General Motors takes 11% stake in electric-vehicle company Nikola

General Motors Co announced to acquire an 11% stake in US electric truck maker Nikola Corp, worth about $2bn, and will collaborate with the nascent company to make a pickup truck powered by a battery-electric system and/or fuel cell variants.

Shares of Nikola soared more than 30% to $46.30 in pre-market trade.

General Motors will receive $2bn in newly issued Nikola stock and will also obtain a right to nominate one director to the electric truck maker’s board.

“This strategic partnership with Nikola, an industry leading disrupter, continues the broader deployment of General Motors’ all-new Ultium battery and Hydrotec fuel cell systems,” said GM chief executive Mary Barra.

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