Thursday, December 2, 2021
48.4 F
Fort Worth

GM walks away from stake in electric vehicle maker Nikola

🕐 2 min read

by AP News.

NEW YORK (AP) — General Motors will not take an initial stake in the electric vehicle company Nikola, which announced Monday that it would scuttle on of its marquee vehicles, an electric and hydrogen-powered pickup that was to be called the Badger.

Shares of Nikola plunged 21% at the opening bell.

Nikola on Monday released updated terms between the companies for a supply agreement related to GM’s fuel-cell system , replacing an agreement signed in September. That deal would have given GM an 11% stake in Nikola.

That agreement would have allowed Nikola to use GM’s new battery electric truck underpinnings for the Badger, and also GM’s fuel cell and battery technology. GM had agreed to supply batteries for other Nikola vehicles including heavy trucks.

The deal appeared to be in jeopardy in late September GM cast doubt on whether a $2 billion partnership would close as scheduled, saying that the deal has not closed and discussions with Nikola are continuing.

That announcement came just days after Nikola founder and Chairman Trevor Milton resigned after a Hindenburg Research, a company that’s betting Nikola stock will drop, accused Nikola of Fraud. Nikola denies the allegations and called them misleading.

Hindenburg said Nikola’s success was an “intricate fraud,” including a video showing a truck rolling downhill to give the impression it was cruising on a highway, and stenciling the words “hydrogen electric” on the side of a vehicle that was actually powered by natural gas.

The Securities and Exchange Commission and the Justice Department are reportedly investigating. GM has said it did proper due diligence before entering the partnership.

Nikola said Monday that its work on heavy trucks will continue.

“Heavy trucks remain our core business and we are 100% focused on hitting our development milestones to bring clean hydrogen and battery-electric commercial trucks to market,” said CEO Mark Russell.

Nikola is based in Phoenix.

Related Articles

Our Digital Sponsors

Latest Articles

Fort Worth Business Press Logo
This advertisement will close in
00
Months
00
Days
00
Hours
00
Minutes
00
Seconds
seconds..
Click here to continue to Fort Worth Business Press

Not ready to subscribe?

Try a few articles on us.

Enter your email address and we will give you access to three articles a month, to give us a try. You also get an opportunity to receive our newsletter with stories of the day.

This field is for validation purposes and should be left unchanged.

Get our email updates

Stay up-to-date with the issues, companies and people that matter most to business in the Fort Worth.

  • Restaurants
  • Technology
  • and more!

FWBP Morning Brief

FWBP 5@5

Weekend Newsletter

  • Banking & Finance
  • Culture
  • Real Estate