Nikola Motor Company this morning received a huge injection in capital thanks to the folks over at General Motors. In a massive $2 billion equity purchase deal, GM is now 11% owner of the electric and hydrogen company.
According to Bloomberg, “GM will make in-kind contributions to take an 11% stake in Nikola and get the right to nominate one director to the company’s board.”
As part of the deal, General Motors will be paid to manufacture the Nikola Badger pickup truck and supply electric vehicle batteries and fuel cells to Nikola.
Nikola gains the legitimacy of a legacy automaker investor and a cash injection boost that is always appreciated when starting a company.
The Badger pickup is expected to be revealed later this year at an event dubbed Nikola World, and production should begin in 2022.
General Motors is expected to debut the Hummer EV later this year, and introduce quite a few new models of electric vehicles in the next couple of years.