Slow lane

30 Nov 2020 By Anna Szymanski

The $65 billion automaker says it will sell its fuel-cell tech to the troubled zero-emissions-truck company, but has shelved plans to take an equity stake. Cutting ties or doubling down with Nikola, whose value halved since early September, would have been bolder choices.

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General Motors and zero-emissions-truck company Nikola on Nov. 30 released a non-binding agreement for the U.S. automaker to supply its fuel-cell system for Nikola’s trucks.

In a change from an earlier agreement between the two, GM will not take an 11% equity stake or build Nikola’s electric pickup truck.

Nikola will pay upfront for the capital investment needed for the fuel-cell capacity, and may also use GM's Ultium electric battery system in commercial trailers.

In September, short seller Hindenburg Research published a report on Nikola in which it labeled the company a fraud. Nikola has denied this allegation.

Nikola’s shares fell around 26% on Nov. 30 during afternoon trading.

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