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Why GM is sticking with Nikola despite fraud allegations

Enlarge / Mary Barra, CEO of General Motors, in 2019. (credit: Patrick T. Fallon/Bloomberg via Getty Images)

GM CEO Mary Barra on Monday signaled that the company is standing by its deal to produce Nikola’s Badger pickup truck.

“The company has worked with a lot of different partners and we’re a very capable team that has done the appropriate diligence,” Barra said during a conference with RBC Capital Markets on Monday.

GM is standing by Nikola despite recent revelations that the startup misled the public about the capabilities of its first truck, the Nikola One. At its 2016 unveiling, founder Trevor Milton claimed that the Nikola One “fully functions.” But on Monday, Nikola admitted that the company never had a working prototype of the truck. The company acknowledged that a 2018 promotional video showed the truck rolling down a shallow hill—not driving under its own power.

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