G.M. Scales Down Nikola Deal

September’s announcement was widely interpreted as a seal of approval from G.M. It helped lift Nikola’s stock and investor confidence in the start-up’s ambitious plans to develop heavy trucks powered by hydrogen fuel cells and a national network of fueling stations.

But just days after the Sept. 8 partnership announcement, a small investment firm, Hindenburg Research, put out a report asserting that Nikola and its founder and executive chairman, Trevor Milton, had greatly overstated how much technology the company had developed. The report said that the company produced a video in which a truck was rolled down an incline to make it look as if the company had developed a working prototype. Later that month, Mr. Milton resigned.

Weeks after the Hindenburg report, G.M. said it had not closed its deal with Nikola as planned, and the companies continued to negotiate. The deal they announced on Monday was described as “a non-binding memorandum of understanding.” G.M. also said that Nikola would have to “pay upfront” for it to expand capacity to produce hydrogen fuel cells.

“Heavy trucks remain our core business,” Nikola’s chief executive, Mark Russell, said in a statement. “By working with G.M., we are reinforcing our companies’ shared commitment to a zero-emission future.”

G.M. and Nikola also said that they would discuss Nikola’s use of a G.M. battery system called Ultium for fully electric versions of the start-up’s heavy-duty trucks.

Article source: https://www.nytimes.com/2020/11/30/business/gm-nikola-electric-trucks.html