and let's bring in now phil i know you've been reaching out to nikola. don't think you've reached mr. milton but the stock right now is giving back all of what it gained today as far as noon news, of the sec investigating into nikola, don't know what if anything they might find of course there's a preassumption of innocence but when you read that nikola admitted we faked the video, the truck did roll down the hill, the parts worked but the whole thing didn't work together, how should that be reacted to in the automative community. >> two ways to look at it, brian, some people will look and say, well, come on, when you see the automakers reveal a new vehicle at a auto show or they talk about a model coming out somewhere down the road, you know, a lot of times those are not fully functioning vehicles and that's well-known in the auto industry. the difference is when you look at the video shot in 2017 the impression that was given to the person who is looking at this, is that it is a functioning hydrogen fuel cell semi truck. no other way to get around that

that nikola was making.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 said their piece for now. the messaging has been that they are now focused on executing. largely positive, because past,less of nikola's what technology they are actually providing to any relationship or any project. at the end of the day, they have clearly skated -- clearly stated goals for production on semi trucks and this pickup truck it general motors. there is optimism and potential upside in the stock as long as they are able to execute. that is what the company says they are focused on. caroline: many still betting that this has been a wild ride. 35 is where it cl

the sec is also looking into these broad claims surrounding nikola neck nikola reached out proactivelysec and said we want you to look into these claims. the claims said this is an intricate fraud that nikola is perpetrating here and that basically investors are on the hook what you heard from nikola on friday and monday was a refuting of those claims from hindenburg. today hindenburg said we view nikola's response as a tacit admission of securities fraud. that tacit admission because one of the claims was that a semitruck that was filmed by nikola back in 2017 was not propelling itself. it was being rolled down a hill. it was in motion it was not an actual driving vehicle. i'm showing you general motors because general motors said we did appropriate diligence when it comes to looking into nikola before striking the deal nikola will have its badger electric pickup truck built by general motors we have 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

not rikola but nikola.shares plunging amid a dispute over fraud allegations, i'm breaking down the action and school is back in session so you know what that means finally with the calls, we'll do homework and all your calls, rapid fire in tonight's edition of the lightning round so stay with cramer. ♪ for skin as alive as you are... don't settle for silver ♪ gold bond champion your skin now you can trade stocks and etfs for any amount you choose instead of buying by the share. all with no commissions. stocks by the slice from fidelity. get your slice today. every curve, every innovation, every feeling. a product of mastery. lease the 2020 es 350 for $359 a month for 36 months. experience amazing at your lexus dealer. >>> i hate to say i told you so. that's a lie i love it. great feeling. you know what? i told you to stay away from nikola corporation, the electric slash fuel cell powered truck play with the stock spinning out at eight wild ride. a few months ago, we started talking about this nikola right b

there was a $2 billion investment in nikola and both stocks floored it alleging fraud against nikolathe company has since dismissed the allegations but they have not been shaken off just yet tony is grabbing his toolkit and opening up the hooed on gm so, tony, what's your take, what's your trade? >> there was a lot of news this week that drove volatility in both gm and nikola i want to look past the noise here and i want to take a look at gm's focus on their future. and perhaps harvest some of it using options. if we start by looking at the gm chart here, the stock has really underperformed over the years. but it recently broke out above that $30 resistance level on the news of this deal. it recently obviously retreated back on the short seller piece back to that $30 support level but that's actually the attractiveness that i see for a long opportunity here, the fact that $30 has held. now, whether or not nikola is a sham or not, i'm not here to -- i don't really have any insights into that. but i don't really see that as in the long term negative for gms as a business. what i really

