each other. tomorrow's event will be the first of three presidential debates leading up to the election, leaving little room for error on either side. with us on the phone to look ahead to the event, wendy benjamin. what is at stake tomorrow? obviously, it is a huge night. both of these candidates have a lot on the line. wendy: they absolutely

>> well, the relationship remains between nikola and general motors but trevor milton was the drivingniko nikola, the stock exploded in may all the way through ten days ago, that's when you had the research that came out that essentially was from a short seller saying, look, we think a lot of this doesn't add up we think trevor milton at the heart of this is inflating the capabilities of what this company can do trevor milton issuing a letter last night to the nikola board of directors and putting it out on social media, in it he says i asked the board of directors to let me step aside as my roles of the executive chairman and the nikola board of directors. the focus should be on the company and not me who takes over as chairman of nikola steve girsky he was the chairman of invecto which put together the spac ipo earlier this year. former vice chair of general motors long-time analyst. auto analyst on wall street. he will be the executive chairman or he will be the chairman not executive chairman of nikola wedbush saying trevor stepping down and nikola will be perceived by the street

modification to the agreement that came out on september 8th here was the agreement between general motors and nikolaake an 11% stake in nikola. it's lower now with nikola under pressure gm will provide ev technology and hydrogen fuel cells and gm will build badger pickup truck this is about size and scale not paying any money it's worth $2 billion. the semi-truck is at the heart of the controversy a research came out with a report that said that truck wasn't propelling itself it was going down a hill. one. of several revelations that came out and as a result they are going looking at this deal again. take a look at shares of nikola. keep in mind that 11% stake that gm has that's worth far less with this stock down more than 65% over the last couple of weeks. we'll stand by, guys, but we know that the talks will continue the deadline that was set for today that's not going to be highly unlikely it will be met >> phil, we just had doug parker and sara -- >> i heard it. >> they are holding out hope for something today. what are you hearing >> reporter: well, i know they are holding out hope as are othe

one of the hardest hit stocks, tesla down another 18% general motors adding insult to injury after taking a stake in its competitor, nikola >>> the airlines holding up after morgan stanley's bullish call on the group. the analyst will join us kelly, first over to you >> major aver raages are hitting their lowest levels. bob has a look at the stocks making the biggest move today. bob, let's start with you. >> we're in a 40-point trading range. we're about to break out on the upside

i'm calling today to ask you for your thoughts about the general motors nikola deal that puts 2, 3 billion value on g m's battery and fuel cell technology when you add this to the fuel cell facility that gm is building in partnership with honda, is it time to start thinking about gm as something of a technology company rather than as strictly car and truck company and what might this imply for its future valuation >> look, i think the stock is cheap. we have to get through the used car inventory and gm will do okay i'm not against selling it the nikola thing is a side show but the stock itself, i'm getting very positive about the autos. why? because people don't want to take public transportation and you're not supposed to carpool that's giving a check to the auto companies that's how i feel about it don't forget, tesla is a technology company wall street was worried going into the debate, right none of the worries came true so the market laughed it up somebody liked this debate on "mad money" tonight a world where business can be conducted from almost anywhere, how is docusign doing harva

on tuesday nikola received what sure looked like the ultimate confidence we learned that they would be partnering with general motorstheir new pickup truck. in response, nikola stock pole vaulted from 35 to 50 in a single session then yesterday morning a short selling research firm published a devastating critique and the stock has been tanking since to the point where it's now giving back the gm gains and then some. didn't help management's response seemed ill advised. i've been walking through this step by step you must know from the top the research firm, people behind it are shorting the stock they're trashing not illegal but you need to know that because that's important for the people who own nikola. first was the gm deal. not only did they partner with nikola until the upcoming electric pickup truck, which i call the honey badger because it's an infamous animal because the honey badger doesn't care and taking an 11% steak in the business they are getting that steak in exchange for in kind services, not cash nikola will use gms batteries in electric trucks and fuel cells according to general motors, the deal i

