Nikola Badger EV ute axed
GM pulls pin on high-tech hydrogen pick-up; Nikola to refund millions of dollars’ worth of depositsThe Nikola Badger electric pick-up truck that was set for export sales to Australia has been canned after General Motors pulled the pin on a troubled $US2 billion ($A2.7bn) agreement with the US start-up.
Nikola shares plummeted almost 25 per cent after news of the terminated agreement went public.
It’s been a bumpy ride for Nikola, as allegations of fraud against Nikola Motors founder and chairman Trevor Milton were aired just two weeks after the agreement with GM was signed in early September.
Milton promptly resigned.
Nikola’s fortunes have fluctuated wildly ever since it first announced the Badger back in February 2020, following in the wheel tracks of the Tesla Cybertruck, Rivian R1T, the all-electric Ford F-150 and others.
The Badger was touted as having a class-leading 965km range thanks to its combined battery-electric and hydrogen fuel-cell energy storage systems, which would have provided a unique selling point.
Powered by multiple electric motors producing a prodigious 675kW and 1350Nm, the Badger was claimed to be able to reach 100km/h from standstill in around 3.0 seconds. Nominal cruising power was 340kW.
Nikola will now focus on its zero-emission truck projects and will be forced to refund potentially more than $US6.9 million ($A9.4m) in customer deposits.
Nikola CEO Mark Russell had previously suggested the Badger’s future was in jeopardy, and although it could still be resurrected if another manufacturing partner can be found, it looks unlikely.
Nikola Motors went public in June 2020, the float seeing the company valued at $US73 billion ($A100bn) when the share price climbed to almost $US80 on the back of the huge publicity and customer demand surrounding the Badger.
Today the share price is just over $US20.
The controversy kicked off when a report by short-seller Hindenburg Research accused Nikola of misleading investors with deceptive and fraudulent practices.
GM has now signed a non-binding memorandum of understanding that replaces the previous deal, which had set out plans for the American car giant to build the Badger and take an 11 per cent stake in Nikola.
Instead, GM will now simply supply its Hydrotec fuel-cell system for use in Nikola’s electric trucks.
There is the possibility GM will also supply Nikola with its Ultium battery system.
GM has already launched its own electric ute in the form of the new Hummer EV, which is sold out until 2022.
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