Nikola Beats Third Quarter Forecast, Says Talks With GM Ongoing

Nikola Corp. beat a consensus forecast for the third quarter with a narrower-than-expected loss and said its talks with prospective partnerGeneral Motors Co. are ongoing.

The company said Monday it lost an adjusted 16 cents per share in the latest three-month period, better than a consensus forecast by analysts for a 20-cents a share loss. That compares with a 16-cents per share loss in the second quarter and a 5-cent loss a year ago.

Nikolawent public through a reverse merger with a blank-check company in June. At one point, its shares ballooned to almost $80 a share, giving it a market capitalization greater thanFord Motor Co. despite not generating any meaningful revenue. But the stock collapsed after a short selleraccused it of deception in September, a claim that Nikola denies.

Shares of the company rose as much as 4.4% in postmarket trading after closing down 4.9% to $18.63.

The startup and GM are in talks on a strategic partnershipannounced before the short-seller report. The allegations against Nikola have clouded the outlook for that deal, but the two automakers remain in negotiations ahead of a Dec. 3 deadline.

“The transaction has not closed, and Nikola is continuing its discussions with General Motors,” it said in astatement.

Nikola’s third-quarter losses before interest, taxes depreciation and amortization came to $58.8 million, better than the consensus forecast for an Ebitda loss of $70.8 million. It lost $47 million in the previous quarter and $11.1 million in the third quarter of 2019.

— With assistance by Esha Dey

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