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Re: Nikola Founder Quits Amid Fraud ClaimsU.S. News: Nikola to Outsource Batteries for Trucks Foldy, Ben. Wall Street Journal, Eastern edition; New York, N.Y. [New York, N.Y]22 Sep 2020: A.6. Electric-truck maker Nikola Corp. is turning to an outside supplier to provide batteries for its first semi-truck model, according to people familiar with the matter, a contrast to the company's earlier statements that it has developed its own battery technology. Nikola plans to source the core battery technology from California-based Romeo Systems Inc. for both prototypes of its Nikola Tre semi-truck, as well as the final production version, which is expected go on sale in 2021, said one current Nikola employee and another person with knowledge of the plans. While it is common for companies, especially in the auto and transportation industries, to use critical parts designed and manufactured by independent suppliers, Nikola has come under scrutiny recently after a short seller's report accused the startup of misleading investors about its technology. Nikola's Executive Chairman Milton Trevor stepped down early Monday saying he wanted the focus to remain on the business, not him. A Nikola spokeswoman said the company doesn't comment on supply agreements or partnerships that it hasn't publicly announced. Romeo didn't respond to a request for comment. The Financial Times earlier reported the relationship between Nikola and Romeo. Nikola, a Phoenix-based maker of electric and hydrogen-powered trucks, went public in June through a reverse merger and has drawn the attention of Wall Street this summer. The Nikola Tre will be its first semi-truck model. It also recently struck a deal with General Motors Co. in which the Detroit auto maker would help it design and build a light-duty pickup, called the Badger. Mr. Milton has said the company would use its own batteries for its first semi-truck and has touted Nikola as having its own proprietary technology. Following the company's listing in June, the company published a video of Mr. Milton specifying that the Nikola Tre, set to start production next year, would use a chassis and frame designed by partner Iveco but that the batteries and other core technologies belonged to Nikola. However, Mr. Milton has also said Nikola wouldn't rule out using an outside battery supplier. Mr. Milton didn't return a request for comment on his earlier statements about Nikola's batteries. It couldn't be determined what role Nikola had in developing the battery modules specific to its trucks, but people with knowledge of the plans said the core technology was designed by Romeo. Credit: By Ben Foldy |
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