Electric-car seller Nikola (NKLA) – Get Report shares were riding a bit of a roller coaster on Wednesday morning.
First, they soared after a posting reportedly on General Motors‘ (GM) – Get Report website indicated GM agreed to make the Nikola Badger model and to be the exclusive supplier of Hydrotec fuel cells, Seeking Alpha reports.
But then Nikola shares slipped from their high after both GM and Nikola said they have no news to report, according to Seeking Alpha.
Nikola shares recently traded at $24.47, up 11.26%. But they fell back from a high of $26.20 to $23.78 after the GM news was released and then denied, before recovering. The stock has soared 144% year to date.
GM recently traded at $43.90, up 4.59%, and has climbed 20% so far this year.
Earlier this month, GM Chief Executive Mary Barra said that talks with Nikola about a potential partnership were continuing.
GM said in September that it would pay $2 billion for an 11% stake in Nikola. But a Securities and Exchange Commission investigation into fraud claims that were levied by short seller Hindenburg Research put the deal into question.
The two sides have the option to terminate the agreement if a deal is not reached by Dec. 3.
GM plans to accelerate its electric vehicle production plans, Barra told analysts on the Detroit automaker’s earnings call.
She said that demand for the company’s upcoming Hummer electric truck and Cadillac Lyriq electric SUV is exceeding expectations.
GM plans to invest $20 billion to develop electric cars and self-driving vehicles over the next five years.