It is the alliance of two generations of the American automobile: General Motors and Nikola unite to create an electric pickup. Production is due to start in two years.
The craze around You're here
visibly arouses jealousy. The giant General Motors (GM)
– which is worth almost ten times less on the stock market than Elon Musk's company – has decided to collaborate with the manufacturer of electric utility vehicles Nikola
. Both wish produce their own pick-up model, the Nikola Badger, which will run entirely on electricity and hydrogen gas. It should go into production by the end of 2022.
"GM is making a major strategic bet for the next decade in the electric vehicle and fuel cell segment."
As part of this alliance, General Motors will take an 11% stake in Nikola – via the creation of $ 2 billion in new shares – and got the right to appoint a person to the board of directors. In exchange, the young builder plans to save more than $ 4 billion in research and development costs over the next ten years. He will be paid to build the Badger, provide batteries, and start marketing fuel cell technology.
“General Motors' stake in the Nikola Group – a $ 13 billion market cap company with no revenues or salable vehicles so far – is a hedge against the risk of not selling enough non-thermal vehicles. Nikola is no further ahead than GM, but the partnership will strengthen brand awareness for the legacy automaker, ”said Kevin Tynan, senior auto analyst at Bloomberg Intelligence.
A "huge" boost in credibility
For Nikola, the partnership with General Motors allows him to gain credibility while only starting to produce its first vehicles. "There have been many skeptics surrounding the ambitions of Nikola and its founder, Trevor Milton," recalls Dan Ives, analyst at Wedbush Securities. "This announcement is therefore a huge boost for Nikola. GM is making a major strategic bet for the next decade in the segment of electric vehicles and fuel cells."
The Badger – whose prototype was presented last February by Nikola – should itself sell between $ 60,000 and $ 90,000. Which analysts say could be a profitable niche in the American pick-up market. Ambitious businessman Trevor Milton also hopes he will one day compete with Ford Motor's F-150
, which has been the best-selling pickup on the other side of the Atlantic for 43 years.