Nikola Jumps After Revealing Possible Pact With SEC (Correct)

Nikola Corp. surged the most in five months after disclosing settlement talks with regulators in which the company would pay a $125 million civil penalty, bringing the embattled electric-truck maker a step closer to closing a probe that’s cast a shadow over its path to production.

The company expects to pay the fine in installments, with a final deal subject to further negotiations with the U.S. Securities and Exchange Commission, the company said Thursday as it reported third-quarter financial results. The agency has been examining claims by a short-seller that Nikola deceived investors about its business prospects.

“We believe now ...