Shares of Nikola Corp. (NKLA) are soaring over 25% today, following the company’s strategic partnership with General Motors Co. (GM).
NKLA has been trading in the range of $10.27 – $93.99 for the past one year, and is currently trading at $44.68, up $9.13 or 25.69% Tuesday morning.
As part of the agreement, Nikola will utilize General Motors’ Ultium battery system and Hydrotec fuel cell technology, representing a key commercialization milestone for General Motors.
Nikola anticipates saving over $4 billion in battery and powertrain costs over 10 years and over $1 billion in engineering and validation costs.
The company noted that Nikola would exchange $2 billion in newly issued common stock for the in-kind services and access to General Motors’ global safety-tested and validated parts and components.
General Motors would be subject to a staged lock-up provision beginning in one year and ending in June 2025. Further, General Motors would engineer, homologate, validate and manufacture the Nikola Badger battery electric and fuel cell versions.
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