will supply its battery technology and fuel cells to nikola nikola will have its badger pickup truck built by gm here are the ceos of general motors morning >> in addition to all the technology we're bringing in the value from an ultraand hydrotechnology perspective we're doing the manufacturing and validation and engineering all of that comes together and for the badger and also for the fuel cell technology for the nikola products and class seven and eight truck business so this is a huge growth opportunity for us >> we get access to their entire supply chain, the team that built some of the best programs in the world the silverados and hummers, they have the best of the best and building our trucks out of their plant and that was the idea to save nikola billions of dollars, while still being able to grow with something that doesn't conflict with our dna. >> both company stocks over the last three months here, keep in mind nikola will save $4 billion. it comes down to this for general motors, the battery technology and the batteries that are going to be built in northeast ohio, and the architecture that's around that, what they'r

the diligence we did >> so as you take a look at shares of general motors, keep in mind that it is scheduled to take an 11% stake in nikolation when this deal was arranged starting on september 8th if it was to close by today. i've been told by people don't be surprised if general motors takes a bigger stake in nikola given the fact that as you take a look at shares of nikola, the valuation is lower now than what it was just a few weeks ago. i think it's down anywhere between 50% and 60% depending on how you measure it there is a change in the valuation of nikola, but they say we are making progress on the fuel cell semi truck being built in europe. the first five prototypes are expected to be coming in the next few weeks girsky said i have driven in the fuel cell semi it's a real vehicle. i know there's a video of it rolling down the hill, he said, but the vehicle that i was in is a real vehicle we have a company that according to mark russell, the ceo of nikola, he says look, the valuation, it's still an extremely valuable company, butl company. one last note, carl, the pick jum truck, nikola put out a strategy statemen

i might sound boring but boring can be good. >>> general motors announcing it's taemg up with nikola. phil has the details for us. >> you miergt sght say a week a was up around $500 a share it's fallen below the 50-day moving average it's not now it's down at 346 it's market cap down about $143 billion. there's the other news that people are digesting when it comes to electric vehicles it's the partnership or getting together, if you will between general motors this is a deal that they struck over the weekend it gets more size an scale for its ev platform. nikola gains access and yes, it has vast expertise when it comes to developing electric vehicles. >> we do not want to make our own truck lines. this is what gm is so good at. it's going to be built at their plant. we get access to their entire supply chain the team that's built the best programs in the world. that's how much it expects the benefit because of this deal it expects to save approximately $4 billion since it won't have to spend as much developing battery technology, getting production up to speed and investing billions

ashley: welcome back, nikola shares are down today but saw a huge spike yesterday announcing its partnership with general motors. a great time to bring in trevor milton the founder and executive chairman of nikola and as we just learned on the forbes list of richest people. congrats on that. but i want to talk on gm taken 11% stake in your company, how significant is that, what does it do for you? >> it's a huge deal for us at nikola. we analyzed all around the world and try to figure out which would be the best in gm was the best one. by utilizing all their purchasing power in the battery cost that they get on the battery sales were talking over $4 billion savings just on other programs like an almost $10 billion savings in total across the board. this was a huge huge deal, they're going to manufacture nikola, they will bring it to production and that's billions in savings alone and is a perfect fit gm and nikola is a great story. ashley: are you on track as far as your truck being out there. you mentioned the badger due out at the end of 2022, is everything on schedule? >> absolutely gm is going to help us hi

new nikola stake holder general motors also coming out swinging against hindenburg's allegations sayinge, fully confident in its new electric partner. gm for its part is moving up .4%. in the green at least for general motors. >>> ev og tesla no stranger to short seller battles but the electric behemoth making waves for other reasons at this hour. gerri willis tracking all of the action in today's fox business brief. hi, gerri. gerri: hey, liz. that's right. elon musk looking to drive excitement, get it, drive excitement, ahead of tesla's big battery day. he's promising many exciting announcements via twitter. deutsche bank more than doubling its price target on tesla to $325 a share even before the tesla's chief's tweet of high hopes on september 22nd and investors swatting chewy on the nose this hour despite a double beat in q2 and surging customer numbers, shares falling after the online pets products retailer warned of higher second half costs due to the covid pandemic. >>> and the [ inaudible ] solid results for the latest quarter and upbeat guidance, not enough to save the securit

