GM Bails on Nikola
November 30, 2020
General Motors has signed a non-binding memorandum of understanding with Nikola Corporation for a global supply agreement to provide its Hydrotec fuel cell system for Nikola’s Class 7/8 semi-trucks. The MoU replaces the previous transaction announced Sept. 8, 2020.
Nikola shares tanked 26% in trading Monday morning after GM noted that it gave up an equity stake in the electric truck start-up. Plans to build the Badger, Nikola’s pickup truck for consumers were dropped. In September, the automakers made a $2B agreement which gave GM an 11% stake in Nikola to supply battery and fuel cell technologies as well as produce the Badger pickup.
“This supply agreement recognizes our leading fuel cell technology expertise and
development,” said Doug Parks, GM executive vice president of Global Product
Development, Purchasing and Supply Chain. “Providing our Hydrotec fuel cell
systems to the heavy-duty class of commercial vehicles is an important part of
our growth strategy and reinforces our commitment toward an all-electric,