Nikola (NKLA) and GM (GM) are teaming up to take on Tesla’s cybertruck.
The electric truck startup announced Tuesday it has selected GM to be its manufacturing parter for its electric pickup truck dubbed the Badger. The Badger will use GM’s widely acclaimed Ultium battery technology. Additionally, Nikola will hand over $2 billion in stock to GM — giving the automaker an 11% stake in the company.
Shares of Nikola and GM rose 40% and 8%, respectively on the tie-up.