Nikola Badger EV Truck to be engineered and built by GM as part of new strategic partnership
Funny enough, GM now owns a significant part of Nikola due to this new partnership.
In GM's latest bid to get a better foothold in the electric car and truck market, it has successfully worked out a deal with Nikola where they will work jointly on Nikola's pickup, the Badger. This partnership will save Nikola an estimated $5 billion in battery/powertrain costs and engineering/validation costs.
In this partnership, GM will manufacture the Nikola badger. The Badger will also use GM's Ultium battery technology. In return, GM will gain an 11% stake in Nikola, or a $2 billion stake in the company, and the right to nominate one board member in exchange for in-kind services. GM will also supply the Badger globally except for Europe.
As a result of this partnership, GM stocks went up 9%, and Nikola stocks up 53%.
Nikola Founder and chairman Trevor Milton had this to say about the partnership: "Nikola is one of the most innovative companies in the world. General Motors is one of the top engineering and manufacturing companies in the world. You couldn’t dream of a better partnership than this.”
The Nikola Badger is setting itself up to be a worrisome competitor to the Tesla Cybertruck. The Badger will have 906 horsepower and 980 torques, which for sure isn't sluggish. That results in a 0-60 time under 2.9 seconds, which is in direct competition with the Cybertruck. However, the Badger will have 600 miles of range, while the Cybertruck is estimated to have 500 miles of range. The takeaway here is that the Badger will have (roughly) 100 miles more of range than the Cybertruck for similar performance.
Pricing for the Badger starts at $60,000 for the electric version. If you opt for the hydrogen cell version, that'll cost you $90,000. Under the new partnership with GM, it's expected that the Badger will be put into production by the end of 2022, with the debut most likely being this December.