By Christiana Sciaudone
Investing.com -- Nikola's up almost 7% after JPMorgan (NYSE:JPM) said the General Motors (NYSE:GM) deal could still happen -- though on different terms. The analyst reiterated its buy-equivalent rating and price target of $441.
"We believe Nikola and General Motors are still likely to enter into a strategic partnership by Dec. 3," said analyst Paul Coster, according to StreetInsider.
Shares are down some 69% since an all-time high in June after the company was accused of fraud, including portraying vehicles as mobile when they were not.
"We think a more probable scenario is that the deal closes with the original terms, or it is re-engineered for a narrower scope that eliminates or down-sizes the Badger initiative (this seems like a net negative for GM, so they might seek more equity in return for the concession)."
Walking away from the deal completely seems unsatisfactory for both parties, Coster said. Nikola needs access to GM's supply chain, engineering resources and more to remove risks. GM, on the other hand, needs to realize a return on billions of dollars of investment in hydrogen fuel cells.