so maybe nikola is in better hands. and i read an analyst note that nikola's bid is the hydrogen business because it is outsourcing the auto manufacturing it is not a auto vehicle company, it is a hydrogen company. they're bundling the ervice, the auto plus the hydrogen as long as that piece is still in tact, maybe you still have a company. >> yeah. and i would think so, right. and so to me, when i look at this, this is really classic they probably went public a little too early but a classic kind of outlandish brash founder and i have no idea what actually happened but you get personalities that to be a founder and to come up with a new idea and to get it to that point, sometimes you move fast and break things as they say in silicon valley that doesn't work well in the public market. so you have this collision and chaos might represent an opportunity. because if they actually do have a product and they do have something that gm and bosh really feel good about, and now i've got some adults in the room, let's say, that i

and nikola was down about 14 or 15%. 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 times. we're back down to that 30 level. i would look for that as near term support >> i mean, the response on the part of the company may seem very convincing to average investors, tim i mean, we've hired a law firm, we're engaging with the sec. i worked all night on this rebuttal report which i can't release because of the lawyers now. it seems convincing, at least. >> i give trevor milton credit for standing

this week was a huge one for gm motors and up start nikola gm announced a $2 billion investment in nikolan monday both stocks floored it before being brought to a halt by hindenburg which claimed that gm was essentially dubbed, alleged fraud by nikola. the company has dismissed the allegations but neither nikola nor gm have shaken it off just yet. tony is opening the hood on gm tony, what's your take, what's your trade >> so as you said, there was a lot of news that drove volatility in both gm and nikola this week. i want to look past the noise here and take a look at gm's focus on their investment for the future and take advantage of this elevated volatility and perhaps harvest some of it using options. we start by looking at the gm chart here the stock itself has reall underperformed the market for multiple years, but it recently broke out above that $30 resistance level on the news of this deal. it recently retreated back on the short seller piece back to that $30 support level that's actually the attractive that i see for a long opportunity here, the fact that $30 has held whether or

nikola badger will be engineered and manufactured by gm gm is getting 11% ownership of nikola and the 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 change gm? how does this change the sort of profile, if you will, of nikola. evs have been a lower margin

then gm got quite a shock after teaming up with nikola >> i really like this particular stock. >> but headlines aside, tony zhang thinks this old school auto maker has a better grasp of the future than many give it credit for he'll show you how to plug in with the right circuit breaker. >>> and in this market, elmer fudd might have said, be very quiet, i'm hunting yield but there's always a pesky welcome ba wab wabbit to beware of. >>> the home construction trade on fire this year with both the xhb and itb up double digits the rally comes as mortgage rates hit new lows and home bound americans tackle home improvement projects carter, what are the charts telling you? >> well, the question is at some point is a lot or everything priced in. it's been a great area obviously we know the story that's been in the news about refis and home improvement and we know the earnings have been great. but at some point sometimes an area of the market is full, is rich i think that's the premise here. let's look at a few charts the first is a two-panel all you're looking at is the home construction etf

gm will supply its battery technology and fuel cells to nikola nikola will have its badger pickup truck, chairman of nikola talking about the deal this 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

they are standing beside nikola.d any further questions regarding any claims that nikola may have made or the chairman may have made those should be referred to nikola the bottom line is this. you have gm ceo less than a week after gm made a big deal with nikola coming out and saying we heard the allegations and we're standing by nikola we did due diligence on this company. sfw ph >> phil, i don't know what nikola was doing before this report can we show the intraday >> it was negative they point out a point by point response one reason it have negative is they koconfirmed there's video f one of their trucks and they say it wasn't self powered it was being rolled down a hill. nikola said that was not a truck that was self power but it was not part of the sales pitch. they confirmed with one of the complaints from hiddenberg research but say that's not the truck we're building and we never said it was self-powered >> you surprise that mary barra came out today and said we have the -- >> i'm not i talked with some peop

nikola or tesla at these levels? 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 tesla's battery day was an enormous amount of high expectation and delivery and some discussion of the distance traveled and essentially the price per mega watt and what this meant for the next rerating cycle and ultimately whether they could deliver the model 3 profitably there's an argument that the profitability there has not been sustainable long-term. the story of nikola and gm is one where you had gm saying this validates our fuel cell and battery technology that's something the market is still waiting to determine whether they want to apply nmore valuation to gm's other business i think bosh and the italian partner are also players in this that's how i look at this. >> a very, very interesting story developing right now with nikola and gm. we'll see if the deal closes in any different shape than we alre

