Nikola founder: Partnership with GM will bring $10B of savings for our company
Nikola founder and Executive Chairman Trevor Milton discusses working with General Motors on a new electric truck, called The Badger.
It looks like investors will need to remain patient as conversations between Nikola Corp. and General Motors are continuing after a strategic partnership agreement was announced in September.
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"The transaction has not closed, and Nikola is continuing its discussions with General Motors," the company wrote in its third-quarter earnings report Monday. "Nikola will provide further updates when appropriate or required."
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The deal may provide GM with an 11% equity stake in the electric vehicle maker in exchange for "various in-kind services."
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The announcement echoes similar comments made by General Motors CEO Mary Barra last week.
"As you're aware, we've been in ongoing discussions with Nikola about a commercial transaction. The transaction has not yet closed, and we will provide further updates at the appropriate time," Barra said on GM's earnings call. "We are exploring all opportunities to commercialize our Ultium battery system as well as the Hydrotec hydrogen fuel cells we have developed with Honda. We have invested heavily in developing and manufacturing fuel cells. Commercialization of our Ultium battery system and hydrogen fuel cells reflects that commitment and our commitment to a 0 emissions future."
If a deal is not closed by Dec. 3, either party can terminate it.
General Motors previously announced it would collaborate on Nikola's Badger pickup truck as part of the partnership. Tesla is also building its Cybertruck.
Former executive chairman Trevor Milton told FOX Business that the company expects the partnership with GM to result in almost $10 billion in savings across the board. In September, Milton left the company after allegations of fraud.
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Nikola's new CEO Mark Russell noted that the company also made "significant progress on key milestones" in the third quarter, including delivering on its commitment to assembling the first Nikola Tre BEV prototypes, and working with its customers on prospective and previously announced BEV truck orders.
The company said it began assembling the first five Tre electric trucks at vehicle manufacturer IVECCO's Ulm, Germany, plant and that it remains on track to start production in late 2021.