The potential is massive with the EV firm focusing on a major collaboration deal with GM.
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Shares of Nikola Corp. (NKLA) is rallying today with a swift trading volume. The EV firm has certain key ends that make sense on the stock going bullish.
As of today, the stock is soaring with strong momentum and so far, has surged to 20.43% trading at $26.53, at the time of press. NKLA has jumped from the $21-$22 price range to $25-$26. The trading volume is also rising and currently, it hovers below 43 million.
Cummins after itsrecent hydrogen technology event motivated investors to jump in, however, the stock does not seem to have that impactful response. Instead, the U.S. EV maker is having a bullish run gaining investors’ sight.
The stock in on a continuous bullish move for almost a month now.Nikola-GM collaboration is a major breakthrough for the company that has kept the investors bullish.
General Motors recently signed an agreement with Nikola for manufacturing NKL’s Badger using its Ultium battery system.
The collaboration deal is based on the customary antitrust regulatory approval and closing conditions.
GM will receive around $2 billion equity stake in Nikola for its services, almost 11% ownership of the EV maker. On part of Nikola, the company expects to save approximately $4 billion in powertrain and battery costs over the course of the next 10 years. Around $1 billion is anticipated to save in engineering and validation costs.
Apart from Badger, other major programs of Nikola that are part of GM manufacturing partnership include Nikola One, Nikola Two, Nikola Tre, and NZT. All these product lines will be based on GM’s Hydrotec fuel cell technology and Ultium battery system.
The marketing and sales responsibility of Badger will lie uponNikola. First announced on February 10, 2020, Nikola Badger is expected to make its way to the public at Nikola World 2020 in Arizona, scheduled between December 3-5.
The company believes that the production of Badger will kick off in late 2022. Whereas, the location is yet to be decided in consideration with GM.
Nikola is one of the most innovative and forward-looking firms in the world. Entering into General Motors’ network and utilizing their advanced technology with top engineering will turn out to be very handy for the company.
The founder and Executive Chairman of Nikola, Trevor Milton sees this partnership as a great success, achieving their objectives one by one. Milton said:
“General Motors has a vested interest to see Nikola succeed. We made three promises to our stakeholders and have now fulfilled two out of three promises ahead of schedule. What an exciting announcement.”
Having a multi-million company on your side in such a crucial project will help Nikola Corp. (NKLA) to succeed with its new product lines.
We have wait until both companies end their table talk and make the final confirmation regarding this collaboration. So far, there is nothing new, but General Motors is expected to give a business update at an investor conference on Thursday. Let’s see what does GM has to update about its potential partnership deal with Nikola.