General Motors acquires 11% stake in electric truck startup Nikola

Electric truck startup Nikola and General Motors (GM) have today, September 8, announced a strategic partnership that cedes 11% ownership of Nikola to General Motors.

The deal will see General Motors produce Nikola’s wild fuel cell pickup truck by the end of 2022.

Industry review revealed that both companies’ shares had jumped up following the signing of the new deal, with Nikola trading up 45% and GM up 11% in pre-market trading.

The 11% deal secured for GM a $2 billion stake in Nikola, as it gains one seat on Nikola’s board of directors in exchange for in-kind services.

General Motors CEO Mary Barra noted that she sees the new development as another path to deploy GM’s battery and fuel cell systems, adding that the deal was expected to increase the company profitability.

She said: “We are growing our presence in multiple high-volume EV segments while building scale to lower battery and fuel cell costs and increase profitability.”

“In addition, applying General Motors’ electrified technology solutions to the heavy-duty class of commercial vehicles is another important step in fulfilling our vision of a zero-emissions future,” she added.

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