GM made a deal with Nikola for an 11 per cent equity stake in the zero-emissions vehicle company that will see GM manufacture Nikola’s upcoming Badger battery and fuel-cell electric-vehicle types, for which the company launched pre-orders today. (The Logic)

Talking point: The deal sent the companies’ shares soaring as investors saw benefits for both. GM CEO Mary Barra told CNBC the deal allows the company to leverage its technology and “is a huge growth opportunity” for it, as it extends beyond the Badger truck. Nikola, meanwhile, expects to save more than US$5 billion over time. Its founder Trevor Milton said it was “a big deal” for the company to avoid paying to build a plant, among other cost savings. The deal comes as Wall Street questioned whether GM should spin off its electric-vehicle business. It’s set to start producing an electric van for business users, codenamed BV1, in late 2021 in an effort to take on Tesla. Meanwhile, Nikola competitor Rivian and GM failed to reach a deal last year. In July, Rivian secured US$2.5 billion in new funding.