Musk Sells More Tesla Stock, Nikola To Pay $125M to SEC

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Heniff signs agreement to acquire 10 Nikola Tre BEV trucks from Thompson Truck.

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From the hotly-debated high-flier Tesla, Wall Street’s newest darling Rivian, traditional-stalwarts turned EV-upstarts GM and Ford to the numerous SPAC-deal makers that have come public in this red-hot space, The Fly has you covered with “Charged,” a weekly recap of the top stories and expert calls in the sector.

ELON MUSK SELLS MORE STOCK: 

In a regulatory filing on Wednesday, Tesla (TSLA) disclosed that its CEO Musk sold another $333.6M in common stock on December 22nd after exercising option for 2.1M shares.

NIKOLA TRE BEV TRUCKS: 

Heniff Transportation Systems has reached an agreement to initially acquire 10 Nikola (NKLA) Tre BEV trucks from Thompson Truck Centers, a member of the Nikola sales and service dealer network. Nikola is a leading designer and manufacturer of heavy-duty commercial battery-electric vehicles, fuel-cell electric vehicles and energy infrastructure solutions. The agreement between Heniff Transportation and Thompson Truck Centers is a fleet-as-a-service model where Thompson will provide the sales, service, maintenance, and energy infrastructure required to operate the Nikola Tre BEV trucks. Deliveries are expected to commence first half of 2022. Upon the successful initial deployment of 10 units into their bulk transport operation, Heniff and Thompson have agreed to pursue the placement of an additional 90 trucks into Heniff’s fleet.

NIKOLA, SEC SETTLEMENT AGREEMENT: 

Nikola announced a resolution with the U.S. SEC. As part of the resolution, Nikola has agreed to pay $125M to the SEC in five installments over two years. The first installment will be paid by the end of 2021, and the remaining installments will be paid semiannually through 2023. The company previously disclosed on November 4, 2021 that it had taken a $125M reserve in its third quarter earnings to account for the expected settlement. Nikola commented further, “We are pleased to bring this chapter to a close as the company has now resolved all government investigations. We will continue to execute on our strategy and vision to deliver on our business plan, including delivering trucks to customers, expanding our manufacturing facilities and our sales and service network, and building out our hydrogen infrastructure ecosystem including hydrogen production, distribution and dispensing stations. Under the terms of the resolution, Nikola neither admits nor denies the SEC’s findings in this matter. The company has taken action to seek reimbursement from its founder, Trevor Milton, for costs and damages in connection with the government and regulatory investigations.”

ON THE SIDELINES: 

Evercore ISI analyst Sean Morgan initiated coverage of First Solar (FSLR) with an In Line rating and $107 price target. The analyst noted that even with near-term solar sector prospects positive on the global effort to expand renewable energy, he is cautious on First Solar’s longer-term risk/reward profile. The company has benefitted from market forces, but risks to a continued benign operating environment could drive downside, Morgan added. The analyst also pointed out that Chinese photovoltaic manufacturing is expanding rapidly and the favorable tariffs that have supported the shares since 2018 are set to expire in February. With that said, Morgan added First Solar to the firm’s “Short-Term Tactical Outperform” list given the recent share pullback.

BUY LUMINAR: 

Citi analyst Itay Michaeli resumed coverage of Luminar (LAZR) and believes the Consumer Electronics Show could emerge as a positive catalyst for the stock given the event’s “deeper focus” on the consumer autonomous vehicle opportunity as well as technology updates from the company.

Originally Posted on December 27, 2021 – Musk Sells More Tesla Stock, Nikola To Pay $125M to SEC

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