Nikola sells joint venture to Iveco for $35M and shares

Iveco Group will assume full ownership of a joint venture with Nikola Corporation, focusing on the commercialization of its own battery-electric and fuel-cell-electric trucks in Europe, leaving Nikola to focus on North America.

The companies formed their joint venture in 2019.

Iveco will still have access to vehicle control software for jointly developed trucks, and Nikola will be able to license Iveco’s S-Way technology in North America while also securing ownership of the intellectual property behind Generation 1 eAxles developed alongside FPT Industrial.

Nikola is selling its stake in the joint venture for US$35 million and 20.6 million shares in Nikola stock.

Nikola Tre
The Nikola Tre (Photo: Nikola)

Nikola production plans

The news comes as Nikola reports orders from 12 customers for 140 hydrogen fuel cell trucks. Serial production of those vehicles is to begin in July.

The first two out of 10 third-generation models – known as “gamma” trucks — have been completed, and the remainder are to be completed by June. Pilot tests will be conducted by Biagi Bros, Walmart, Linde, and AJR Trucking.

In the first quarter of this year it produced 63 Tre battery-electric trucks, and the company will now pause production in Coolidge, Ariz., as it prepares to accommodate fuel-cell-electric and battery-electric trucks on the same assembly line.

“We have the right products at the right time, and as we move forward, we will be focusing on the North American market, hydrogen fuel cell trucks, the Hyla hydrogen refueling business, and autonomous technologies,” Nikola CEO Michael Lohscheller said in a press release. 

“We are on the right path with our re-energized management and commercial teams, improved sales strategy, new dealers, and energy partners.”

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