Nikola shares surge 30% after General Motors takes 11% stake in electric truck maker

General Motors is taking an 11% stake in electric truck maker Nikola, agreeing to build its hydrogen fuel cell electric pickup truck the Badger by the end of 2022.

Nikola’s shares surged by about 30% in premarket trading while GM jumped by almost 9%. 

GM is getting a $2 billion stake in Nikola in exchange for in-kind services and will become the exclusive supplier of fuel cells globally outside of Europe to Nikola for Class 7/8 truck.

“This strategic partnership with Nikola, an industry leading disrupter, continues the broader deployment of General Motors’ all-new Ultium battery and Hydrotec fuel cell systems,” said GM CEO Mary Barra said in a statement.

Nikola founder and Executive Chairman Trevor Milton said the partnership gives Nikola access to GM’s validated parts as well as its Ultium battery technology and a multibillion dollar fuel cell program.

“Nikola immediately gets decades of supplier and manufacturing knowledge, validated and tested production-ready EV propulsion, world-class engineering and investor confidence,” Milton said in a statement. “Most importantly, General Motors has a vested interest to see Nikola succeed.”

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