FRANKFURT – Shares in electric and hydrogen-powered truck startup Nikola plunged on Monday after the company's founder resigned amid allegations of fraud - just two weeks after signing a $2 billion partnership with General Motors.
Under the partnership announced with GM, the Detroit-based automaker would take an 11% ownership stake in Nikola and would engineer and build Nikola’s Badger hydrogen fuel cell and electric pickup truck.
In exchange for the 10-year deal, GM was to get $2 billion worth of Nikola’s newly issued common stock that will come in three increments through 2025.
GM has been under pressure from Wall Street to more quickly exploit its electric vehicle technology, while the GM deal gave the startup added credibility, according to analysts.
Under the deal, Nikola will be responsible for the sales and marketing of the Badger, built on GM’s new battery electric truck underpinnings and using GM fuel cell and battery technology.