Nikola & GM challenge Tesla with world’s ‘most badass’ 900-horsepower electric truck

Nikola & GM challenge Tesla with world’s ‘most badass’ 900-horsepower electric truck

GM expects to receive more than $4 billion of benefits "between the equity of the shares, contract manufacturing of the badger, supply contracts for batteries and fuel cells, and EV credits retained over the life of the contract", according to @andyjayhawk on Twitter.

And as part of the agreement, GM will provide Nikola access to its parts and components, including its Ultium battery technology, and GM will engineer, sanction, validate and manufacture the battery-electric and fuel-cell versions of Nikola's Nikola Badger truck.

General Motors and Nikola on Tuesday announced a comprehensive strategic partnership that will see GM provide Nikola with technology and services in return for $2 billion worth of newly issued shares, rivaling a similar, but smaller partnership between Ford and Rivian.

GM has been under pressure from Wall Street to more quickly monetize its electric vehicle technology, perhaps spinning off its EV unit as a separate company.

GM stake would be locked up until 2025, the automaker said. She said the electric vehicle platform and batteries are attractive to other companies, which is a huge opportunity for GM.

With the partnership, GM will be the exclusive supplier of its fuel-cell tech, badged Hydrotec, to Nikola for its Class 7/8 trucks to be made in Arizona.

GM has its own battery electric truck, a GMC Hummer, due to go on sale a year ahead of the Badger.

Nikola shares leaped more than 32% to $46.95 in trading before Tuesday's opening bell.

Nikola had alluded to a deal last month when it reported second-quarter results, when the company said one of the milestones the company should be measured by is the announcement of an original equipment manufacturing (OEM) partner for the Badger by the end of 2020. Like the Badger, it will be a battery-electric design with an available fuel cell range extender.

"This strategic partnership with Nikola, an industry-leading disrupter, continues the broader deployment of General Motors' all-new Ultium battery and. fuel cell systems", CEO Mary Barra said in a statement. "You couldn't dream of a better partnership than this", said Nikola Founder and Executive Chairman Trevor Milton. Nikola, however, will keep building a USA factory in Coolidge, Arizona, to make heavy trucks. The Detroit-based GM will be required to validate, homologate, and build the Badger for Nikola, which will save the startup over $4 billion in battery and powertrain costs over ten years.

For Nikola, the partnership with GM is a vindication of its efforts to gain credibility as it moves toward production of its first vehicles.

Nikola, founded in 2015, became a public company in June after a merger with VectorIQ Acquisition Corp., a publicly traded special-purpose acquisition company.

Related Articles

  • Australia expects to receive AstraZeneca's COVID-19 vaccine within months

    Australia expects to receive AstraZeneca's COVID-19 vaccine within months

    She said they will also finalize a confidentiality disclosure agreement or CDA with the vaccine maker. The vaccine candidate AZD1222 requires a two-dose/person regime.
    80 special trains from September 12

    80 special trains from September 12

    Yadav said the railways will monitor all the trains that are now in operation to determine which trains have a long waiting list. The national transporter, however, announced that 230 special trains which are running at present, will continue to operate.
    100,000 march in Minsk to demand resignation of Belarus leader

    100,000 march in Minsk to demand resignation of Belarus leader

    The 66-year-old strongman has refused to give in to protesters' demands to quit. Protesters have called for another major demonstration on Sunday.
  • Doom Eternal Official GeForce RTX 3080 4K Gameplay Video Revealed

    Doom Eternal Official GeForce RTX 3080 4K Gameplay Video Revealed

    The new GeForce RTX 3000 series will be officially launching in the coming months but in waves. So if you're looking to upgrade your gaming gear, you have a major choice to make.
    World Health Organization  recommends systemic corticosteroids for treatment of severe, critical COVID-19

    World Health Organization recommends systemic corticosteroids for treatment of severe, critical COVID-19

    REMAP-CAP is one of seven randomised control trials to test corticosteroids for treating Covid-19 in critically-ill patients. Researchers from three research groups have now published their findings that they had gathered in the journal JAMA .
    Five new virus cases, none in Christchurch

    Five new virus cases, none in Christchurch

    Thankfully, of those 121 cases, only one was recorded within the Interior Health region covering Kamloops, Kelowna and Penticton. The ECDC and National Public Health Emergency Team figures on 14-day incidence for Ireland can vary for several reasons.
  • Tenet nears $150 million mark worldwide

    In fourth behind it was the 2019 Japanese mystery "Masquerade Hotel" directed by Masayuki Suzuki, which opened to $1.4 million. The United States release hopes to capitalise on the important Labour Day weekend, with the holiday falling on yesterday.
    Doubles team out of U.S. Open due to quarantine order

    Doubles team out of U.S. Open due to quarantine order

    In a statement, the USTA said Nassau County public health officials issued a quarantine preventing travel to the US Open site. The players who were in contact with him have been told they would not be allowed to fly out of NY until next week.
    Multiple people injured in series of stabbings in England

    Multiple people injured in series of stabbings in England

    Police in Birmingham in central England said they were seeking a single suspect in relation to the series of stabbings. AM we were called to Irving Street where sadly one man lost his life and another man suffered serious injuries.
  • Australia extends Melbourne coronavirus lockdown despite drop in cases

    Australia extends Melbourne coronavirus lockdown despite drop in cases

    Victoria has been in a six-week lockdown since July to curb a coronavirus outbreak that has fuelled Australia's second wave. Victoria reported 76 new Covid-19 infections and 11 deaths on Saturday.
    Four people found dead in home east of Toronto, police say — NewsAlert

    Four people found dead in home east of Toronto, police say — NewsAlert

    The shooter is believed to be Loretta Traynor's brother, according to an online obituary posted in 2019 for their father. A police statement said he was a relative of the family living at the residence in Oshawa , Ontario.
    Kentucky Derby 2020: Authentic wins, gives Baffert tying 6th victory

    Kentucky Derby 2020: Authentic wins, gives Baffert tying 6th victory

    Since fans won't be able to descend on Churchill Downs for this year's Kentucky Derby , here's how they can catch all the action. Authentic's Hall of Fame trainer, Bob Baffert , now has six career Kentucky Derby victories, tying Ben Jones for most all-time.