It has been reported that General Motors are no longer going to have a stake in Nikola. As a result of this decision, Nikola has ended the plan of a badger pickup truck and every deposit is to be refunded by them. However, GM has still agreed to provide Nikola with a hydroelectric fuel cell system. Emmanuel Rosner at Deutsche Bank stated that GM more or less does not want to stay associated with Nikola’s output in the long run.
Nikola’s aim for producing the zero-emission vehicles, the concepts of which have been presented since 2016 have staggered considerably with GM’s decision to abandoning taking a stake there. Many claims of astounding acceleration and ability to run on both hydrogen cell and lithium-ion battery about Badger Truck were made. However, it appears the truck might never come into existence with GM’s lack of assistance. Consequently, Nikola’s shares drop to 26.9%.
There were already rumors and speculations in regards to this decision being taken by GM. GM showed doubt in Nikola Corp’s claims. While the reputation of their exaggerated claims has also been called into question before.
Moreover, Nikola’s reputation has also experienced damage by an inquiry for fraud which is ongoing as well as the resignation of Trevor Milton amidst these allegations being brought to light. This has caused a hurdle for the corporation to expand and actually make its concepts into products.