Nikola Tumbles After GM Deal Drops Equity Tie, Plug-In Truck
- Reworked deal drops GM equity stake, planned electric pickup
- Shares of Nikola plunge as low as 27% in trading Monday
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General Motors Co. has scrapped a tentative plan to take a stake in clean-energy trucking startup Nikola Corp. and jointly build an electric pickup truck, opting instead for a much narrower relationship between the two companies.
Under terms of a pact announced Monday, GM will allow Nikola to use its hydrogen fuel-cell technology in planned semi trucks. The deal doesn’t include GM owning Nikola shares, a reversal from a proposed 11% equity stake outlined in September. The new arrangement also drops plans for GM to manufacture a battery-powered pickup for Nikola called the Badger.