Nikola (NKLA) and General Motors (GM) are collaborating to take on Tesla’s cybertruck.
The electric truck startup reported Tuesday it has chosen GM to be its assembling parter for its electric pickup truck named the Badger. The Badger will use GM’s generally acclaimed Ultium battery technology. Moreover, Nikola will hand over $2 billion in stock to GM — giving the automaker a 11% stake in the organization.
Shares of Nikola and GM rose 40% and 8%, respectively on the tie-up.
“General Motors was the perfect fit,” Nikola founder executive chairman and CEO Trevor Milton told Yahoo Finance’s The First Trade.
Included GM Chairman and CEO Mary Barra, “What we’re focused on is creating an all electric future and this announcement is very important today because it shows another very strong validation of our technology, our hydrogen fuel cell technology as well as our ultium batteries.”
So far, the Badger has been a simple rendering that has lit-up social media feeds.
The organization began taking pre-orders for the electric super pickup truck in late June. On paper, the truck stands to be a monster. It’s relied upon to have 906 horsepower and have a 600-mile range using both battery and hydrogen fuel cells. Nikola has said pricing will begin at $60,000 for the electric vehicle version and $90,000 for the one that likewise incorporates the hydrogen cell.
The Badger is relied upon to be disclosed toward the beginning of December. Production has been set for 2022.