Nikola Shares Soar As General Motors Takes Stake in the Company
Author By Sophia VidaPosted on Shares of Nikola were popping on Tuesday, soaring as much as 53% after Wall Street learned that General Motors has taken an 11% stake in the electric truck maker.
GM has picked up a $2 billion stake in the company and now has the right to nominate one board member in exchange for in-kind services. As part of a partnership, GM will be producing the electric truck maker’s marquee hydrogen fuel cell electric pickup truck the Badger by the end of 2022.
“When we look at the opportunity to continue to leverage our technology — the Ultium battery platform system as well as the Hydrotec fuel cell technology — this is a wonderful validation of our technology, and then bringing our engineering and manufacturing expertise to the table,” GM CEO Mary Barra said in an interview on CNBC’s “Squawk Box.”
The partnership will extend beyond the Badger pickup truck to include Nikola’s semi trucks, too “so this is a huge growth opportunity for us,” said Barra.
Nikola founder and Executive Chairman Trevor Milton said in the same interview that the partnership gives Nikola more than just a manufacturer. Nikola will also have access to GM’s validated parts as well as its Ultium battery technology and a multibillion dollar fuel-cell program.
“GM was very unique to us because they brought a lot more than just building the Badger,” Milton stated. “It’s a perfect relationship. They’re one of the best purchasers, manufacturers, engineering houses in the entire planet.”
Milton has also said that GM gives Nikola “decades of supplier and manufacturing knowledge, validated and tested production-ready EV propulsion, world-class engineering and investor confidence. Most importantly, General Motors has a vested interest to see Nikola succeed.”
Nikola is aiming to roll out the Nikola Tre class 8 battery-electric vehicle in 2021, followed by Nikola Two class 8 fuel-cell electric semi in 2023.
Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.
