Comment by yangchi
4 years ago
I think you read the $2B upside down. Nikola paid GM $2B worth of stocks (11% of the company) to have GM manufacture its vehicles, not the other way around
4 years ago
I think you read the $2B upside down. Nikola paid GM $2B worth of stocks (11% of the company) to have GM manufacture its vehicles, not the other way around
You're right I misread it - Nikola is paying GM. Sounds like a no-brainer for GM to accept.
Worst case, and let's be honest, modal case, Nikola goes under and GM has tech and parts that they can just use on their own anyway in their electric vehicles.
Even better for GM, they just acquire the whole thing and now they have a new brand to make their EV's under. GM could make a Chevy Volt 2x better than any Tesla, but Tesla will still sell better because of the brand identity. If you look at it like a branding/marketing deal then it makes a lot more sense from GM's perspective.
6 replies →
In addition to $700M from Nikola to cover the expenses of the work that GM is supposed/going to do for them.