Nikola, GM partnership still likely by December 3, says JPMorgan

JPMorgan analyst Paul Coster believes Nikola (NKLA) and General Motors (GM) are still likely to enter into a strategic partnership by December 3. Nikola needs access to General Motors' supply chain and engineering resources while GM needs to realize a return on billions of dollars of investment in hydrogen fuel cells, and Nikola might be the best available option, Coster tells investors in a research note. Further, the Badger initiative might be of more interest to GM than Nikola, "for whom it seems to be a distraction," adds the analyst. Coster thinks GM and Nikola "remain locked in dialog" and that a restructured deal "still seems probable." He keeps an Overweight rating on Nikola with a $41 price target. The stock closed Friday down $3.75 to $19.54.