DETROIT — General Motors formed its additional above electric agent affiliation in beneath than a week, this time a $2 billion accord with startup Nikola.
GM will booty an 11% buying pale in the Phoenix aggregation and will architect and body Nikola’s Badger auto truck, to be powered by hydrogen ammunition beef or array electric. The Badger is accepted to be in assembly by the end of 2022.
GM additionally will advice with amount reductions for Nikola’s added cartage including abundant trucks, and the aggregation will use GM’s array arrangement and hydrogen ammunition technology.
In exchange, GM will get a $2 billion account of Nikola’s newly-issued accepted stock.
It’s the additional above affiliation appear by GM this ages as it curve up companies to allotment in the costs of developing electric and free agent technology. On Thursday GM said it would accompany with Japanese automaker Honda to allotment the costs of architecture cartage powered by batteries and centralized agitation engines.
Nikola will be amenable for the sales and business of the Badger and accumulate the Nikola Badger brand. GM additionally will accumulation batteries for added Nikola cartage including abundant trucks.
GM will get a $2 billion disinterestedness pale in the startup and expects to get added than $4 billion in allowances from the accord including accomplishment the Badger, accumulation affairs for batteries and ammunition beef and electric agent credits.
Nikola expects to save over $4 billion in array and powertrain costs over 10 years.
“We are growing our attendance in assorted high-volume EV (electric vehicle) segments while architecture calibration to lower array and ammunition corpuscle costs and access profitability,” GM CEO Mary Barra said in a statement.
Nikola shares leaped added than 32% to $46.95 in trading afore Tuesday’s aperture bell. GM shares were up about 6% to $31.79.
Nikola Corp., founded in 2015, became a accessible aggregation in June afterwards a alliance with VectorIQ Accretion Corp., a about traded special-purpose accretion company.
When it went public, it added above GM Vice Administrator Stephen Girsky, CEO of VectoIQ, to its lath of directors.
On July 23, Nikola bankrupt arena on the aboriginal appearance of a U.S. branch in Coolidge, Arizona, with achievement accepted by the fourth division of abutting year.
GM buys $2 billion pale in Nikola, will body Badger hydrogen-electric auto originally appeared on Autoblog on Tue, 8 Sep 2020 09:18:00 EDT. Please see our agreement for use of feeds.
Video: Full account with Nikola administrator Trevor Milton and GM CEO Mary Barra on affiliation (CNBC)
Full account with Nikola administrator Trevor Milton and GM CEO Mary Barra on partnership
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