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General Motors and Nikola, a high-profile start-up aiming to produce electric trucks, said on Monday they had reached an agreement to work together solely on hydrogen fuel cells, replacing a larger alliance they had initially defined in September.
The new deal asks GM to sell the fuel cell technology to Nikola. Gone are the arrangements for GM to take a $ 2 billion stake in Nikola and GM to produce an electric pickup truck for the Phoenix-based company. Nikola said he no longer plans to produce this pickup, the Badger.
The September announcement had bolstered the confidence of Nikola’s stocks and investors in the startup’s ambitious plans to develop heavy-duty trucks powered by hydrogen batteries and a nationwide network of gas stations.
But just days after the partnership was announced on September 8, a small investment firm released a report claiming that Nikola and its executive chairman, Trevor Milton, had vastly overestimated the amount of technology developed by the company. Later that month, Mr. Milton resigned.
Nikola’s stock was down around 20% in morning trading.
This is a developing story. Check back for updates.
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