nikola.we will work to close the transaction that we announced nearly two weeks ago to seize the growth opportunities in broader markets with our fuel and battery systems and to build the badger. that is the electric truck they will build with nikola general motors is due to receive 11% stake in nikola when 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 st

we are gm and our technology is better than nikola's.using gm's battery pack, which is for their future electric view -- vehicles. investors bought into nikola thinking they had great technology. instead they are using gm's. gm is up today. not getting quite the bump nikola is, but investors are taking a look at this. when these companies, a hot startup and an old company, they end up using gm's technology. classf these fuel-cell seven trucks cell, gm gets into a market where they are not currently. and if the pickup truck sales, they just get more volume for the plants they will use to make their own vehicles and they get some royalties from that. a lot of possible upside from gm. and they are not spending money to do it. vonnie: can investors say gm did a huge amount of due diligence and all of the signs that might be alarm bells such as the founder and so on, the tesla that is all fine because gm is investing and it is the real deal? david: that is a big question. when we spoke to be ceo this morning, people were asking what technolog

gm and nikola. of onethink at the end of the shows last week when you said what are you going to watch , i said tesla. i feel pretty vindicated. there was a surge in a lot of stuff. nutsd absolutely gone since the lows in march. housing speculation, economic recovery. it has also sold off hard since the end of august. look, this is just an example, now giving some of it back. one caroline, as hyde would call the market. you missed that conversation earlier. .old was higher on the day the yen and the dollar also gaining on the day. larger against the basket of currencies. interesting move in the treasury markets. a lot of people bidding those up. was down at one point to 3.8. caroline: we saw a little bit of risky version -- risk aversion in europe. a record lowching for gilt. some brexit news. we could see international law broken in the u.k.. joe: you guys are still dealing with that? i can't believe it. caroline: we like a protected -- protracted issue. joe: big picture, we had this incredible rom

if he even wants to say anything about nikola it has to be cleared by nikola's legal counsel. >> philu there still is gm is making things for them i know that gm, you can say they got tied in with someone bad but gm is doing something that is good for gm. right? doing something. >> i think gm, i think gm's perspective on this is, look, 11% stake in this company that will be paying us to build their electric pickup truck the badger electric pickup truck and that is going to be built, they haven't announced this yet but most likely at the plant in detroit which adds size and scale, which is what they want for their ev platform for the battery platform they want size and scale they just don't want to have gm vehicles they're working with a number of automakers and the hydrotech element of this making hiydroge fuel cells that they're developing in europe that's what gm is supplying, as well gm looks at this and they're committed to staying in this relationship with nikola they look at this as there's upside here. what downside is there if nikola were to fall apart completely, what is the

nikola founder made fraudulent statements about the technology and capabilities earlier today, citronh 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 remundz me, elon musk likes twitter and trevor milton likes instagram. >> do you think there is anything to the idea that he is trying to say, no, i reached out to the sec as opposed to they're looking at us. >> this is all about optics. who hung up first? this is going to be howit play out in the markets right now the only interesting part about the whole discussion is we're talki

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

is going to be owned by nikola? >> directly by nikola.e said the world is changing and we do not think the existing way of doing things is the right way. tesla does everything themselves. we do not do everything. we just do some of it. we think direct to consumer for the sales is important for us. we have that right. we are in charge of that. we are going to partner with someone on warranty. that may be p.m. -- maybe gm, that maybe someone else. >> what about states like texas where you cannot do direct to consumer? that is a big truck market. >> it is, but there are a lot of ways to handle that. they have figured that out -- tesla has figured a lot of those out. some of them are distributive outside and brought in. we believe texas and these other states are going to allow you -- if they are doing service with them, we believe they are going to allow you to work with them. in the next year and a half, we will have those figured out. ♪ ♪ >> in sydney, we are counting down to asia's major market opens. haidi: good evening from bloomberg's

