GM cancels deal to build Nikola (NKLA) electric-hydrogen pickup truck after many controversies Electrek
Fred Lambert
Nov. 30th 2020
GM has dropped its plan to build the Nikola (NKLA) Badger electric/fuel cell pickup truck and take a stake in the controversial company.
However, GM will still supply Nikola with fuel cell hydrogen technology for its semi trucks.
As we have been reporting over the last few months, Nikola is currently in hot water after a report from Hindenburg Research made several allegations exposing deception by Nikola and its founder Trevor Milton, including several claims corroborated in previous reports from Electrek and Bloomberg.
Nikola issued a response to those claims, but as we reported, the response lacked any rebuttal of the main allegations of deception by the company and its founder, Milton.
For the most damning one, the claim that it faked the first video of its hydrogen truck driving, the company even admitted to it without issuing an apology and, instead, claimed its deception was fine due to a technicality.
That's gotta sting. Milton is still MIA. Anyone who didn't see this coming is pretty foolish honestly. Why would GM continue to build the Badger when it's got it's own EV trucks to roll out too?
I'm old enough to remember (less than 3 months ago) that things like....................
"Oh course GM vetted the company and know what they are getting into, GM wouldn't just jump into a bad-deal"
"GM looks to be well positioned to be a leader, their own BEV and hydrogen tech buttressed by Honda's hydrogen tech and couple that with what Nikola brings to the table"
"Brilliant move by Ms Barra. GM always had and has the technology, the ability to produce innovative systems and products. GM in my opinion needed to be seen by wall street as the “hot” new wonder."
"Of course GM knows what it is doing, GM never gets into bad-deals"
(but I think that last one might have been sarcasms)
Todays recommendation of all auto stocks to buy is invest in GM.
Structurally GM is best poised to lead the auto sector.
Cruise automation, its ultium battery technology. Its prodiction and distribution capability and on and on.
No other automaker including tesla is as ready and capable for all aspects of this ev revolution. I think its stock at 41 dollars a share is 25 percent off recent previous lows.
Nikola stock value wasn’t ever in automobile technology, but in how they envisioned transforming the freight haul marketplace, first with drivers, then with automated hauling, this is where true value is in Nikola, if the company can survive the visionaries folly and bring the model to fruition.
Spend a little time and you realize if it can be brought to fruition, it’s totally disruptive to the current status quo in the freight hauling business.
Sounds like a sound business strategy, just kidding....sounds like they are for real, no ****, pushing vapourware and GM bought it hook, line, and sinker.
"At the center of the debacle is Mary Barra, GM’s talented and well-regarded chief executive officer, and Stephen J. Girsky, a former GM executive who put the Nikola transaction in front of Barra in the first place."
I'm generally a Barra fan, but this one is a mess up for sure.
But they looked into Nikola!!! All they saw were the dollar signs to be had. Milton went thru 3 companies that were closed and/or sold off after they had some trouble meeting contracts or after being sued. It doesn't really take much looking to find some troubling about his past.
A different article I read said that Tesla wanted to use GM's Hummer EV architecture for the Badger to get a 600 mile range. And they wanted to undercut GM by selling the Badger at $60k-$90k. I see the last part as being the bigger issue. It would have been a dumb move on GM's part to give your "partner" the technology to allegedly out-perform and under-cut your own products.
Nope...I think the difference will be negligible between the current huge diesel powerplant and running gear vs a larger EV powertrain. We're not privy to the specifics of an EV Semi's weight but I'd wager they're close in weight.
Too bad the Nikola deal got taken down as Milton got greedy as a showman. He may have gone too far but he almost pulled it off.
I thought and still think the GM plan was masterful. Gm would have gotten a stake in a company poised to be the next tesla and would be producing the product. Producing the nikola pickup would have been as easy as producing a buick and an oldsmobile...just added profitable volume. The image of nikola would have been gold for GM had milton mot been so gluttonous in his showmanship.
Sad turn of events...
I personally believe 18 wheelers running hydrogen is ingenious. Not so much for the pickup...that was never going to be. That should have just been a ev .
Oh well...maybe they can resurrect the plan at a later date.
That's not "embellishing to drive home a point", that is straight up lying to bolster a stance that has no merit
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