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Technology Stocks : Nikola Corp
NKLA 0.0297-1.0%Nov 11 9:30 AM EST
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From: kidl9/12/2020 2:36:40 PM
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I have read numerous articles / opinion pieces about the GM deal. A few things stand out:

The deal essentially reduces Nikola’s involvement in the Badger to design, sales and marketing. Everything else comes from GM on a cost plus basis.

GM’s risk is essentially zero while getting a benefit of somewhere around $4 Bil (subject to NKLA’s share price and Badger sales volume) between the “free” shares, component sales and contract manufacturing.

GM doesn’t really compete with itself as future GM E-Pickups will likely be in a lower price category than the Badger.

NKLA benefits from GM’s technology, production knowhow, supply chain and much lower CAPEX requirements.

Strikes me that the Badger will essentially end up being a GM product under a different brand name.
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