The Strategist

GM invests $ 2B in electric car maker Nikola

09/09/2020 - 03:15

The largest US auto concern General Motors has announced purchase of an 11% stake in Nikola, an electric vehicle manufacturer, for $ 2 billion. In addition to the stake in the company, GM has received the right to appoint one person to its board of directors.

Nikola Motor Company
Nikola Motor Company
Nikola Motor company was founded in 2014, the name was given in honor of the name of the inventor Nikola Tesla. The company initially set the goal of producing vehicles without hydrocarbon emissions.

To date, Nikola Motor has released several electric truck concepts, with serial production expected in 2021–2023. For retail consumers, the company introduced Badger electric SUV with hydrogen batteries. The company expects to begin batch production of Badger by the end of 2022.

Investors reacted with optimism to the news about the beginning of cooperation between the largest US auto concern and the manufacturer of electric vehicles on hydrogen batteries: after the announcement, GM shares increased in price by 10%, Nikola shares - by 40%.