By Dawn Kopecki | CNBC
Shares of Nikola surged Tuesday after General Motors announced it’s taking an 11% stake in the electric truck maker and will produce its marquee hydrogen fuel cell electric pickup truck the Badger by the end of 2022.
Shortly before the opening bell, Nikola shares were up 30% and GM’s were 6% higher. Nikola shares had surged as much as 53% while GM’s jumped as much as 9.1% in the premarket trading.
GM is getting a $2 billion stake in Nikola and the right to nominate one board member in exchange for in-kind services. GM will also supply Nikola’s fuel cells globally, except Europe, for its class 7/8 truck. Phoenix-based Nikola specializes in building zero-emission semi trucks using battery or hydrogen fuel cell technology, but it recently introduced its Badger pickup truck for consumers.