Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  Equities  >  London Stock Exchange  >  BP plc    BP.   GB0007980591


SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

BP : Nikola CEO confident of closing deal with energy partner, shares up almost 21%

share with twitter share with LinkedIn share with facebook
09/30/2020 | 03:07pm EDT
FILE PHOTO: U.S. Nikola's logo is pictured at an event held to present CNH's new full-electric and Hydrogen fuel-cell battery trucks in partnership with U.S. Nikola event in Turin

Nikola Corp Chief Executive Mark Russell said Wednesday he is confident the electric and hydrogen fuel cell vehicle startup will close a deal with an energy partner, and he defended the company's technology and strategy against a short-seller's fraud allegations, sending shares up almost 21% at one point.

Russell told Reuters he is confident Nikola will still announce by year-end a collaboration to build hydrogen-refueling stations. There have been reports this week that Nikola's talks with energy firms, including BP Plc, had stalled.

"We've talked to all of those folks and those discussions are continuing," he said in an interview. "We're confident that we're still going to hit the milestones laid out there of announcing a partner by the end of the year and getting stations going starting next year."

Short-seller Hindenburg Research released a scathing report on Sept. 10 that called Nikola a "fraud" and said Nikola founder and former Executive Chairman Trevor Milton had made false claims about Nikola's proprietary technology.

Milton resigned and left the company on Sept. 21 and was replaced by Steve Girsky, whose firm took Nikola public earlier this year through a reverse merger.

Nikola has said it has discussed Hindenburg Research's charges with the Securities and Exchange Commission and will "fully cooperate" with the agency's inquiry. Russell and Girsky on Wednesday declined to comment on probes by securities regulators or the Department of Justice. Hindenburg officials declined to comment.

Nikola's shares have lost more than half their value since announcing on Sept. 8 a prospective alliance with General Motors Co to produce an electric pickup and fuel cell commercial trucks.

On Wednesday, Nikola stepped up its efforts to regain investor support with a lengthy statement defending its business model and technology. It reaffirmed its timetable for launching vehicles and announcing partnerships.

Nikola said it still expects to break ground on its first commercial hydrogen station in the second quarter of 2021.

Girsky, who joined Russell in the interview, said Nikola will be as much a service provider, generating revenue from refueling and other after-sale businesses, as a manufacturer of vehicles.

"Downstream revenue is more profitable and less cyclical. To be able to capture that revenue is pretty powerful to us," Girsky said.

Russell said talks continue to finalize an alliance with GM but declined further comment. Nikola had previously said it expected to finalize terms prior to Sept. 30.

GM also affirmed Wednesday that the talks with Nikola continue.

Russell said Nikola's success did not depend on partners, but they "increase the odds of succeeding."

JP Morgan analyst Paul Coster said in a research note Nikola is trying to "re-establish control of the narrative around the company." He said closing the GM deal is the most important near-term catalyst and Nikola's strategy remains compelling although execution risks remain.

Nikola shares rose as high as $21.59 and were still up 17.5% at $21.02 in afternoon trading.

By Ben Klayman

Stocks mentioned in the article
ChangeLast1st jan.
BP PLC 2.04% 205.5 Delayed Quote.-56.42%
NIKOLA CORPORATION -0.79% 22.54 Delayed Quote.118.41%
share with twitter share with LinkedIn share with facebook
All news about BP PLC
10/22ANALYSIS : U.S. Supreme Court's rightward move could benefit oil and gas interes..
10/22BP PLC : quaterly earnings release
10/22Solar projects already meet BP's profit goals, Lightsource BP says
10/21SUIT : Feds ignore risk of huge spills to endangered species
10/21BP : Global powers push to end Nagorno-Karabakh fighting
10/20Top Morgan Stanley commodities executives leave after rules breach
10/20Equinor bids for two wind power projects off U.S. East Coast
10/20EQUINOR : bids for two wind power projects off New York
10/20BP : Statement on European Commission methane strategy
10/20BP : Goldman Sachs reiterates its Buy rating
More news
Financials (USD)
Sales 2020 183 B - -
Net income 2020 -22 271 M - -
Net Debt 2020 45 062 M - -
P/E ratio 2020 -2,40x
Yield 2020 10,0%
Capitalization 54 309 M 54 337 M -
EV / Sales 2020 0,54x
EV / Sales 2021 0,43x
Nbr of Employees 67 600
Free-Float 93,2%
Chart BP PLC
Duration : Period :
BP plc Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends BP PLC
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 21
Average target price 4,44 $
Last Close Price 2,68 $
Spread / Highest target 150%
Spread / Average Target 65,7%
Spread / Lowest Target -3,41%
EPS Revisions
Bernard Looney Chief Executive Officer & Director
Helge Lund Chairman
Andy Hopwood COO & Executive VP-Upstream Strategy
Murray Auchincloss Chief Financial Officer
Angela Rosemary Emily Strank Chief Scientist & Head-Downstream Technology
Sector and Competitors
1st jan.Capitalization (M$)
BP PLC-56.42%54 337
NESTE OYJ57.96%44 536
PTT-26.70%29 421