[Wash Examiner] As Tesla struggles to maintain a rising stock price during the morning trading session on Tuesday, General Motors was busy inking a deal with one of its competitors.
Nikola Motor Company, the maker of an electric truck that is expected to compete with Tesla's Cybertruck, announced it is teaming up with General Motors in a deal that will send 11% equity to the Detroit manufacturer.
"Nikola is one of the most innovative companies in the world. General Motors is one of the top engineering and manufacturing companies in the world. You couldn’t dream of a better partnership than this," Nikola founder and executive chairman Trevor Milton said in a statement. "Nikola immediately gets decades of supplier and manufacturing knowledge, validated and tested production-ready EV propulsion, world-class engineering and investor confidence. Most importantly, General Motors has a vested interest to see Nikola succeed. We made three promises to our stakeholders and have now fulfilled two out of three promises ahead of schedule. What an exciting announcement."
Renderings of Nikola's first truck, the Badger, have been widely circulated on social media and is expected to begin production in 2022. The truck will use both fuel and hydrogen battery cells and is expected to have a 600-mile range and 906 horsepower.
As part of the partnership, Nikola agreed to hand over $2 billion in stock to GM. |