Image: Nikola Corp.
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General Motors and Nikola Corp. have today announced they are combining forces, with GM investing $2 billion in Nikola in return for a number of “in-kind contributions.”
Nikola is an American company focused on zero-emission vehicles, and this deal sees the future of its forthcoming Badger electric pickup placed firmly in the hands of GM. The investment not only secures GM an 11 percent stake in Nikola, it sees the company take on all engineering and build work for the Badger, in both its battery and hydrogen fuel cell forms. The Badger is expected to enter production by year-end 2022.
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By doing this deal, Nikola expects to save $4 billion in battery and powertrain costs over the next 10 years, while also saving $1 billion in engineering and validation costs. GM in return expects over $4 billion in benefits spread across equity value, contract manufacturing of the Badger, supply of batteries and fuel cells, and electric vehicle credits.
“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,” said Nikola Founder and Executive Chairman Trevor Milton. “By joining together, we get access to their validated parts for all of our programs, General Motors’ Ultium battery technology and a multi-billion dollar fuel cell program ready for production. 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.”
Although GM is now heavily involved in production of the Badger, Nikola will retain the brand and be responsible for all sales and marketing. So as far as customers are concerned, it’s going to be a Nikola vehicle. To celebrate the partnership announcement, Nikola is offering $100 Badger pre-order reservations to anyone interested. Prices start at $60,000 for the battery model with a 300-mile range. The hydrogen fuel cell model starts at $80,000, but offers a 600-mile range.
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