General Motors receives 11 % ownership in Nikola, according to the company’s press release. Equity stake, worth $2 billion with a right to nominate one director, goes in exchange for certain in-kind contributions.
- General Motors will engineer, build, and accept the Nikola Badger for fuel cell electric and the battery electric vehicle variants in this partnership.
- Nikola expects to save over $4 billion in manufacturing and $1 billion in engineering and validation costs over 10 years.
- General Motors expects to receive more than $4 billion. Benefits will come from Badger manufacturing, supply contracts for batteries and fuel cells, Nikola shares’ value, and EV credits retained over the partnership’s lifetime.
- Badger scheduled to enter production by year-end 2022
General Motors will be an exclusive supplier to Nikola for Class 7/8 trucks worldwide, excluding Europe.
GM: Nyse is up 7.93%
NKLA: Nasdaq is up 40.93%