GM invests 11% stake in hydrogen truck maker Nikola... Stock price rises 29%

Nikola Pickup Truck Development and Production Collaboration Between Two Companies
Alliance Formed Between Startup and Traditional Automaker

[Asia Economy New York=Correspondent Baek Jong-min] American automaker General Motors announced on the 8th (local time) that it will acquire an 11% stake in Nikola, a hydrogen truck company listed on the Nasdaq market. As a result, the stock prices of both Nikola and GM are rising together.

According to CNBC on the same day, GM will invest $2 billion in Nikola and secure the authority for one member of the board of directors. GM will also obtain the rights to supply Nikola's fuel cells for large trucks worldwide, excluding Europe. Additionally, GM will support the development and production of fuel cells for Nikola's Badger pickup truck.

Nikola will use GM's battery systems and fuel cell technology and focus on selling the Badger pickup truck.

The Badger is scheduled to be unveiled in December and will begin production at the end of 2022.

Following the announcement by both companies, their stock prices are soaring together on the New York Stock Exchange. Nikola's stock price rose 29% in pre-market trading, while GM's increased by 6.3%.

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