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General Motors (NYSE: GM) is acquiring a $2 billion stake in the launch of Nikola trucks (NASDAQ: NKLA) and has agreed to build Nikola’s Badger electric truck.
In addition, GM will acquire batteries and fuel cells for Nikola’s electric tractor-trailers, corporations announced.
In exchange for $2 billion in newly issued Nikola shares and a position on Nikola’s board of directors, GM will provide Nikola with an “matrix in kind. “These will come with the engineering and progression paints needed to prepare the Badger truck for production, as well as for access to GM’s global portion container, adding GM’s new Ultium electric vehicle battery formula and GM Hydrotec hydrogen fuel cells in a joint venture with Honda Motor (NYSE: HMC).
Under this agreement, GM will be exclusive to Nikola’s fuel cells in all regions of the world, with the exception of Europe (where Nikola has already signed an agreement with CNH Industrial’s IVESCO unit (NYSE: CNHI)).
While Nikola will pay GM separately for batteries and fuel cells, and for outsourcing the Badger truck, Nikola said he plans to save more than $4 billion in battery and propulsion system prices over the next 10 years and more than $1 billion in engineering and validation. . the prices at which you would have incurred otherwise if the Badger and other parties had evolved.
GM said it expects to get more than $4 billion from the deal, adding the loss of the Badger, the manufacturing payment of its batteries and fuel cells, the net worth of its stake in Nikola, and the electric vehicle tax credits it will retain for the duration of the contract.
GM’s stake in Nikola will be subject to a step-by-step blocking arrangement, meaning GM will be able to sell its Nikola shares in stages, starting a year and ending in June 2025.