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Discussion Starter · #1 ·
Well it's official, GM is no longer planning on building the Nikola Badger. Instead they have reworked their deal with Nikola that focuses only on the fuel-cell partnership and gets rid of GM receiving an equity stake.


DETROIT -- General Motors and Nikola Corp. on Monday announced a reworked, smaller agreement that keeps the fuel-cell partnership intact but eliminates an equity stake in the startup for the Detroit automaker as well as plans for building Nikola's electric pickup truck.

In September, the companies announced a deal under which GM would supply batteries, a chassis architecture, fuel cell systems and a factory to build the startup's proposed Badger electric pickup in return for an 11 percent stake and $700 million. However, the deal came into question after a short seller attacked Nikola as a fraud, something the company denied.

The new deal, a non-binding memorandum of understanding, is subject to negotiation and a definitive deal, Nikola and GM said in separate statements.

Under the new agreement, GM will not take an equity stake in Nikola as originally planned. GM will supply its fuel-cell system for Nikola's Class 7 and Class 8 commercial semi-trucks, Nikola said. The companies are also discussing Nikola's potential use of GM's Ultium electric battery system in its commercial trailers.

Nikola's shares fell 15 percent in pre-market trading as of 8:37 a.m. ET.
 

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Well it's official, GM is no longer planning on building the Nikola Badger. Instead they have reworked their deal with Nikola that focuses only on the fuel-cell partnership and gets rid of GM receiving an equity stake.


DETROIT -- General Motors and Nikola Corp. on Monday announced a reworked, smaller agreement that keeps the fuel-cell partnership intact but eliminates an equity stake in the startup for the Detroit automaker as well as plans for building Nikola's electric pickup truck.

In September, the companies announced a deal under which GM would supply batteries, a chassis architecture, fuel cell systems and a factory to build the startup's proposed Badger electric pickup in return for an 11 percent stake and $700 million. However, the deal came into question after a short seller attacked Nikola as a fraud, something the company denied.

The new deal, a non-binding memorandum of understanding, is subject to negotiation and a definitive deal, Nikola and GM said in separate statements.

Under the new agreement, GM will not take an equity stake in Nikola as originally planned. GM will supply its fuel-cell system for Nikola's Class 7 and Class 8 commercial semi-trucks, Nikola said. The companies are also discussing Nikola's potential use of GM's Ultium electric battery system in its commercial trailers.

Nikola's shares fell 15 percent in pre-market trading as of 8:37 a.m. ET.
I cannot see a Nikola path to being a real company without GM's help, so I went short on the stock, nice profit the last couple days.
 

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I'm surprised GM is even doing this deal with Nikola. I can't imagine Nikola has anything with fuel cells for them to take.
 

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I'm surprised GM is even doing this deal with Nikola. I can't imagine Nikola has anything with fuel cells for them to take.

Ya, Nikola does not seem to have anything of value. Sad, that Trevor was such a scammer, I was hoping for GM to be able to pick their pocket to help pay for the Ultium development.
 

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Ya, Nikola does not seem to have anything of value. Sad, that Trevor was such a scammer, I was hoping for GM to be able to pick their pocket to help pay for the Ultium development.
All they had was their name, which I'm sure GM was hoping would provide hype for their Class 7/8 semis. The more semis they sell, the more money GM gets for battery/hydrogen tech. But now, you have to wonder if even the semis see the light of day.
 

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All they had was their name, which I'm sure GM was hoping would provide hype for their Class 7/8 semis. The more semis they sell, the more money GM gets for battery/hydrogen tech. But now, you have to wonder if even the semis see the light of day.

Ya, the originally announced deal would have been great for GM, they got $2B in Nikola stock in kind, and $700M in cash to pay for production engineering on the badger, which would have been built with mostly GM EV truck platform parts, and another thing I noticed in the agreement is GM got Nikola's ZEV credits to boot GM was also going to get a negotiated margin on all the parts sold to Nikola... WOW, It was a sweet deal (for GM). Without GM I just cannot see how Nikola can make production of anything, they just do not have the $$ or Talent.

I think GM at this point is much more bullish on EV's after they saw the Hummer EV excitement, they do not need to sell off their batteries & parts at this point.
 

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Discussion Starter · #8 ·
Inside EVs talks about GM dropping the Badger in their latest podcast. They start talking about at 1:02:22. They really dig into GM for not noticing anything wrong sooner.

 

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Inside EVs talks about GM dropping the Badger in their latest podcast. They start talking about at 1:02:22. They really dig into GM for not noticing anything wrong sooner.


I saw that, and agree with GM's due diligence not being deep enough, but the deal was a no lose for GM, not like they were paying Nikola anything or extending credit to Nikola, Nikola was putting all the $$ up front.
 

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Discussion Starter · #10 ·
I saw that, and agree with GM's due diligence not being deep enough, but the deal was a no lose for GM, not like they were paying Nikola anything or extending credit to Nikola, Nikola was putting all the $$ up front.
That's true, if they gave Nikola cash this would've be an absolute disaster rather than a small PR issue.
 
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