GM buys eleven percent stake in US electric truck maker
Tuesday afternoon shares of the hydrogen semi truck maker, Nikola Corp (NKLA), jumped almost 40% on news that they will partner with General Motors (GM). For GM’s investment in the company it will receive $2 billion in new NKLA stock and will have 11% ownership of Nikola plus the right to nominate one director to its board.
Nikola expects to save billions with the partnership by having access to GM’s Ultium battery system and Hydrotec fuel cell technology along with other GM parts and components. GM expects to make billions by providing batteries and fuel cells and EV (Electric Vehicle) tax credits. GM will engineer and manufacture the Nikola Badger, anticipated by the end of 2022.