General Motors and Nikola have announced a modification of their agreement reached in September and the company that Mary Barra runs will not finally enter the shareholding of the electric vehicle manufacturer.
Both companies reported at the time of a strategic partnership through which the US group will receive 2,000 million dollars (1,695 million euros) in Nikola common shares in exchange for access to components and technologies. The Detroit-based consortium (United States) did this with 11% of the startup and would be in charge of the design, homologation, validation and manufacture of the Nikola Badger, both in its electric and fuel cell versions.
However, negotiations went awry after the Hindenburg Research fund accused Nikola of being a “fraud” and took a short position on her. Specifically, it included in a report several accusations stemming from phone calls, text messages, private emails, employee testimonials and public statements. “We have never seen this level of deception in a listed company, especially of this size,” the fund said.
In this way, they have announced this Monday that they have signed a non-binding memorandum of understanding for a supply agreement for the Hydrotec fuel cell technology that will incorporate the Nikola Class 7/8 models.
This new agreement does not expire until the end of 2021 and is still subject to negotiation. The firms have also explained that they are discussing Nikola’s potential use of General Motors’ Ultium battery system and, according to the Detroit-based consortium, Nikola will pay in advance for the capital investment required for the fuel cell capacity.
Investors have not looked favorably on this new deal: Nikola’s shares are down more than 26% to $ 20.63 (17.21 euros) per share, while General Motors’ shares are down 2.66%, up to $ 43.86 per unit (36.58 euros).