By Michael Dabaie
Nikola Corp. and General Motors Co. said they are in a strategic partnership to make an electric pickup truck.
Nikola shares were up 29% to $46.03 premarket trade Tuesday.
Nikola designs and makes battery-electric and hydrogen-electric vehicles, electric vehicle drivetrains, vehicle components, energy storage systems, and hydrogen station infrastructure. The partnership with GM will begin with the Nikola Badger electric pickup truck, the companies said.
As part of the deal, Nikola will use GM's Ultium battery system and Hydrotec fuel cell technology.
GM will engineer and manufacture the Nikola Badger, the companies said.
General Motors will receive 11% ownership of Nikola and right to nominate one director.
Nikola will exchange $2 billion in newly issued common stock for the in-kind services and access to General Motors' parts and components.
Nikola will be responsible for the sales and marketing for the Badger and will retain the Nikola Badger brand. Badger production is expected to start in late 2022.
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