General Motors produces electric cars and supplies batteries for Nikola

by:CTECHi     2021-08-26
DETROIT – General Motors announced on Tuesday its second major electric vehicle partnership in less than a second week, this time in a $2 billion deal with the start-up company Nikola. General Motors will acquire an 11% stake in Phoenix, and will design and manufacture Nikola’s Badger hydrogen fuel-powered batteries and electric trucks. Ger is expected to be put into production at the end of 2022. GM will also help reduce the cost of Nikolai's other vehicles (including heavy trucks), and the company will use GM's battery system and hydrogen fuel technology. In exchange for a 10-year transaction, General Motors will receive Nikola’s newly issued common stock worth $2 billion, which will triple by 2025. This move allows General Motors to obtain a new source of revenue, and may change its business model, fundamentally becoming a supplier of parts for other companies' electric vehicle frames, batteries, controllers and components. General Motors has been under pressure from Wall Street to monetize its electric vehicle technology more quickly, perhaps by splitting its electric vehicle division into an independent company. Barra said on the conference call that GM has “a platform that others can use, which will bring us scale and help us improve efficiency.” She said that electric vehicle platforms and batteries are attractive to other companies. It is a huge opportunity for General Motors. She said: 'We will take advantage of this and really seize the opportunity we have to grow.' However, she will not comment on whether General Motors is negotiating with other companies. Nikola will be responsible for Badger's sales and marketing, but it will be based on GM's new battery electric truck and use GM fuel cell and battery technology. GM will also supply batteries for other Nikola vehicles (including heavy trucks). General Motors has its own battery electric truck GMCHummer, which will be on sale a year before the. In Tuesday afternoon trading, Nikola's stock price rose nearly 50% to $53.32, while General Motors stock price rose nearly 11% to $33.16. This transaction is the second important partnership announced by General Motors this month, as it will enable the company to share the cost of developing electric and autonomous driving technologies. General Motors said on Thursday that it will share the cost of building vehicles powered by batteries and internal combustion engines with Japanese automaker Honda. General Motors hopes to obtain more than 4 billion U.S. dollars in revenue through the transaction with this stock and the manufacturing contract with the contract. GM will also receive supply contracts for batteries, fuel-power batteries, and electric vehicle regulatory credits, which GM can use to meet fuel economy and pollution standards, or sell to other companies. GM CEO Mary Barra said in a statement: 'We are expanding our business in multiple high-volume electric vehicle (EV) areas, while expanding our scale to reduce battery and fuel power cell costs and increase Profitability.” Trevor Milton, founder and executive chairman of Nikola, said that the agreement allows his company to avoid the cost of building another factory to manufacture the expense, which is more expensive than Chevrolet. Silverado is bigger. However, Nikola will continue to build a US plant in Coolidge, Arizona to manufacture heavy trucks. Nikola Corp. (Nikola Corp.) is not yet profitable and lost $86.6 million in the second quarter. The company expects to save more than $4 billion in battery and powertrain costs within 10 years. Wedbush analyst Daniel Ives (Daniel Ives) wrote in a report to investors on Tuesday that the deal is a huge step forward for Nicholas, which allows the company to produce its hydrogen fuel power in Badger. Creditworthy in terms of battery and semi-truck ambitions.
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