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EV Roundup: NKLA's SEC Settlement, GM's 'Everybody In' Strategy & More
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Nikola (NKLA - Free Report) breathed a sigh of relief last week as the electric vehicle (EV) maker managed to pull itself out of the legal challenges that had been troubling it since 2020. The company has agreed to pay the SEC $125-million penalty to bring the controversial chapter to a close. Meanwhile, e-mobility startup Fisker and tiremaker Bridgestone (BRDCY - Free Report) joined forces for EV after-sales services. U.S. auto giant General Motors (GM - Free Report) grabbed the spotlight by taking its electrification game a notch higher with the latest strategy of offering EV technology beyond its own vehicle portfolio. EV behemoth Tesla (TSLA - Free Report) also made it to the headlines as its CEO Elon Musk is fast advancing to reach his goal of selling 10% of his holdings.
Recap of the Week’s Important News
Nikola was levied with a $125-million penalty charge to be paid to the U.S. Securities and Exchange Commission (“SEC”) over purported misleading statements about the company’s capabilities made by its founder and former CEO, Trevor Milton, last year. The EV firm welcomed the decision as it indicated the closure of government investigations.
The SEC, in its settlement, stated that Nikola is held responsible for both Milton’s remarks and other alleged deceptions, all of which falsify the actual state of the company’s business and technology. The charge levied by it has to be made in five installments over the next two years, with the first installment scheduled at 2021-end. The remaining installments will be paid semiannually through 2023. NKLA had anticipated the settlement charge as it had taken a $125-million reserve in third-quarter earnings, as was announced this November.
Fisker and Bridgestone joined forces for comprehensive after-sales and related maintenance solutions in France and Germany. The latest collaboration scaled up Fisker’s recent agreement with Bridgestone, making the latter its exclusive tire partner for its upcoming all-electric Fisker Ocean SUV. Bridgestone will make its EV-ready retail and service network available to provide Fisker’s customers in France and Germany with widespread after-sales services throughout the Speedy, Pitstop, and Reiff-ABS networks, which are part of Bridgestone’s extensive retail network in Europe.
United in their vision for a more sustainable future of mobility, the partnership is a win-win deal for both companies. Joining forces with EV startups like Fisker is a crucial aspect of Bridgestone’s approach and the company is optimistic about putting its EV-ready retail network at the disposal of Fisker’s customers. Fisker also considers Bridgestone as a compatible partner with a like-minded approach to sustainability that is investing across its entire value chain, from R&D and product development to manufacturing and retail, to make environment-friendly products aimed at shaping the future of sustainable transportation.
General Motors announced the strategy of offering the EV technology beyond the core product menu and automotive applications, one component at a time, advancing the firm’s “Everybody In” electrification approach. GM will begin introducing various EV component sets in four key areas: Chevy Performance and Aftermarket, GM Powered Solutions, Ground Support Equipment, and Marine Propulsion.
Chevy Performance and Aftermarket applications include the Electric Connect and Cruise eCrate Package to be launched in 2022. GM Powered Solutions will also begin unveiling customized electric component sets for tailor-made applications through its current GM Marine, On-Highway, Off-Highway and Industrial segments. As far as Ground Support Equipment is concerned, General Motors will provide EV components to electrify Textron GSE’s TUG line of baggage tractors, cargo tractors and belt loaders. Finally, for Marine Propulsion, the company’s strategic investment in Seattle-based electric watercraft company Pure Watercraft is an exciting opportunity to bring the EV technology to the marine industry.
Tesla CEO Musk confirmed that he has almost met his pledge to sell 10% of his stake in the company. Last week, the billionaire offloaded another 583,611 shares for $548 million. This brings his total sales to more than $14 billion worth of Tesla stock in around 40 days. To deliver on his stated goal of selling 10% shares, Musk needs to dispose off about 17 million shares, assuming that his target excludes exercisable options. Musk left Twitterati open-mouthed with a bizarre poll asking his followers to vote whether he should sell 10% of his stock. With the majority of his followers voting in favor of the stock sale, Musk abided by his promise by starting to offload his Tesla holdings.
In other news, Tesla inked a one-year agreement with Hyundai Glovis, a logistics company from South Korea specializing in car distribution, among other shipping-related services, to transport vehicles from China to other parts of the world. The contract is reportedly worth $422 million.
Price Performance
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What’s Next in the Space?
Stay tuned for announcements of upcoming EV models and any important updates from the red-hot industry.
