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CEO and Founder of the US Nikola Trevor Milton
Massimo Pinca | Reuters
General Motors is giving up a potential 11% stake in Nikola and is abandoning plans to build electric truck maker Badger’s pickup as part of a smaller and reworked deal, the companies said on Monday.
In September, automakers announced a $ 2 billion deal that gave GM an 11% stake in Nikola for the supply of battery and fuel cell technologies as well as for production of the pickup truck.
The deal was due to be reached by September 30, but talks became more complicated following allegations of fraud against Nikola and its founder, Trevor Milton, who stepped down as executive chairman of the company on September 21. Since then, two women have also filed a complaint for sexual assault. claims with Utah authorities against Milton.
Nikola’s shares were down around 14% on the pre-market on Monday. The GM stock was down less than 1%.
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