By Rachit Vats and Ben Klayman
(Reuters) – General Motors Co
and electric truck startup Nikola Corp
will join forces to build electric pickup trucks and fuel cell commercial trucks to take on Tesla Inc
, in a deal that lifted shares in both companies on Tuesday.
As part of a multi-part, multibillion-dollar deal, GM received an 11% stake in Nikola, valued at about $2 billion. In return for the Nikola shares, GM will supply Nikola with batteries, a chassis architecture, fuel cell systems and a factory to build the startup’s proposed Nikola Badger pickup. GM will also supply fuel cell technology for Nikola’s planned Class 7 and 8 commercial tractor-trailers.
Shares of Nikola soared more than 48% to $52.94 after GM’s investment, giving GM a paper gain of more than $500 million on its investment. GM said it expects to realize a total of $4 billion in value from