General Motors (GM) step back from its initial deal with Nikola Motors and dropping their equity stake with the company. Nikola Shares plunged more than 20%.
General Motors and Nikola signed a memorandum of understanding that replaces the September announcement of their strategic partnership, where GM would engineer and manufacture Nikola electric vehicles and take an 11% stake in the company.
Nikola executitves said the Badger pickup would be built only through an arrangement with an outside company. GM would no longer be the manufacturer of Nikola’s Badger pickup truck, which shuts down the project. The company stated it will refund order deposits placed for the truck.
Tesla’s S&P 500 debut
Tesla is set to be included on the S&P 500 on December 21st 2020. Tesla (TSLA) Current market cap is $554 billion, which makes it the largest company to be added to the index.
Due to Tesla’s large market valuation of more than $500 billion, the committee had considered either adding Tesla stock to the index in stages, or doing it all at once.The decision was to add Tesla stock to its index in one fell swoop will create unprecedented demand for Tesla stock as trillions of dollars in funds tied to the S&P 500 are forced to buy the electric vehicle company.