Beleaguered electric trucking company Nikola has sold the Badger electric pickup truck assets to a new company called Embr Motors, owned by Dave “Heavy D” Sparks, one half of the former TV duo the Diesel Brothers. This sale includes the intellectual property associated with the Badger pickup truck, as well as the assets related to Nikola’s abandoned off-road and personal water craft vehicles. Embr Motors also now owns the only two prototype versions of the Badger ever built.
Key Takeaway
Nikola has sold the Badger electric pickup truck assets to Embr Motors, owned by Dave “Heavy D” Sparks. This sale includes the intellectual property associated with the Badger pickup truck, as well as the assets related to Nikola’s abandoned off-road and personal water craft vehicles.
Background
From its founding in 2014, Nikola primarily focused on making hydrogen and electric big rigs. However, in February 2020, it revealed the Badger pickup just before going public in a merger with a special purpose acquisition company. General Motors announced a $2 billion investment in the startup in September 2020 to help bring the Badger to market. Shortly after, allegations from a short-selling research firm led to a government investigation, resulting in Nikola paying a settlement to the SEC and the departure and eventual conviction of founder Trevor Milton.
The Sale and Future Plans
Dave “Heavy D” Sparks announced the purchase in a recent YouTube video, stating that the transaction involved “tens of millions” of dollars. Nikola confirmed the sale, revealing that it is loaning money to Embr to purchase the assets and will retain a 30% stake in the company. This stake could hold value for Nikola’s shareholders if Embr Motors succeeds in bringing the Badger or the other vehicles to market.
Nikola’s chief legal officer, Britton Worthen, stated that Sparks and his partner, Cole Cannon, expressed a desire to bring the Badger to market and brought several EV-related partners to meetings as the two sides hammered out a deal. Worthen also mentioned that Sparks and Cannon agreed that Trevor Milton would not be involved in any way with these projects. Nikola is determined to push back against any efforts Milton makes to take control of the company, emphasizing that their directors and management are better suited for their stockholders.
