Thursday, 19 November 2020 19:48

GM-Nikola Partnership Talks Hit Standstill as Termination Date Looms

Written by Joey Klender, Teslarati


General Motors’ partnership with Nikola Motors has remained stagnant as the deal’s termination date moves closer, reports indicate.

GM and Nikola first agreed to work together to develop battery and fuel cell electric vehicles in early September. GM was set to receive a $2 billion equity share in Nikola and invest $4 billion in battery and powertrain costs over the next 10 years.


However, things didn’t go according to plan, as a report from Hindenburg Research revealed Nikola was not honest in its display of the Nikola One semi-truck. The report labeled the automaker “an intricate fraud” and revealed it had been misleading in its vehicles’ displays.


Afterward, CEO Trevor Milton stepped down from his post, and the partnership between the two companies was put into question. GM has not made any strides toward finalizing the partnership, and a Nikola representative said Nov. 18 that talks have not moved whatsoever since late September.


As a result of the stagnated talks, speculation persists that the two companies may have trouble finding common ground on what the advantages may be moving forward.


For one, GM is expected to funnel a substantial $6 billion into Nikola, which has yet to release a functional vehicle to consumers. Additionally, the 10-year contract would...

Previous Page Continue reading »

Read 401 times