[carriganisms]

If you read to the end of the article it addresses the GM deal. GM will use its own battery tech. Nikola is basically just sales/marketing. The deal still makes absolutely no sense, but GM isn't dependent on Nikola having working tech or not.

[jfim]

It might actually make sense for GM. GM is building the vehicles using their own tech/plants (presumably not at a loss) and for doing so, is getting Nikola stock.

If Nikola is an unexpected success, then they have a significant stake in it, and if they fail, then hopefully they don't have too many vehicles that Nikola hasn't paid for.

[perardi]

It's baffling. Like you said, GM will use its own technology. So they bought 11% of Nikola for…edgy CEO shitposting on Twitter?

GM can definitely build a good electric vehicle. They cannot seem to market a good electric vehicle—see Chevrolet Bolt sales, and then ask a random person if they know what a Bolt is. So the Nikola investment is the equivalent of buying a hip design studio?

[stu2b50]

They didn't buy any stock. GM gets 11% in return for supplying and R&D for the Nikola "car". But they didn't spend any cash, and in fact get cash because they can reimburse 700M.

In the worst case, they were paid to do their own R&D.

Nikola basically bribed GM with a insane deal so they can say they have a GM partnership.

[foobarian]

Even better, remember the EV1?

https://en.wikipedia.org/wiki/General_Motors_EV1

[tyingq]

Nikola did have a pleasing exterior design for the pickup and a solid email list of potential buyers. Not worth a fortune, but something.

[HuShifang]

It wouldn't be the first time GM used a "sock puppet" (loosely defined) to escape its own reputation. [0]

[0]: https://en.m.wikipedia.org/wiki/Saturn_Corporation