The automotive General Motors (GM) acquired 11% of the shares of the manufacturer of electric trucks and hybrids Nikola Corporation, In return, GM will provide the new starup pickup that will come out in late 2022.
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GM invested $ 2 billion as in Nikola, as part of the deal that also grants him a seat on Nikola’s board of directors in exchange for in-kind services.
“We are increasing our presence in multiple high-volume electric vehicle segments as we build scale to reduce battery and fuel cell costs and increase profitability. Additionally, applying General Motors’ electrified technology solutions to the heavy-duty commercial vehicle class is another important step in fulfilling our vision for a zero-emissions future, ”Mary Barra, CEO of General Motors said in a statement.
The association names GM as the exclusive fuel cell supplier for Nikola’s upcoming 7/8 class trucks.
“By joining together, we gain access to their validated parts for all of our programs, General Motors Ultium battery technology and a multi-million dollar production-ready fuel cell program. Nikola immediately gains decades of supplier and manufacturing knowledge, validated and proven production-ready EV propulsion, world-class engineering, and investor confidence. Most importantly, General Motors has a strong interest in Nikola’s success. We made three promises to our shareholders and have now delivered on two of the three promises ahead of schedule. What an exciting announcement, ”explained Nikola founder and CEO Trevor Milton in a statement.
The news sent the shares of both companies higher on the stock market. Nikola increased 45% and GM 11% in pre-market operations.
Instead, the competition from this new alliance, Tesla Motors, saw its shares collapse 15 percent minutes after the opening of Wall Street, due to the announcement of the GM / Nikola alliance.
The starup’s flagship product, the Nikola Badger, is an electric pick-up truck, considered one of the competitors of Tesla’s Cybertruck, along with the Rivian R1T and the Neuron EV T-One.