GM has no reason to back out of its one-sided deal with Nikola
Companies, agencies, institutions, etc
GM
RBC Capital Markets
Guidehouse
Badger
Ultium
ReadingNikola
Chevy
Abuelsamid
Apple
iPhone
Robinhood
the Ars Orbital Transmission
CNMN Collection
WIRED Media Group
Condé Nast
People
Timothy B. Lee
Sep 15
Mary Barra
Nikola
Trevor Milton
Sam Abuelsamid
videoAbuelsamid
Hummer
Ars
Groups
No matching tags
Physical locations
Europe
Places
No matching tags
Locations
Nikola
Detroit
Tesla
Events
No matching tags
Summary
"It's all upside."Under the deal, Nikola will pay GM up to $700 million to cover the cost of building manufacturing capacity for Nikola's Badger truck. Even if Nikola were to go out of business in a year or two, GM would gain valuable knowledge and experience—and might be able to use the Nikola-funded facilities to make its own pickup trucks.Further ReadingNikola admits prototype was rolling downhill in promotional videoAbuelsamid predicts that GM will build the Badger in Detroit alongside GM's own electric vehicles such as the electric Hummer and the Chevy electric pickup truck. Or maybe the Nikola brand will be so compelling that Nikola can turn a profit by selling trucks manufactured by others indefinitely.The more cynical interpretation is that Trevor Milton simply wanted to be able to say that he had a deal with GM.
As said here by Timothy B. Lee