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Comment by toomuchtodo | Hacker News Reader

11% of 0 is 0. This simply solidifies the idea that GM is led by out of touch legacy management. "We were supposed to check they only rolled the truck down a hill?"

Say what you will about Musk and Tesla (I know, I know), but their Class 8 Semi did a nationwide tour (under its own power) to potential customers [1] and also occasionally pitches in to perform vehicle deliveries [2], no downhill coasting required.

[1] https://electrek.co/2018/08/25/tesla-semi-drove-across-count...

[2] https://electrek.co/2020/06/26/tesla-semi-spotted-used-deliv...

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In addition to the 11%, GM is also slated to earn up to 700 million dollars in cash.

More specifically was slated to earn 700 million, if the Nikola ponzi had been able to slip under the radar and continue. I'm absolutely sure NKLA does not have 0.7 billion lying around in cash, those are new investment that they need to raise. Fake it till you make it, they say.

In the current situation, all investors will require substantial proof of working technology. No working tech, no new investment, the company will probably fold before paying back a cent to GM.

As of their last earnings report Nikola had almost exactly $700M in cash / cash equivalents. Maybe GM just wants that :)

That's interesting. Without any product, what exactly are those sources of cash earnings?

Reverse merger with a SPAC investment vehicle. They're not earnings, they're investor funds.

https://www.businessinsider.com/spac-biggest-blank-check-dea...

They need that for the next 3 years where they will not make money.

They probably can sell calls against those shares, basically getting risk-free money regardless of NKLA price in future.

Doubt it because if it got exercised they would be selling their stock. Otherwise, they just be able to sell daily calls at 1 cent below the price for no premium and watch it exercise and thus liquidating the stock they are supposed to hold onto.

If GM didn't know they rolled it down a hill then it sounds like people are going to jail.

Not really. They can probably sell it at a loss and recover it all back in tax breaks.

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