Nikola and General Motors have announced a strategic partnership. Under the agreement, GM will provide $ 2 billion in manufacturing services to Nikola, receiving in return an 11% stake in the startup and the right to appoint one of the directors to its board.
Through the partnership, GM becomes the exclusive supplier of fuel cells for the future Nikola 7/8 trucks. GM CEO Mary Barra said she sees this as another avenue for the company’s battery and fuel cell systems.
The agreement also stipulates that GM will design, validate and document documentation for the Nikola Badger electric pickup and hydrogen-electric hybrid pickup. For Nikola, the agreement is especially important in that it will bring the start of production of its cars closer. It is reported that GM, in particular, will take over the assembly of the Nikola Badger fuel cell pickup truck, which is expected to begin production by the end of 2022.
The partnership will allow Nikola to enter the market faster, shifting production responsibilities to one of the world’s largest car manufacturers. This, in turn, will allow Nikola investors to get their money back faster and probably with less risk. For GM, the cooperation agreement represents a significant asset with significant potential. However, not all experts share this opinion. For example, Electrek considers the deal a “terrible” way to spend such a large amount. In his opinion, GM will receive 11% of the assets of the controversial and controversial brand, although it could start producing an electric pickup on its own for much less money.
After signing a strategic partnership agreement with General Motors, Nikola’s share price rose by 37%.
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