Daily Management Review

General Motors refuses to buy a stake in electric cars manufacturer Nikola


General Motors announced that it is revising its agreement with electric vehicle maker Nikola Motor: GM is no longer going to buy a stake in the company. Nikola shares fell 25% after the current announcement.

In September, GM announced its intention to buy 11% of Nikola's shares for $ 2 billion. After that, Nikola's shares grew by 40%, and they started talking about a small manufacturer of electric vehicles using hydrogen batteries. However, soon after that, it became known about an investigation into the company - it was started by the Department of Justice and the US Securities and Exchange Commission.

Nikola's management was accused of fraud and misleading investors about their technological developments in order to attract other car manufacturers to cooperate.

The new agreement between GM and Nikola is a non-binding memorandum of intent that now deals with the supply of GM fuel cell systems for Nikola vehicles. The parties will also discuss the supply of the Ultium batteries developed by GM.

To date, Nikola, launched in 2014, has released several electric truck concepts for serial production in 2021–2023, and has introduced the Badger electric SUV with hydrogen batteries.

source: gm.com