GM has dropped its plan to construct the Nikola (NKLA) Badger electrical/gas cell pickup truck and take a stake within the controversial firm.
Nonetheless, GM will nonetheless provide Nikola with gas cell hydrogen know-how for its semi vans.
As we’ve been reporting over the previous few months, Nikola is presently in scorching water after a report from Hindenburg Analysis made several allegations exposing deception by Nikola and its founder Trevor Milton, together with a number of claims corroborated in earlier reviews from Electrek and Bloomberg.
Nikola issued a response to these claims, however as we reported, the response lacked any rebuttal of the main allegations of deception by the corporate and its founder, Milton.
For probably the most damning one, the declare that it faked the primary video of its hydrogen truck driving, the corporate even admitted to it with out issuing an apology and, as a substitute, claimed its deception was superb resulting from a technicality.
Milton ended up leaving the corporate because the strain began to extend.
All these revelations got here within the wake of the announcement that GM was partnering with Nikola to deliver its electric-hydrogen pickup, the Badger, to market and taking a stake within the firm.
The deal, which concerned GM offering its battery and gas cell know-how to Nikola, sparked a variety of controversy since Nikola had beforehand claimed to have developed its personal tech in these areas.
GM has been criticized for partnering with an organization missing credibility and attempting to justify its deception.
We’ve got reached out to GM following the revelations, however the firm has all the time backed Nikola amid the deception and claimed that it did sufficient due diligence.
Nonetheless, GM gave the impression to be considering walking away from the deal in the previous few weeks.
Now GM and Nikola have launched a joint announcement confirming that the unique deal to accomplice on making the Badger electric-hydrogen pickup is off, however they’re nonetheless partnering on the semi vans:
“The settlement between Nikola and GM is topic to negotiation and execution of definitive documentation acceptable to each events. The MOU doesn’t embrace the beforehand contemplated GM fairness stake in Nikola or the event of the Nikola Badger. As beforehand introduced, the Nikola Badger program was depending on an OEM partnership. Nikola will refund all beforehand submitted order deposits for the Nikola Badger.”
As we beforehand reported, the Nikola Badger challenge originated from Nikola’s Milton not liking the Tesla Cybertruck.
Earlier than Tesla unveiled the Cybertruck final 12 months, Milton tweeted renders of a pickup truck that the corporate created and steered that Tesla might use these for the Cybertruck since Nikola didn’t plan to construct a pickup truck.
The remark gave the impression to be tongue-in-cheek since Nikola additionally accused Tesla of stealing its design for its electrical semi-truck.
Nonetheless, after Tesla unveiled the Cybertruck and its polarizing design, Milton stated that he deliberate for Nikola to construct the automobile, named Badger.
In February, Nikola announced its plans for the Badger with a battery/fuel-cell hybrid powertrain enabling 600 miles of vary, 0-60 mph acceleration in 2.9 seconds, and launched a couple of renders.
A number of months later, Nikola started taking $100 to $5,000 deposits for the pickup truck and launched an enormous advertising and marketing marketing campaign to attempt to accumulate reservations, together with via a partnership with the Diesel Brothers that noticed them receiving beneficiant quantities of shares once they generated orders.
Whereas many of the beforehand introduced deal between GM and Nikola revolved across the Badger, it additionally concerned GM supplying Nikola with its hydrogen gas cell know-how for its upcoming semi vans.
That deal remains to be occurring in keeping with a brand new non-binding memorandum of understanding signed in the present day.
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