Nikola shares surged on Tuesday after General Motors announced that it was acquiring an 11% stake in the electric truck maker and will be producing its main electric fuel cell pickup, the Badger, by the end of 2022.
Nikola shares jumped about 45% premarket, while GM shares jumped nearly 9%.
GM gets a $ 2 billion stake in Nikola and the right to appoint one board member in exchange for in-kind services. GM will also become the exclusive worldwide supplier of fuel cells outside of Europe for Nikola for 7/8 trucks. Nikola manufactures trucks with battery and hydrogen.
“When we look at the possibility of continuing to leverage our technology – the Ultium battery platform system, as well as Hydrotec fuel cell technology – it’s a great test of our technology, and then bringing our engineering and manufacturing expertise to the table. , “GM CEO Mary Barra said in an interview with CNBC “Squeak box… “
Nikola’s founder and CEO, Trevor Milton, said the partnership gives Nicola access to proven GM parts, as well as her Ultium battery technology and multi-billion dollar fuel cell program.
“Nicola immediately gains decades of supplier and manufacturing knowledge, tried and tested ready-to-go electric vehicle powertrains, world-class engineering and investor confidence,” Milton said in a statement. “Most importantly, General Motors has a vital stake in Nikola’s success.”
Nikola began trading on June 4 following a reverse merger with VectoIQ, a publicly traded special purpose stock company led by former GM vice chairman Stephen Girski. The company’s shares have surged since its IPO, despite the fact that Nikola, founded in 2015, does not expect to generate earnings until 2021 and demonstrates that investors are ready to provide companies that promise the cars of the future.
Kevin Stankevich of CNBC contributed to this article.
This story is breaking down. Come back for updates.
