Comment by nickik

GM likely knows this. They didn't buy 11% in the company. If you actually read the agreement its basically Nikola buys lots and lots and lots of stuff from GM and they pay part of that with that stock, but they also have to pay significantly in cash as well.

GM also would retain the right to all the fuel credits and those could be valuable.

If Nikola is successful, GM profits with a great deal. If its not GM doesn't actually lose much. only the time it engineers spent on cooperation with Nikola and potentially some tooling cost.