General Motors Will No Longer Hold Shares In Nikola

General Motors And electric car manufacturer Nikola today announced a revised new cooperation agreement

According to the new agreement, the scale of cooperation between the two parties has been reduced. The agreement retains the fuel cell partnership between the two companies, but cancels General Motors’ shareholding in Nikola and cancels the manufacture of Nikola’s electric pickup truck’s plan.

In September of this year, the two companies announced an agreement under which General Motors will provide batteries, chassis architecture, fuel cell systems, and a factory to produce Nikola Badger electric pickup trucks in exchange for an 11% stake in Nikola, and Nikola paid $700 million in production costs.

But then, the deal was questioned, and Nikola was accused of deception, although Nikola denied this statement.

The short-selling agency Hindenburg Research issued a short-selling report on 10 September, claiming that Nicholas had deceived and accused Nikola’s founder Trevor Milton of dealing with the company’s technology.

Make false statements to attract investors and cooperate with other car companies.

In response to this revised agreement, Nikola and General Motors issued separate statements today stating that this new agreement is a non-binding memorandum of understanding, which is still pending further negotiations between the two parties and a final agreement.

According to Nikola, under the new agreement, General Motors will provide fuel cell systems for Nikolas’s Class 7 and Class 8 commercial semi-trailers.

Besides, the two companies are still discussing that Nikola may use General Motors’ Ultium battery system in its commercial trailers.