this happens separately while we are looking at general motors and wondering will the gm deal close in gm is expected to take an 11% stake in nikolaed date september 30th general motors has not said whether or not it will close by the 30th a statement saying our transaction with nikola has not closed we are continuing our discussions with nikola and will provide further updates when appropriate or required. we'll be watching this and all of this raises questions about former gm vice chair, steve girsky, putting together the nikola spec ipo and guiding the company through its agreement. we have not heard any comment from the company regarding the status of its discussions with general motors, but no doubt, david, this is going to be one of those stocks that people are going to be focused on to see does gm go through with the deal do they change the terms, perhaps make it a little bit more favorable from general motors to stick with nikola, a lot of questions there >> some of so of the reporting around the due diligence gm did suggests that gm found their technology, gm's technology was in some cases superior but nikola had access t

apparently general motors is rethinking its deals with the electric truck maker as the founder of nikola steps down for misleading investors. general motors is extending the negotiation period for its investment. the company's stock down better than 7% yesterday. nikola has had a tough time including serious allegations against the ceo. a claim one of its trucks in motion was made possible because the truck was rolling downhill not under its own power. on the flip side companies that are doing well include palantir, asana and velodyne. asana and velodyne on the stock exchange. poshmark and mcafee have started paperwork. snowflake, jay frog and sumo logic, funny names, but they raised a ton of money for their companies and made many employees very rich in the process. today is the last day of the financial quarter. tomorrow is october 1st and that means that's when the government guarantees for airlines run out and we expect massive layoffs tomorrow particularly with united and american. we could look at about 40,000 job losses alone. while google's parent company alphabet wants its emplo

throw in a yet-to-be signed deal between general motors and nikola and investors have a lot to digest elon musk's tesla continues to accuse rival nikola and its founder, trevor milton, of stealing the design for its electric truck from a croatian car company. that claim came in response to a nikola lawsuit that alleges tesla stole its electric truck design for the tesla semi, unveiled in 2017. confused yet? earlier this month, milton stepped down as executive chairman after claims his company is a fraud and that milton was promoting technology that he knew didn't work. something he has vehemently denied but the damage has been done. analysts now wonder whether gm will get cold feet about a partnership with nikola. calls for the automaker to receive an 11% stake in nikola. when it was announced, that deal was worth around $2 billion. gm's potential stake is now worth a lot less, less than half of that initial value, as nikola's stock has fallen down again 6% today. by the way, gm not commenting on whether it may scrap the deal or perhaps try and renegotiate the terms, saying only that

nikola of being an intricate fraud. i don't even know where to go with this, jeff mills. obviously general motorss involved because of the 11% stake it now has in nikola what's your take >> yeah, i don't really know where to go with it either, quite frankly. at this juncture it's a he said/she said sort of situation. i try to look to the market for some wisdom. you brought up gm. i thought the trading in gm and nikola was very interesting today in the sense that gm was up a percent and nikola was down about 14 or 15%. i would have expected given that $2 billion stake gm has in nikola, the two stocks would have traded more similarly to one another. perhaps it's a situation where the more steady hand is in gm. they're taking a longer term view about how this is likely to turn out, versus nikola where there's obviously more speculation in the stock i just thought that's interesting to point occupy. i don't know exactly what to make of it but the divergence was there. you had that big blowoff top in nikola, traded up to 80. it was back down to 30 and it actually had some support there a couple of tim