>> the latest is those analysts who looked at nikola and covered nikola are saying, wait, this is notomplete loss with this company. nonetheless it is a major setback given the fact that trevor milton says he feels like it's better for him to step aside from the company in announcing his resignation from the company, he said the focus should be on the company and its world-changing mission and not me i intend to defend myself against false allegations leveled against me by outside detractors behi hindenburg said this is a fraud, what's leveled by nikola they have no property or evidence to fall back on we think the company's key asset was the founder's ability to raise money through hype and outright lies. yes, they believe there was outright lies by nikola. general motors is standing by its agreement with nikola. remember, 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 l

this is their play in terms of nikola from a hydrogen fuel perspective.having a former executive of gm on the board running the board taking trevor's spot is a positive. that's a big part of the story going forward because right now it's a fork in the road situation given what we're seeing in terms of the shorts and worries now that obviously get gasoline poured on it given what we see this morning >> right dan, while i have you, and as we've been speaking, president trump's been making some headlines. one of the headlines, trump saying oracle and walmart will have total control of tiktok or we won't approve the transaction. they won't have anything to do with the education proposal. we just won't make the deal, he says what do you make of this transaction? do you think it's actually going to happen? i should also tell you literally as we were speaking, oracle putting out its own press release reiterating that once this company becomes, quote, tiktok global, the shares that bytedance's investors historically had in the company will effectively get distrib

ed: sources tell us that gm did know quite a lot, especially on nikola's technology.igence basically unveiled that the general motors fuel cell battery technology was actually superior to nikola. but they knew that. nikola displayed an ability to raise funds. working and do have two fuel cell prototypes. the idea was that general motors would leverage 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 leadin

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 within the auto industry it's unrealistic to think that all of these startups and every single auto maker is going to come up with their own platform. you're going to start to see them coalesce around large platforms like this. you've got tesla and it's going to continue to sell its technology then you've got whatever toyota ultimately decides to do that's what you're ultimately going to see within the auto industry >> gm's surge comes as shares of tesla extend last week not that long ago we were com

why nikola said what they said in the past.irst 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 this mary barrio speaking at a news conference with a number of automakers were presenting they addressed this saying they did do their due diligence when it comes to nikola and the deal does validate general motors

nikola denied allegations.ou can see general motor shares 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

. >> we have news on nikola. >> take a look at shares of nikola which have been under pressure most ofued into the closing bell there are multiple reports that department of justice has qurd whether nikola about some of the claims coming from the research report remember, that report which came out last week essentially called nikola an intricate fraud and they outlined 43 examples of what they consider examples where nikola was not being truthful with investors and with the public nikola had a response to that. it kaum out yesterday refuting ten of those points. and we have not heard yet from nikola on this latest bullet point here which is the department of justice is looking into claims of nikola misleading investors. remember, the sec is reportedly also looking into those claims of fraud surrounding nikola f we hear from them, we'll let you know immediately, back to you. >> phil lebeau, thank you. >> i was just going to clarify the doj is looking into the allegations of fraud against nikola and the sec is looking into, what, nikola's allegations against the short seller? what is th

now let's take a look to, i say nikola, but the ceo called it nikola.y but surged yesterday on the news that gm is taking a 11% stake in the company worth two billion dollars. this is what trevor milton said about that on the show in the last hour. >> a huge deal for us at nikola. we analyzed top oems around the world. trying to figure out what would be the best for us. gm was hands down the best one. using purchasing power, batteries, costs they get own battery sales, talking about $4 billion savings on programs. looking at $10 billion savings in total across the board. ashley: all right. nikola stock, apparently pulling back a little bit after yesterday's gains, as you can see, down 7 1/2% today. meanwhile on the other side there is tesla. the former vice president of the company also joined us last hour. he is not too concerned about that gm deal and nikola. roll that tape. >> i don't see that posing a huge competition to tesla. tesla has got the preeminent technology and i think that is what we need to recognize here. that this is a technology race.

