GM stock has struggled in recent years despite profitability and heavy investments in electric vehicles, an area that markets have generally favored. However, with GM’s 11% or $2 Billion stake in Nikola, that perception is beginning to change.
The stake will act as a payment for GM’s commitment to manufacture Nikola’s flagship pick-up truck, The Badger, before 2023. Nikola will also gain access to GM’s Ultium Battery and its Hydrotech Fuel Cell.
This partnership highlights the competition the industry favorite, Tesla, will be facing as traditional car companies bring to bear their full resources to compete in and dominate the EV market. With advanced technology and production facilities ready to be converted, GM and others won’t be far behind for long.