By Christiana Sciaudone
Investing.com -- Nikola slumped more than 6% after a strategic partner said it's dumping shares.
Green Nikola Holdings/Hanwha said in a filing it would sell half of its 22 million shares in the company. The South Korean company told Reuters it will use the proceeds to invest in hydrogen-related businesses.
It's yet another blow for the hydrogen truck company, whose founder Trevor Milton left in September after short seller Hindenburg Research accused the company of fraud.
Deutsche Bank (DE:DBKGn) on Thursday reiterated a hold rating on the company and kept the price target at $26 after hosting Nikola Corp (NASDAQ:NKLA) executives for investor meetings. The analyst said plans to produce hydrogen in Arizona will help lower execution risks and costs. That said, Deutsche Bank is concerned with the demand outlook and performance versus the competition, according to StreetInsider.
Last year, General Motors (NYSE:GM) announced plans to acquire an equity stake in Nikola, only to abandon them.
Meanwhile, Hindenburg has also targeted electric vehicle maker Lordstown Motors Corp (NASDAQ:RIDE), which is down 10% after reporting that the Securities and Exchange Commission is probing the company. Hindenburg accused Lordstown of making up orders for its Endurance vehicle.