shares of nikola, by the way, falling as much as 30% today.that founder and chief executive trevor milton resigned following those accusations of fraud and nepotism. those charges coming from hindenburg research a couple of weeks ago that claimed to have enough evidence to show that nikola and milton made false claims about the company's proprietary technology to form partnerships with large automakers, gm as with we know just recently announced it was taking an 11% stake in the company. and in an interview with you last december, trevor milton said nikola is a popular target for partnerships. take a listen. liz: give me a sense of what other companies have expressed interest in this. >> yeah. we have 800 trucks rolling out with anheuser-busch, the first time they've ever done an order that large with anybody in history. liz: wow. >> we just delivered the first crate of bill with an -- anheuser-busch a few weeks ago in st. louis, it was incredible. that was our first load. but there's customers just like anheuser-busch around the country, u.s.

comments on the record from the chairman of nikola as well as the ceo of nikola as you mentioned, theoing to be closed today. that was the target date, september 30th they're in discussions and they still may finalize a deal with general motors i asked given everything that's happened involving nikola and the allegations that this was a house of lies, whether or not he believes that nikola did enough due diligence and represented with the company is about to general motors he said yeah, we did here's what he had to say. >> the company's been public for four months. so we're comfortable with 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 nikola. that was the expectation 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

shares of nikola plunging on news of his departure.less but not too shaby, brian >> now to washington and the new fight for power over filling the empty seat of ruth bader ginsburg let's get to where we stand now in the election battle >> all eyes are now on the senate as republicans are defending 23 seats during the november election. that is almost double the number the democrats are, even before the passing of justice ginsburg, the number of political adds is up 170% compared to last election cycle the top state $for spending, we got current data that shows the money is flowing into north carolina, minnesota, maine and montana. 100 million in spending and states where republicans are trailing behind by five percentage points collins is one of only two republicans so far who has said the next president is the one that should choose the next supreme court justice. the new survey found 57% of likely voters said the supreme court would be important to their decision seeing the supreme court is more galvanizing for republicans than democ

of he's not part of the future of nikola.t does happen the new chairman, steve girsky engineers the nikola spec-ipo earlier in the year. the hydrogen fuel cell semi, that is the one technology and the one area of focus that many on wall street believe that they can still make a play for and do well in. the gm deal, in order of supplying hydrogen fuel cells as well as building an electric pickup truck, that deal still stands in fact, take a look at shares of general motors, it is scheduled to take an 11% stake in nikola and the company said today, look, we plan on closing that deal. we are not changing our minds on that as fnikola, rbc cutting the pric target to $29. when you read the analyst notes, guys, the one thing that stands out is they all say you have to get past the milton saga to then focus on what might be possible in the future especially when it comes to the hydrogen fuel cell stemmie semis. thank you very much. >> we're following this huge selloff on wall street you can watch or listen on the go on the cnbc app i

difficult to sell a stock when you think you found the next tesla the next tesla could have been nikolarning you away from for months some of you may still believe this when you see a bunch of bright red flags, you have to sell and sell quickly even if you still have conviction. ever since nikola started trading, there was too much hype and not enough substance if you didn't listen to the warnings from me, you slammed head first into a situation with nathan anderson founder of hindenburg research and the air ship that crashed and burned anderson nailed this because he thoroughly distrusted the executive chairman trever milton this guy is incredibly vocal about the coming of nikola revolution how they were going to change the game with hydrogen fuel cell power trucks this year nikola americaed with a special purpose acquisition company and moved the stock from $11 to a closing high of 80. while hindenburg didn't get out at the top, it went with the stock trading at 38 and now it's 28 they highlighted moments of fraud and alleged, some of them have already been independently confirmed and

