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General Motors abandoned alliance with Nikola, but will help with the release of tractors. And the Badger pickup is canceled
General Motors announced the signing of a Memorandum of Understanding with Nikola. The new agreement signifies the automaker’s abandonment of plans announced in September for a strategic partnership with the startup, in which GM was to supply traction batteries and fuel cell power plants for new Nikola 7/8 trucks, as well as provide technical support for the production of the Badger pickup. having received in return 11% of its shares.
Nikola Motor / Agence France-Presse – Getty Images
According to the Memorandum of Understanding, General Motors will still supply its fuel cells for the Nikola 7/8 class long-haul 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 Trucks 7 and 8.
And Nikola also announced that it no longer plans to release the Badger pickup. So it seems that the upcoming futuristic Tesla Cybertruck pickup will directly compete with itself, because initially it was Badger that was supposed to become its main competitor.
We add that the Memorandum of Understanding is a non-binding document, and the final terms of the deal will be determined after negotiations and additional documentation. Against the backdrop of this news, the startup’s shares fell in price by 20%.