less now than it was when the deal was struck part of the attractiveness, if you will, of nikola for general motorsds to the question when they ultimately strike the deal does gm have a stake in nikola. one of the questions people are waiting for an answer to. >> big question. thanks i was going to mention on deliver alf ark, je-- alpha he's a board meeting so he can't address allegations but broadly asked whether it influences his impact investing and he pinned the thinking right now on short-te short-termism by what he called the media and short sellers when it comes to nikola a ton of excitement around the name put it in the category as harvest back yesterday going public, going to grow tomatoes in kentucky, around his esg think thinking. >> if you're blaming it on thunderstorm termism you can't on evs because it's moved tesla in the opposite direction in the short-term i think fair to say a lot of stuff in the market at the moment particularly if evs is being exaggerated. clearly two stocks moving opposite directions not like the broad point overall. >> hey, guys. >> go for it, josh. >> here is

a lot of questions coming out about this not just the story of nikola but general motors and the due diligence they had done on nikola and the stake they have taken in the company >> right it seems like separate stories doesn't it either the batteries in the trouks work but then again it may all be -- he's already gone >> the larger story is diligence. the story about spaks and the disclosure and how it works to begin with second is general motors and whether they made their due diligence. >> you hire people to do real background research about who you are about to get into business with. i'm a big fan of mary barra but she came on our air. >> both of those women came forward after gm took the stake. i've seen tweets both of them came forward after. anything from your past is going to come out and catch up with you. who knows what happens i have read one of the women's account and it was pretty graphic. >> effectively a startup in history to find out where they are and what are their stories and if you want to do business with them. i'm a huge fan of mary barra 1 she came on to talk a

and remember yesterday the ceo said look, we did appropriate diligence, and general motors is taking an 11% stake in nikolao you. >> thank you, we have not heard from truck driver milton recently take a look at shares of carnival getting slammed today down 7%. it is the worst performer and dranking down the other cruise lines carnival also hoping to raise the offer through a stock offering stay with us >>> take a look at some of the vaccines today a report looking at the impact of covid on the ceo of the bila gates foundation joining us this morning. this report is really stark. showing the losses and progress because of the pandemic on everything from health to economies to nutrition and education. one metric that i thought was really stark was vaccine coverage you note that we basically lost 25 years of progress in the span of 25 weeks. how long is it going to take us to regain this ground? >> you're absolutely right it's been devastating. we have seen vaccination rates drop from 84% to around 70% which was the level of 25 years ago. the good news is we can potentially turn it around pretty quickly if yo

and someone sthed aid th a good deal for both companies and that's what we're seeing for nikola and general motors. which is the last time gm was up 8% it is up 8% after this deal announced it's going to take 11% stake in nikola. benefiting by the tune of about $4 billion thael have the electric bickup truck built by gm. it gets access to their expertise. the chairman talking to us on squawk this morning said this is another example of what investors want to see. >> i think the world is rewarding those that are changing the world for the better they're kind of tired of some of the old legacy philosophy where it's like okay, all we do is build cars and the more cars we build the more we grow >> well, they're thinking it's going to be different now with general motors take a look at shares of tesla down more than 19% stat of the day. tesla is now on pace for its worst single day since 2012. guys, you got to go back eight years to see another day where tesla was down more than 18.5% right now down 19.5% >> mike -- excuse me, sorry, phil clearly it's been so hard to pinpoint any of the factors that ha

nikola had in previous statements said they have that technology is that right? >> the question becomes what type of technology are they talking about. and general motors, when they announced this agreement with nikola talked about the hydrotech capabilities and technology that they plan to supply to nikola so now we're getting into an area what specifically, hydrogen fuel cells is what they said there may be other technology within that as well. >> phil, thank you phil le beau putting in double duty tonight we should know that hindenburg has a short position in nikola last we know tim seymour, why is gm sticking with this? >> well, again, it depending on who has what technology and gm is very pleased with their own technology and braeratteries and this validates like they're supplying the technology here. it is not just gm. think about bosh who is an investor in the company over multiple years, a major supplier to the company think of cnh industrial in italy. so it is just very interesting leaving aside the sell side analyst debate going on, especially on the network today, i think the more important thing and steve gurski is a ex vice president of gm

