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

Nikola Corp.’s talks with electricity companies which includes BP PLC to construct hydrogen-refueling stations have been stalled subsequent a limited-seller’s allegations that the electric automaker misled traders, the Wall Avenue Journal documented.

Prospective partners have been reluctant to shift ahead amid the heightened scrutiny, but a deal could even now come together, the Journal documented Wednesday, citing folks familiar with the subject.

Nikola and BP did not instantly answer to Reuters requests for comment.

Shares of Nikola were being down ten.six per cent to $twenty five.forty eight in midday trading Wednesday.

In a scathing report two weeks back, limited-vendor Hindenburg Investigation mentioned it had plenty of evidence to demonstrate Nikola and its founder Trevor Milton designed untrue statements about the firm’s proprietary technologies to sort partnerships with automakers.

Milton resigned subsequent the allegations but Nikola CFO Kim Brady mentioned Tuesday the enterprise has the backing of all its current automotive partners.

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