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EV Roundup: NKLA's SEC Settlement, GM's 'Everybody In' Strategy & More
Nikola (NKLA - Free Report) breathed a sigh of relief last week as the electric vehicle (EV) maker managed to pull itself out of the legal challenges that had been troubling it since 2020. The company has agreed to pay the SEC $125-million penalty to bring the controversial chapter to a close. Meanwhile, e-mobility startup Fisker and tiremaker Bridgestone (BRDCY - Free Report) joined forces for EV after-sales services. U.S. auto giant General Motors (GM - Free Report) grabbed the spotlight by taking its electrification game a notch higher with the latest strategy of offering EV technology beyond its own vehicle portfolio. EV behemoth Tesla (TSLA - Free Report) also made it to the headlines as its CEO Elon Musk is fast advancing to reach his goal of selling 10% of his holdings.
Recap of the Week’s Important News
Nikola was levied with a $125-million penalty charge to be paid to the U.S. Securities and Exchange Commission (“SEC”) over purported misleading statements about the company’s capabilities made by its founder and former CEO, Trevor Milton, last year. The EV firm welcomed the decision as it indicated the closure of government investigations.
The SEC, in its settlement, stated that Nikola is held responsible for both Milton’s remarks and other alleged deceptions, all of which falsify the actual state of the company’s business and technology. The charge levied by it has to be made in five installments over the next two years, with the first installment scheduled at 2021-end. The remaining installments will be paid semiannually through 2023. NKLA had anticipated the settlement charge as it had taken a $125-million reserve in third-quarter earnings, as was announced this November.
Nikola currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fisker and Bridgestone joined forces for comprehensive after-sales and related maintenance solutions in France and Germany. The latest collaboration scaled up Fisker’s recent agreement with Bridgestone, making the latter its exclusive tire partner for its upcoming all-electric Fisker Ocean SUV. Bridgestone will make its EV-ready retail and service network available to provide Fisker’s customers in France and Germany with widespread after-sales services throughout the Speedy, Pitstop, and Reiff-ABS networks, which are part of Bridgestone’s extensive retail network in Europe.
United in their vision for a more sustainable future of mobility, the partnership is a win-win deal for both companies. Joining forces with EV startups like Fisker is a crucial aspect of Bridgestone’s approach and the company is optimistic about putting its EV-ready retail network at the disposal of Fisker’s customers. Fisker also considers Bridgestone as a compatible partner with a like-minded approach to sustainability that is investing across its entire value chain, from R&D and product development to manufacturing and retail, to make environment-friendly products aimed at shaping the future of sustainable transportation.
General Motors announced the strategy of offering the EV technology beyond the core product menu and automotive applications, one component at a time, advancing the firm’s “Everybody In” electrification approach. GM will begin introducing various EV component sets in four key areas: Chevy Performance and Aftermarket, GM Powered Solutions, Ground Support Equipment, and Marine Propulsion.
Chevy Performance and Aftermarket applications include the Electric Connect and Cruise eCrate Package to be launched in 2022. GM Powered Solutions will also begin unveiling customized electric component sets for tailor-made applications through its current GM Marine, On-Highway, Off-Highway and Industrial segments. As far as Ground Support Equipment is concerned, General Motors will provide EV components to electrify Textron GSE’s TUG line of baggage tractors, cargo tractors and belt loaders. Finally, for Marine Propulsion, the company’s strategic investment in Seattle-based electric watercraft company Pure Watercraft is an exciting opportunity to bring the EV technology to the marine industry.
Tesla CEO Musk confirmed that he has almost met his pledge to sell 10% of his stake in the company. Last week, the billionaire offloaded another 583,611 shares for $548 million. This brings his total sales to more than $14 billion worth of Tesla stock in around 40 days. To deliver on his stated goal of selling 10% shares, Musk needs to dispose off about 17 million shares, assuming that his target excludes exercisable options. Musk left Twitterati open-mouthed with a bizarre poll asking his followers to vote whether he should sell 10% of his stock. With the majority of his followers voting in favor of the stock sale, Musk abided by his promise by starting to offload his Tesla holdings.
In other news, Tesla inked a one-year agreement with Hyundai Glovis, a logistics company from South Korea specializing in car distribution, among other shipping-related services, to transport vehicles from China to other parts of the world. The contract is reportedly worth $422 million.
Price Performance
What’s Next in the Space?
Stay tuned for announcements of upcoming EV models and any important updates from the red-hot industry.