Zero-emission truck developer Nikola Corporation (NASDAQ:NKLA) analyzed the top automobile manufacturers globally and concluded "hands down" that General Motors Company (NYSE:GM) would be its best partner, Trevor Milton, Nikola's founder and executive chairman, said on Fox Business.
What GM Brings To Nikola: Nikola was most attracted to General Motors' massive purchasing power, which could generate $4 billion in battery cost savings and $10 billion in total savings, Milton said.
"This was a huge, huge deal for us," he said.
As part of the partnership, General Motors will manufacture the Nikola Badger truck and bring it to production in what Milton called a "perfect fit" and "great story" between the two companies.
The GM, Nikola Timeline: Nikola remains on track to start production of the Badger in late 2022, in part due to General Motors' help, Milton said.
The Detroit automaker brings decades of experience, especially in important areas like testing.
Nikola has succeeded with other timelines, namely one that was pledged to investors when it went public, the company's founder said.
As a pre-revenue company, Nikola promised to hit three goals in due time, he said:
- Announcing one of the largest orders in electric vehicle history.
- A partnership to produce the Badger.
- A partnership to produce hydrogen stations.
"We have done two out of the three now in the first month," he said. "So we beat all of our timelines."
NKLA, GM Price Action: Nikola shares lost 15.34% in Wednesday's session, closing at $42.37. GM shares were down 1.3% at $31.95.
Photo courtesy of Nikola.