While conversations between Nikola Corp. and General Motors are continuing after a strategic partnership agreement was reached in September, there are indications that the deal could potentially earn GM an 11% equity stake in the electric vehicle maker in exchange for “various in-kind services.”
“The transaction has not closed, and Nikola is continuing its discussions with General Motors,” the company wrote in its third-quarter earnings report Monday. “Nikola will provide further updates when appropriate or required.”
If a deal is not closed by Dec. 3, either party can terminate it.
General Motors previously announced it would collaborate on Nikola’s Badger pickup truck as part of the partnership. Tesla is also building its Cybertruck.
Former executive chairman Trevor Milton told FOX Business that the company expects the partnership with GM to result in almost $10 billion in savings across the board. In September, Milton left the company after allegations of fraud.
Meanwhile, Nikola’s new CEO Mark Russell noted that the company also made “significant progress on key milestones” in the third quarter, including delivering on its commitment to assembling the first Nikola Tre BEV prototypes, and working with its customers on prospective and previously announced BEV truck orders.
The company said it began assembling the first five Tre electric trucks at vehicle manufacturer IVECCO’s Ulm, Germany, plant and that it remains on track to start production in late 2021.