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Nikola’s shares are climbing up the ladder after GM bought 11% stakes from the company on Tuesday!

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The shares of Nikola are rising continuously after General Motors announced that they are taking around 11 % stake in the company. General Motors will be getting around 2 billion dollars stakes in the company and it will also have the right to nominate one board member in exchange for in-kind service. General Motors will be producing electric trucks in partnership with Nikola. The partnership will be running until the end of 2022. Before the stakes were purchased, the shares of Nikola were 30% and General Motors shares were 6% higher than Nikola. The shares of Nikola are at 53% now. General Motors shares are also at 9.1 % higher.

Nicola has a greater specialising in building zero-emission semi-trucks. The technology which is used by the company is battery or hydrogen fuel cell technology. Although, recently Badger pickup trucks were also introduced by the company for consumers. The partnership with General Motors will make GM, the exclusive supplier of Nikola’s fuel cells globally. As per the CEO of General Motors Mary Barra, this is a very great opportunity to increase the technological advancement of their company. This partnership will bring expertise in engineering and manufacturing to their company.

The CEO also explained that this is a very great opportunity for the company to grow. The Executive Chairman of Nikola, Trevor Milton also addresses the partnership and said that this will give their company more status than just of a manufacturer. As per the experts, this partnership is a very smart decision for Nikola. The company will have certain advantages such as the non-commitment of millions of dollars to set up the manufacturing plant. The investors were also looking forward to this partnership and this deal. Nikola is all set to launch the class 8 battery-electric vehicle in 2021. This launch will be followed by Nikola Two class 8 fuel-cell electric semi in 2023.

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