G.M. Scales Down Nikola Deal
Normal Motors and Nikola, a high-profile start-up aiming to supply electrical vans, mentioned on Monday that that they had reached an settlement to work collectively solely on hydrogen gasoline cells, changing a broader alliance they initially outlined in September.
The brand new settlement requires G.M. to promote fuel-cell expertise to Nikola. Gone are provisions for G.M. to take a $2 billion stake in Nikola, and for G.M. to supply an electrical pickup truck for the Phoenix-based firm. Nikola mentioned it now not deliberate to supply that pickup, the Badger.
September’s announcement had lifted Nikola’s inventory and investor confidence within the start-up’s formidable plans to develop heavy vans powered by hydrogen gasoline cells and a nationwide community of fueling stations.
However simply days after the Sept. 8 partnership announcement, a small funding agency put out a report asserting that Nikola and its govt chairman, Trevor Milton, had drastically overstated how a lot expertise the corporate had developed. Later that month, Mr. Milton resigned.
Nikola’s inventory was down about 20 p.c in premarket buying and selling on Monday.
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