GM Buys Stake in Nikola
Zero emissions truck producer Nikola saw its stock price jump more than 40% after General Motors acquired an 11% stake in the company. GM’s price was also boosted by the announcement gaining nearly 8%.
Nikola made headlines earlier this year for achieving a valuation of over $20 billion despite very little revenue. The $36,000 revenue they reported last quarter came from installing solar systems for their founder.
The partnership is a great match. Nikola will provide GM with an asset in the zero emissions space as GM attempts to diversify, and GM will provide Nikola with years of supplier and manufacturing experience. The two hope to have the Badger, the marquee hydrogen fuel cell electric pickup truck, ready for production by the end of 2022.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.