General Motors and electric truck startup Nikola will join forces to build the startup's proposed Nikola Badger pickup truck by the end of 2022 $GM $NKLA
As part of a multi-part, multibillion-dollar deal, GM received an 11% stake in Nikola, valued at about $2 billion. In return for the Nikola shares, GM will supply Nikola with batteries, a chassis architecture, fuel cell systems and a factory to build the startup’s proposed Nikola Badger pickup. GM will also supply fuel cell technology for Nikola’s planned Class 7 and 8 commercial tractor-trailers.
“We are certainly open to consider additional deals as it relates to both Ultium and the fuel cell Hydrotec technology,” she told reporters on a conference call. Shares of GM, which have been stuck for months at levels below $33 a share, the price of the 2010, post-bankruptcy public offering, rose about 10% to that price in afternoon trading.
Nikola will buy GM’s fuel cell systems for its Class 7 and Class 8 semi trucks. That deal runs for four years after start of production of those vehicles at a Nikola plant outside Phoenix and is exclusive except for the European market. Nikola CEO Trevor Milton said Tuesday that avoiding the cost of building a pickup truck assembly plant and developing a truck chassis was “a big deal for us.” Nikola’s Badger will now share major components under the skin - and a supply chain - with the GMC Hummer.GM under the deal also will receive EV credits, an important factor as most of GM’s vehicles are still gasoline-powered.
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