GM, Nikola Agree to Scaled-Down Supply Agreement -- Update
November 30 2020 - 9:08AM
Dow Jones News
By Mike Colias
General Motors Co. will supply fuel cells to Nikola Corp. for
commercial trucks but will no longer take an equity stake in the
startup under a stripped-down agreement, Nikola said Monday.
The electric-truck company also said it has scrapped plans to
build a pickup truck named the Badger, which had been part of an
earlier deal with GM outlined in September. That deal got delayed
after a negative short seller's report raised questions about the
readiness of some aspects of Nikola's business, allegations the
company claimed were false and misleading.
Nikola shares were down 3.4% in premarket trading Monday. GM
shares were off about 0.8%.
Under their original deal, GM was to take an 11% equity stake in
the Phoenix-based startup in exchange for supplying engineering
work and other services. GM also was to engineer and build an
electric pickup truck for retail customers, the Badger, using the
auto maker's proprietary technology for battery-powered
vehicles.
Write to Mike Colias at Mike.Colias@wsj.com
(END) Dow Jones Newswires
November 30, 2020 08:53 ET (13:53 GMT)
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