General Motors feels confident about partnering with Nikola because they spent $2 billion to build a strategic partnership. With this deal, GM gets 11% of the ownership of this electric truck start-up business.
General Motors partners with Nikola
Nikola electric trucks just got pretty serious by merging with General Motors to secure lower battery and fuel cell costs. Through the deal, GM not only gained an 11% stake in the company but also received a seat on Nikola’s board of directors for the exchange of in-kind services.
One of the services includes helping Nikola produce their fuel cell pickup truck by the end of 2022. GM will also be the exclusive fuel cell supplier for the next seven out of eight electric pickup trucks.
GM and Nikola are confidently going green
Mary Barra, General Motors CEO, said, “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.”
So far, with this deal, Nikola has benefited with a 45% rise in trading, and GM went up 11% in pre-market trading. The deal will also help engineer, validate, and build the Nikola Badger pickup truck as GM takes over the manufacturing process.
With access to General Motors’ Ultium battery technology and multibillion-dollar fuel cell production program Nikola can fulfill two out of three promises to stakeholders ahead of schedule.
Nikola will be able to hit the market faster and gained decades of supplier and manufacturing knowledge, production-ready EV propulsion that has been tested and validated, world-class engineering, and investor confidence.
About the 2022 Nikola Badger
The 2022 Nikola Badger will offer electric and hydrogen-electric powertrains for a powerful, green pickup truck. While details are still under wraps, we can expect to see the Nikola Badger achieve a driving range of 600 miles with 906-hp and 980 lb-ft of torque. However, Nikola is scheduled to reveal more information on December 4, 2020.
The Nikola Badger will be powered by a 160.kWh battery pack and an optional 120.0-kWh fuel cell. It should have a continuous output of 455-hp and accelerate from 0 to 60 mph in 2.9 seconds.
Expect the Badger to operate on 40-percent grades and launch from a standstill at a 30-percent grade without stalling while pulling a fully loaded trailer with a gross combined vehicle weight rating (GCWR) of 18,000 lb.
However, Nikola has suggested that the Badger will be able to tow over 8,000 lb but hasn’t specified the maxim capacity or payload limit. Unless GM helps Nikola increase this number, it will fall short of the Tesla Cybertruck and Rivian R1T. Information about the interior, technology, and trim levels is still unknown.
Nikola has been taking deposits for the trucks that range between $250 to $5,000. The Badger EV is expected to start around $60,000, while the Badger Fuel-Cell EV begins at about $80,000. However, based on the number of deposits received, the price could be reduced. The deposited amount may also be matched with a rebate.