General Motors abandoned its alliance with Nikola
|General Motors announced the signing of a Memorandum of understanding with Nikola. The new agreement means that the automaker abandoned plans announced in September for a strategic partnership with the startup, under which GM was to supply traction batteries and power plants with hydrogen fuel cells for the new Nikola class 7/8 trucks, as well as provide technical support for the production of the Badger pickup truck, receiving in return 11% of its shares. |
According to the Memorandum of understanding, General Motors will still supply its fuel cells for Nikola class 7/8 mainline trucks. As previously announced, Nikola plans to begin testing prototypes of its hydrogen fuel cell trucks for mass production by the end of 2021, with beta prototype testing expected to begin in the first half of 2022. In addition, Nikola and GM intend to discuss the possibility of using the GM Ultium universal battery system in Nikola class 7 and 8 trucks.
And Nikola said that it no longer plans to release a Badger pickup truck. So it seems that the upcoming futuristic pickup truck Tesla Cybertruck will directly compete with itself, because initially it was Badger that was supposed to be its main competitor.
We add that the Memorandum of understanding is a non-binding document, and the final terms of the transaction will be determined after negotiations and additional documentation. Against the background of this news, the startup's shares fell in price by 20 %.
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