General Motors takes 11% stake in Nikola to team up on electric truck

General Motors and Nikola are teaming up to work on the Nikola Badger, a fully electric and hydrogen fuel cell electric pickup truck.

Posted 1:27 p.m. Sep 8, 2020 — Updated 1:27 p.m. Sep 8, 2020

Alexis Benveniste

, CNN Business

CNN — General Motors and Nikola are teaming up to work on the Nikola Badger, a fully electric and hydrogen fuel cell electric pickup truck.

The partnership gives General Motors an 11% stake in the startup, receiving $2 billion in equity, the companies said in a news release. GM will also get the right to nominate one director to Nikola's board.

Nikola shares rose more than 30% in premarket trading Tuesday on the news.

General Motors will be the exclusive supplier of fuel cells to Nikola's Class 7/8 trucks, in all areas besides Europe, the companies said.

The partnership is the latest move by GM to expand its electric vehicle alliances. Last week, GM announced that it was teaming up with Honda to to develop a range of electric and petroleum-powered vehicles.

"This strategic partnership with Nikola ... continues the broader deployment of General Motors' all-new Ultium battery and Hydrotec fuel cell systems," said General Motors CEO Mary Barra. "We are growing our presence in multiple high-volume EV segments while building scale to lower battery and fuel cell costs and increase profitability."

Suggest A Correction