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GM renegotiates the future with Nikola
General Motors has upended its planned partnership with electric car startup Nikola, sending Nikola’s stock plummeting. GM cut off the supply of batteries, other parts and factory space for Nikola’s proposed Badger electric pickup … effectively putting the plans for the electric model on ice. Nikola will now have to repay the deposits. The two also announced Monday that GM will no longer take an 11 percent stake in Nikola or get $ 700 million as stated in the original deal announced in September. GM was forced to reconsider its association with Nikola after a short seller criticized Nikola for being a fraud. Something that Nikola has denied. But GM is not completely moving away from startup. Under a new agreement, GM will supply its fuel cell system for two of Nikola’s commercial semi-trailers and the two are also discussing the potential use of GM’s battery-electric system in Nikola’s commercial trailers. GM’s original interest in a partnership with the startup had been seen as a vote of confidence in Nikola, but with that deal now canceled, Nikola’s stock took a hit on Monday. The stock lost a quarter of its value. Electric car maker Tesla fell from an all-time high on the news. Shares of GM fell slightly.
