Nikola Motor Company, a startup car company working with hydrogen-fuel cell technology, has announced a partnership with General Motors.
The multi-billion dollar deal could radically change the future of Nikola, allowing the smaller company access to GM’s considerable infrastructure and resources. It could also pose Nikola as the foil to Telsa, the high-flying electrical car company run by CEO Elon Musk.
But Nikola may have a long way to go towards fulfilling its potential yet, a new report released Thursday suggests.
Announced on September 8th, the deal sees GM taking an 11 percent stake in Nikola through stock, which is estimated to be worth around $11 billion. In return, GM is giving the car company batteries, chassis architecture, fuel-cell systems, and even a factory in support of its proposed truck, the Nikola Badger.
Nikola Founder and Executive Chairman Trevor Milton was exuberant about the deal, proclaiming in a press statement that “You couldn’t dream of a better partnership than this. By joining together, we get access to their validated parts for all of our programs, General Motors’ Ultium battery technology and a multi-billion dollar fuel cell program ready for production.”