{"id":123066,"date":"2020-11-30T19:05:34","date_gmt":"2020-11-30T16:05:34","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/gm-walks-away-from-stake-in-electric-vehicle-maker-nikola\/"},"modified":"2020-11-30T19:05:34","modified_gmt":"2020-11-30T16:05:34","slug":"gm-walks-away-from-stake-in-electric-vehicle-maker-nikola","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/gm-walks-away-from-stake-in-electric-vehicle-maker-nikola\/","title":{"rendered":"#GM walks away from stake in electric vehicle maker Nikola"},"content":{"rendered":"

“#GM walks away from stake in electric vehicle maker Nikola<\/strong>”<\/p>\n

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\n This Jan. 27, 2020, file photo shows a General<\/a> Motors logo at the General Motors Detroit-Hamtramck Assembly plant in Hamtramck, Mich. General Motors has effectively canceled a $2 billion agreement with truck maker Nikola, scuttling plans for the startup’s electric and hydrogen-powered Badger project. (AP Photo\/Paul Sancya, File)
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General Motors will not be taking a stake in the electric vehicle company Nikola which announced Monday that it would scuttle one of its marquee vehicles, an electric and hydrogen-powered pickup that was to be called the Badger.<\/p>\n

Shares of Nikola plunged 21% at the opening bell.<\/p>\n

Nikola on Monday released updated terms between the companies for a supply agreement related to GM’s fuel-cell system, replacing an agreement signed in September. That deal would have given GM an 11% stake in Nikola.<\/p>\n

The earlier agreement would have allowed Nikola to use GM’s new battery electric truck underpinnings for the Badger and its fuel cell and battery technology<\/a> as well. But that is no longer part of the agreement.<\/p>\n

With that end of the partnership now gone, Nikola said Monday that it will begin refunding deposits made by customers who wanted first dibs on the company’s pickup truck.<\/p>\n

“In a nutshell, the signing of GM as a partner is a positive but ultimately no ownership\/equity stake in Nikola and the billions of R&D potentially now off the table is a major negative blow to the Nikola story,” said Wedbush analyst Dan Ives. “This went from a game<\/a> changer deal for Nikola to a good supply partnership but nothing to write home about.”<\/p>\n

However, there were tremors under the potential partnership in late September. GM cast doubt on whether the $2 billion partnership would close as scheduled, saying that discussions with Nikola were ongoing.<\/p>\n

That announcement, which sent Nikola shares sliding, came just days after Nikola founder and Chairman Trevor Milton resigned after a Hindenburg Research, a company that’s betting Nikola stock will drop, accused Nikola of Fraud. Nikola denies the allegations and called them misleading.<\/p>\n

Hindenburg said Nikola’s success was an “intricate fraud,” including a video showing a truck rolling downhill to give the impression it was cruising on a highway, and stenciling the words “hydrogen electric” on the side of a vehicle that was actually powered by natural gas.<\/p>\n

The Securities and Exchange Commission and the Justice Department are reportedly investigating. GM has said it did proper due diligence before entering the partnership.<\/p>\n

Nikola said Monday that its work on heavy trucks will continue. And GM will still be part of a global supply agreement that would integrate GM’s Hydrotec fuel-cell system into Nikola’s commercial semi-trucks.<\/p>\n

“Heavy trucks remain our core business and we are 100% focused on hitting our development milestones to bring clean hydrogen and battery-electric commercial trucks to market,” said CEO Mark Russell.<\/p>\n

Nikola is based in Phoenix.\n <\/p>\n\n

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Closing date of GM-Nikola partnership may be delayed\n <\/p><\/div>\n

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\n \u00a9 2020 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.<\/p>\n

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\n GM walks away from stake in electric vehicle maker Nikola (2020, November 30)
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