Nikola can go it alone without GM: CEO

Nikola Corp.' s chief executive officer sees a path ahead for his company even if the embattled electric-truck startup is unable to come to terms with General Motors Co. on a proposed strategic partnership.

Talks between the two companies are ongoing, but if a tentative technology-sharing and manufacturing deal announced last month falls apart, Nikola will revert to a “base plan” without GM's help, CEO Mark Russell said in an interview Thursday.

“We have the ability and we have a base plan of doing it ourselves. If we have a partner, that just enables us to consider going faster and helps reduce the risk,” he said. “We've proven that over the years that we are a partnership company when those things are available to us.”

GM spokesman Jim Cain declined to comment.

The Phoenix-based company's relationship with its would-be partner has been the subject of intense scrutiny since Nikola and its founder and former chairman Trevor Milton were accused of deception. Both the company and Milton have denied those claims.

GM is eyeing an 11-percent stake in Nikola as part of a cash-free deal in exchange for providing access to fuel-cell technology and for manufacturing the startup's electric pickup. Nikola has stopped referring to that vehicle, called the Badger, in its public statements as talks continue with GM ahead of a Dec. 3 deadline.

Russell said Nikola is prepared to drop the truck if it can't secure an agreement with an original equipment manufacturer like GM.

“The Badger is part of our discussions with GM. And we've been clear all along that we wouldn't build a Badger without an OEM partner,” he said.

Nikola's shares closed 16 - per- cent down to US$19.54 Friday in New York. The stock is down more than 70 per cent from a high of US$79.73 in early June shortly after the company gained a public listing through a reverse merger.

Nikola also has held talks with oil major BP PLC about setting up hydrogen-fuelling stations across North America, Bloomberg reported last month. The status of those talks are unclear, but the firm has said it plans to announce a partner by year-end.

Russell reaffirmed that timeline and declined to comment on BP or specify any other potential partner. He said Nikola has a plan to develop hydrogen infrastructure on its own if unable to arrange a suitable alliance.

Nikola does have agreements with other technology providers, including Robert Bosch GmbH to co-develop fuel-cell technology. Two of the startup's heavy-truck prototypes use fuel cells from Bosch and the company has said its German partner will continue to supply cells for vehicles produced in Europe.