Business

Nikola shares surge 45% after General Motors takes 11% stake in electric truck maker


Shares of Nikola surged Tuesday after General Motors announced that it's taking an 11% stake in the electric truck maker and will produce its marquee hydrogen fuel cell electric pickup truck the Badger by the end of 2022.


"Nikola immediately gets decades of supplier and manufacturing knowledge, validated and tested production-ready EV propulsion, world-class engineering and investor confidence," Milton said in a statement.


Nikola began trading June 4 after a reverse merger with VectoIQ, which is a publicly-traded special purpose acquisition company headed by former vice chairman of GM Stephen Girsky.


The stock has taken off since its IPO despite the fact that Nikola, which was founded in 2015, doesn't expect to generate revenue until 2021, and shows the dispensation investors are willing to give to companies that promise vehicles of the future.


CEO Trevor Milton had previously said the company would need to partner with an established manufacturer to build its Badger pickup.


Fuel cell technology combines hydrogen stored in a tank with oxygen from the air to produce electricity, with water vapor as the by-product.






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