On September 8, General Motors announced that it will hold 11% of the electric truck manufacturer Nikola and will produce its hydrogen fuel cell electric pickup Badger by 2022. As soon as the news came out, Nikola’s stock price soared, rising about 45% in pre-market trading, while General Motors stock price also rose nearly 9%.
General Motors will acquire Nikola’s US$2 billion worth of shares and the right to nominate a member of the board of directors. GM will also supply fuel cells to Nikola’s seven- and eight-class heavy-duty trucks in other regions of the world except Europe. Phoenix-based Nikola specializes in producing zero-emission semi-trailers powered by batteries or hydrogen fuel, but recently launched Badger pickup trucks to consumers.
GM CEO Mary Bora said, “Working with Nikola is an excellent opportunity for our Ultium battery platform system and Hydrotec fuel cell technology to be applied in practice, and to bring our engineering and manufacturing expertise to the table.”
Bora also emphasized the potential benefits of divesting the electric vehicle business, saying that General Motors has felt the pressure from Wall Street to divest the electric vehicle business and now expands its business from Badger pickups to Nikola semi-trailers. Great growth opportunity”.
Trevor Milton, founder and executive chairman of Nikola, said that this cooperation will bring the company more than just a manufacturer, it will also be able to use GM-proven parts and Ultium battery technology, and will be able to participate in a value A multi-billion dollar fuel cell project. “GM is very unique to us because the company not only helps us produce Badger pickups, but is also one of our buyers, manufacturers and engineering companies. This is a perfect partnership.”
Milto said in a statement that GM provided Nikola with decades of experience in supplier and manufacturing, proven and tested electric vehicle propulsion systems and world-class engineering design capabilities, and helped increase investor confidence. . More importantly, Nikola’s success is in line with General Motors’ vested interests.
After Nikola and the blank check company VectoIQ went public through a reverse merger, the stock began trading on June 4. Nikola was founded in 2015, and it is expected that the company will not be profitable until 2021. Nevertheless, the company’s stock price began to soar after the IPO, which also shows investors’ confidence in electric vehicle startups and hopes to bet on the next one Tesla.