The Rising Influence of Rising Affluence

[DewDiligence]

NKLA +38% on GM collaboration—11% equity stake:

https://www.wsj.com/articles/general-motors-takes-stake-in-electric-vehicle-company-nikola-11599568421

General Motors Co. agreed to help Nikola Corp. engineer and build its electric pickup truck in exchange for an 11% stake, the latest tie-up between a traditional automaker and an electric-vehicle upstart. Shares of both stocks surged on the news in morning trading.

Under the deal, General Motors will engineer, validate and manufacture the electric battery and fuel cells for Nikola’s Badger passenger truck. In exchange for the services, Nikola will give GM $2 billion in new stock and the right to nominate one director.

… Nikola will be responsible for the sales and marketing for the Badger and will retain the Nikola Badger brand. The Badger will be unveiled in December, and production is expected to start in late 2022.