NEW YORK: General Motors drove further into the world of electric vehicles, announcing a manufacturing partnership Tuesday with electric truck company Nikola in the latest cost-sharing venture.
As more automakers join forces to develop ambitious new technologies, the old-school auto giant will help the Arizona-based startup with battery and fuel cell technologies initially for the Nikola Badger pickup truck, and later for its larger commercial vehicles, the companies said in a joint statement.
In exchange, GM will receive an 11 percent stake and a seat on the board of Nikola, which plans to start producing the Badger by the end of 2022.
The announcement produced an immediate windfall for investors in Nikola, worth $2 billion, whose shares surged by around 50 percent. GM shares also advanced solidly on a down day for Wall Street. GM and other US automakers are spending billions to develop new electric vehicles at the same time the industry is also investing heavily in autonomous technologies.
Comments
Comments are closed.