Benzinga - by Benzinga Neuro, Benzinga Staff Writer.
In a surprising turn of events, Nikola Corp‘s (NASDAQ:NKLA) Badger electric pickup, once a symbol of its tumultuous past, is set for a comeback. The resurrection is being spearheaded by a figure with close ties to the company’s controversial former CEO, Trevor Milton.
What Happened: As reported by Electrek, the Badger electric pickup, which played a role in the dramatic rise and fall of Nikola Motors, is making a surprising return. The revival is being orchestrated by David Sparks, also known as Heavy D Sparks, a YouTuber and co-star of the show Diesel Brothers.
Sparks has announced the acquisition of the Badger’s vehicle program and intellectual property, along with the electric UTV and Waverunner from Nikola Motors. This move is set to bring the vehicles back to the market. Sparks, who was previously hired by Milton to promote the Badger, has a controversial stance on the matter. He defended Milton in his video and questioned the fraud case against him.
Sparks claims that he and his partner have been working with Nikola for three years to acquire the Badger program. The duo finally closed the deal, which Sparks says is worth “tens of millions,” with Nikola as a “minority partner” in their new company. The deal includes the only two Badger prototypes produced.
Although Sparks did not provide details of his plan to bring the vehicles to market, he assured that everything would be documented on his YouTube channel.
Why It Matters: The Badger, which was announced on the heels of Tesla’s Cybertruck being unveiled, has been a subject of much controversy for Nikola. The company’s market cap skyrocketed to $20 billion following its announcement, but what followed was a series of scandals that led to a significant drop in valuation.
This ultimately led to the departure of Milton and a $125 million settlement with the SEC.
The future of the Badger seemed uncertain in 2020, and the latest developments are quite unexpected. This move could potentially reignite interest in the Badger, but it also raises questions about the future of the vehicle and its association with Nikola’s controversial past.
Price Action: Shares of Nikola closed down 4.7% at 71 cents on Tuesday, but were up 3.44% in Wednesday’s premarket. The stock is down over 15% so far this year, according to data from Benzinga Pro and its market capitalization stands at $816.6 million as of last close.
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Photo courtesy: Nikola
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