DETROIT (Reuters) – General Motors Co and Nikola Corp on Monday announced a reworked agreement on a fuel-cell partnership that eliminates an equity stake in the startup for the Detroit automaker as well as plans for building Nikola’s electric pickup truck, sending Nikola shares tumbling almost 25%.
In September, the companies announced a deal under which GM would supply batteries, a chassis architecture, fuel cell systems and a factory to build Nikola’s proposed Badger electric pickup in return for an 11% stake and $700 million.
But the deal came into question after a short seller criticised Nikola as a fraud, something Nikola has denied.
The new agreement, a non-binding memorandum of understanding that doesn’t expire until the end of 2021, is subject to negotiation and a definitive deal, Nikola and GM said in separate statements. Reuters News.