The Nikola Badger has not reached the production stage. Nikola would only build the fully electric or hydrogen-powered pickup with the help of General Motors. However, following the recent fuss surrounding Nikola, the deal between the two parties has been considerably thinned.
General Motors (GM) and Nikola will continue to work together, but now do so under a ‘non-binding memorandum of understanding’, which is in fact nothing more than a letter of intent. The two parties have issued a statement on this separately. Under this agreement, the two parties are working together to implement GM’s Hydrotec technology in Nikola’s yet to be announced trucks. A possible implementation of GM’s Ultium battery technology in the trucks is also under consideration. However, GM will not buy a stake in Nikola and will therefore only supply the technology in the long term. GM’s production of the Badger will also not take place in the new agreement.
The latter means that Nikola will let go of the pick-up. In its statement, the start-up indicates that interested parties who have already paid a deposit will receive their money back. With this deal, GM still gives a small token of confidence to Nikola, but the group will definitely not be fooled. GM’s statement states that Nikola will have to pay a margin still to be determined for the technology and that the start-up will have to pre-dock the investments involved in freeing up additional production capacity. Furthermore, the fact that GM suddenly no longer needs to have a share in Nikola is of course telling. As a result of the announcement, the Nikola share also fell in value by more than 15 percent.
Fraud?
The considerably stripped down deal between GM and Nikola follows the fuss that has arisen around the start-up. Hindenburg Research has accused Nikola of deception, but the company has always denied this. In the meantime, founder Trevor Milton has withdrawn from the company. Nikola CEO Mark Russell said earlier that he would also be fine without the help of GM. However, little seems to be left of that claim now. Nikola says it will test the hydrogen-powered truck at the end of 2021. Time will have to tell what will actually become of the company in the future.