calls for the automaker to receive an 11% stake in nikola.ed, 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 the deal has yet to be closed. stay tuned. liz: yeah, it's called checking out before you make the big purchase, right? ashley, thank you very much. ashley webster. >>> check the dow. we are down 57 points. low of the session, a loss of 245. so that's not a bad picture. at least at the moment. s&p down 8. closing bell is going to ring in about 27 minutes. bankruptcy looking a lot like the word of the year but up next, billionaire investor marc lasry, is he starting to look like a lender of last resort to big companies desperate for cash? he's here next with the biggest opportunities he sees to make money in the markets. that and more coming up on "the claman countdown." ♪ ♪ ♪ ♪ ♪ ♪ ♪ smooth d

with nikola and we'll provide further updates when appropriate or required. by the way, we reached out to nick la, they say they're working with gm on a deal just to be clear guys, that is the target date, september 30th. but it is not a hard and fast deadline in other words, they technically don't have -- they have until december 3rd to close this deal. but the both sides are talking at this point and i think everyone is wondering does gm alter the terms of the deal in some fashion or does gm walk away completely? still more questions than answers regarding what will happen with that gm-nikola proposed partnership so, phil, it sounds like gm still has the flexibility to walk away if they want >> yes, absolutely one assumes they would do that. >> that they would walk away that remains to be seen. remember, gm is not putting any money up here. the even if they walk away, they don't lose anything. there is going to be a hit to the reputation and questions about not doing enough due diligence about the background of nikola, but if they say, look, get rid of trev

susan: according to nikola. stuart: nikola said it is not true, the stock is down 20%. services secretary, but first speaker pelosi threatens impeachment two delay the supreme court nomination, take a look at this again. >> we have our options in our arrow in the quiver that i'm not about to discuss right now. stuart: we are all over the threat of intimidation of impeachment, of packing the court in the senate, outrageous, the third hour of ernie roles on ♪ well, saving on homeowners insurance with geico's help was pretty fun too. ahhhh, it's a tiny dancer. they left a ton of stuff up here. welp, enjoy your house. nope. no thank you. geico could help you save on homeowners and renters insurance. ♪ here? geico could help you save on homeowners nah. ♪ here? nope. ♪ here. ♪ when the middle of nowhere... is somewhere. the all-new chevy trailblazer. ♪ ♪ you can go your own way ♪ go your own way your wireless. your rules. only xfinity mobile lets you choose shared data, unlimited or a mix of each. and switch anytime so you only pay for the data you need. switch and save up to

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 harvest of the environmental credits that nikola has around this line of production.here were a lot of good, smart financial details. ideailds around the that trevor moment is a show man and snake oil salesman who sold gm a bill of goods. the deal came to gm through steve gursky. is, did thequestion ceo relied too much on judgment in this? she has said publicly the lawyershad an armada of and analysts look at this before they did the transaction. which they may have. ,t still raises the question of why did they not think about the reputation of what the exposed themselves to? emily: let's talk about that reputational risk. gm emerge from this unscathed even if they did not know? it certainly does not look good. >> mary is a very good, talented ceo. this is not going to bring the company down. scenario, they clean of the mistakes they made around this, they learned their lesson, and they move on. doje is an fcc and investigation looking into the circumstances surrounding a bunch of claims from nikola. gm transaction will follow under the purview. it is likely gm's boar

i hope, as tim said, this is common place at some point >> we're still awaiting a response from nikola founder trevor milton to a scathing short seller report that sent shares tumbling 11 today. it goes on to say that gm, which just announced an 11% investment in nikola didn't do its due diligence before making the deal, gm telling cnbc we are fully confident in the value we will create by working together. nikola did fire back today to call the report a hit job, saying cowards run, leaders stay and fight for integrity. troll on it was a 90-page report so maybe it's taking longer for trevor to come up with a response here the first response is we know and hindenburg did disclose a short position in nikola >> it's a tough one. i think if you look back at elon musk's history he face add ld af criticism. he took on the shorts and he won. he even has a gym short line on the tesla.com website to show for it i don't love to see founders, ceos get in wars with shorts it's a bad look and it's distracting from the business. that being said, the fact that this stock went up 40% on that gm news e