the truck has no engine in an article from september 10 hidden berg research said nikola managed to convince general motors to take a $2000000000.00 stake in the start up by lying about proprietary technology it did not actually own now it's up to one of its former talents to deal with the fall out stephen a former vice president of g.m. is taking over from trevor milton he has his work cut out for. since the report's release until militants monday resignation shares have declined. rebuilding trust in investors is going to be difficult and realizing nicholas dream of remaking the trucking industry a distant possibility. to some of the other global business stories making news. tick-tock has avoided a ban in the united states for now at least after u.s. president donald trump appeared to show support for a proposed deal with the company partner with american firms oracle and wal-mart's washington says the plans mean no american daisho would end up in the possession of the chinese government. general electric has a nice it will no longer build coal fired power plants she said it will continue to maintain exi

motors. you have canoe nikola, which i guess is tesla junior those will be the battlegrounds and these stocks are wild. >> mike, you get the last word and i'm going to take a break. >> i will continue to say tesla is kind of its own thing and the fact they punted it means we can talk about other stuff it's not back to where it was august 11th. keep that in mind how much it was up >> good stuff. thanks for being here. we'll take a quick break we'll come back. 'r have bullish call out on dieywee back in just two minutes l not covered by my health insurance. and this is the aflac duck who helped me cover it. aflac. these are all the cab rides to my physical therapy. and aflac paid me directly to help. aflac. what he said. and this unexpected bill is from... the two-thousand-dollar specialist. thanks. aflac. when you're sick or injured, aflac is there. we can help with expenses health insurance doesn't cover. get to know us at (aflac!) dot com. doesn♪ cover. get to know us at ♪ you can go your own way ♪ go your own way your wireless. your rules. only xfinity mobile lets you choose shared data, un

. >>> let's move on, motor company nikola, a bright spot today in a sea of red. ew partnership with general motors. susan li. give us the details. susan: up as much as 45% this morning in the premarket. general motors was up as much as 9%. still holding on to their gains a little bit. general motors paying two billion dollars for the 11% stake in nikola, which is the electric truck maker. nikola has never sold or delivered a electric truck but they do have $10 billion worth of deposits on future orders. gm stepping up with cash but also expertise in building, nikola's marquee, high troh again powered badger that will be released in 2022. electric trucks are the future. big growth opportunity. nikola can scale more quickly. tesla sass, nios, the workhorses of this world they are pretty concerned i'm sure. ashley: tesla took a number of shots this morning. now bill gates taking a jab voicing concerns over some of tesla's new products. what is that all about? susan: tesla is down 15% at the session lows. we have a long-running dispute between the two billionaire migh

what's the 2nd electric deal for general motors less than a week this time a $2000000000.00 agreement with the start of nikola to produce its electric pickup and supply batteries shares both companies put the pedal to the metal but what is nicola here's a look at the other company named after a certain mr tesla for. this is it nicolai headquarters this so proclaim disruptor of the transportation industry greets visitors with a variety of sleek and shiny vehicles and the entry hole so-called big rig trucks away from their off road week olds it's all there it's show and tell what could be all rather what will be in the near future says this man we're an energy technology company that happens to make really cool big vehicles this is true of a milton the founder of nikola 38 years old and worth an estimated $4500000000.00. his 5th company open considers himself a gifted man equipped with plenty of ego and smarts of course primarily he just got lucky he says we 1st started this it was it was very risky you know the odds of starting a company and succeeding are normally always against you and the odds of starting a

general motors apparently rethinking its deal with the electric truck company called nikola. this comes as the ceo and the founder of nikola steps down accused by short sellers of making false statements and misleading investors. general motors is extending the negotiation period for its investment often the first step in stepping away. the company's stock was down better than 7% yesterday. now we asked our artists to show us a picture of the nikola truck. i don't know why he did it exactly like that but this has been an embarrassment for the company. the company at one point accused by the short seller of videoing the truck in motion but actually the short seller says pushing the truck downhill. it was just in neutral the whole way. there have been a number of allegations very serious allegations against that ceo as well. on the flip side companies that are doing well include palantir and velodyne and asana. they will start trading stock today. all bay area companies. asana on the new york stock exchange. poshmark and mcafee have started the paperwork to go public. this come