ed: they want the focus to be on nikola.has been the case since the short seller report came out, since additional reports came out from agencies investigating those allegations of deception and lies about the technology is that all of the attention has been on trevor. he acts in a way that is unusual at best for a fiduciary at a public company. in the days following that report, trevor took to twitter, instagram, doing live broadcast sand details about his reaction to that short seller report. he stated that he planned to give a complete point by point rebuttal. as time has gone on, investors and wall street analysts have basically said that he needed to be reined in. the company's chief executive officer and ceo have been on ,his charm offensive to her peering at different conferences, trying to explain the position. they answered questions about the allegations raised in the report, they said right now we are all focusing on our core technologies. they said, now is the time for execution. trevor is stepping away to shift

let's hit nikola shares closing lower by 19%.xecutive chairman amid an investigation into the company. nikola has fallen now 35% since they published a report accusing the company of an ocean of lies. joining us by phone is widely watched short seller carson block, chief investment officer of muddy waters capital. he does not have a short position in the stock. but clearly the insight as someone who an investor who has called out companies for fraud and has been right, i think mostly ch most mostly chinese companies what were you thinking as you watch this unfold? >> first of all, i think the research was great p there had been some reports previously about nikola and some of the issues with the demonstrations clearly trevor milton is somebody we should look a little bit at because, i mean, even before the nation this morning, they had no credibility. the promotional video that the company filmed of the nikola one where it referred it to as in motion and it was moving but all they did was push it down the hill they admitted that

. >> 50, up 70 you look at nikola and you say -- nikola -- you say to yourself, well, wait a second, there was a stock that was at 80. >> wedbush suddenly see that the light has turned from yellow to red and they're now down grading it. >> i always love a heads up like that. >> yeah. >> 18. >> it's been a twilight-zone-like few weeks for nikola investors they say. some highs, the flagship gm partnership and a couple lows. i didn't see your "mad money" piece on t but i did read it yesterday. you were pretty -- >> i blew this one to kingdom come about 20 points ago because i didn't believe in the bp deal which the short seller hindenburg blew up the bp deal -- didn't really blow it up, bh -- >> they may or may not have. from nikola's point of view you could say, listen, we were very close to getting another anchor of our strategy, we had the gm deal, we were going to get this -- starting to move on hydrogen stations in a significant way with a partner there and we would have actually executed on the vision if not for this piece. >> i mean, again, david, that truck that looked like it w

nikola might hurt them. we'll talk about that later but i do want to stick with individual investors and the theme what gets them excited. for a long time today the number one percentage gainer on the entire s&p is xterra. they announced a four-for-one stock split. investors who bought on the stock submit announcement for tesla, apple, sold the day they split made a fortune. look like they're going for it again but you think it is a mistake? >> don't buy it for the stock split, charles. buy it because it's a great company. i have don't think you will get the kind of action from tesla or apple. i sold this one too early. i tried to be cute with it. i will probably have to find another entry stock. don't look at it as utility stock. look at it as a growth stock. look at the chart compared to the s&p 500 t outperformed not just year-to-date, the last five years, 10 years, two decades this company has been beating the s&p 500. i think it's a great company. charles: talk about going to the other end of the spectr

nikola scarlet fu has more of the details. much as shares fell as --.surged almost $80 after setting a reservation date for its electric truck. trevor milton is leading the startup he founded, a week after the sec began investigating hindenburg research's claim that nikola misled investors over its technology. a former gm executive will replace milton. he already sits on the board and has been with the company since it combined with his. many investors who helped drive the stock higher, seen as the next tesla because milton is big and personality, likes to sound off on twitter. unlike tesla, nikola has actually yet to make a vehicle, and has therefore not generated any meaningful revenue. cowen says the optics on this are terrible, but it is the best us of outcome for nikola. the company has a strong bench and can now make good on its pact with general motors, which took a 12% stake. shares of gmr down. gm says it will continue to work on hoping to bring the company's vehicle to market. we are also seeing fallout in a green energy company that was count