Nikola Corporation was once touted as one of Tesla’s main competitors. The two had been competing to green the logistical transportation sector, with Nikola’s hydrogen-powered TRE semi-truck against Tesla’s electric Semi model, but Tesla pulled away early on. Problems have plagued Nikola to the point that the brand has lost much of its credibility.
In December 2023, Nikola suffered its biggest crisis when Trevor Milton, founder and former CEO, was convicted of securities and wire fraud. A lengthy investigation by Hindenburg Research found that he exaggerated claims about Nikola trucks’ performance, leading a jury to say that he defrauded investors. Milton resigned as Nikola’s CEO in 2020 after the investigation.
The Milton news ended several deals the company had with General Motors (GM), and the company settled a civil case with the U.S. Securities and Exchange Commission for $125 million.
One deal included GM helping Nikola develop the Badger, a hydrogen fuel-cell pickup truck. The company claimed it would be one of the longest-range zero-emission vehicles in existence.
The Badger has a reported 600 miles of range and can go 0-to-60 mph in 2.9 seconds. A few concept models of the car have emerged, but news about the Badger’s development has been scarce since the deal with GM was canceled.
Screengrab from YouTube/HeavyDSparks
That was until David Sparks, known by his YouTube persona Heavy D, released a video on his channel saying he planned to revive the Badger and bring it to market. Sparks acquired the intellectual property rights and vehicle program to the Nikola Badger, the NZT (an electric UTV), and the Waverunner, an electric watercraft. In the video, Sparks takes the Badger out for a spin to show the truck’s reliability.
Electrek reported that Nikola hired Sparks and his Discovery Channel show, The Diesel Brothers, to promote the Badger when news about the truck initially broke. Milton offered shares of the Nikola stock for the promotion, and it could’ve been worth as much as $140 million when the company was at its peak value. The Milton conviction tanked Nikola’s stock, dropping from $20 billion to $1 billion.
Their partnership would’ve been highly beneficial to each other. Nikola would’ve been working with one of the top names in car-related content. Meanwhile, Heavy D and The Diesel Brothers would’ve aligned itself with a GM-backed ZEV startup. The stars of the show were fined nearly $850,000 by a federal judge for violations of the Clean Air Act in 2021 — including an extra $1 million in legal fees — and needed a reputation boost.
Heavy D says he plans to bring the Badger to market. He and business partner Cole Cannon own the license for the three Nikola vehicles under a company called Ember. Ember will work to find the manufacturers willing to build the Badger. Sparks said he is far from making money on the Badger and “all his time and energy and attention” will go to building these trucks. He wants to “finish what Nikola started.”
Photo Courtesy Nikola Motors
Nikola has been slowly rebuilding its reputation after years of chaos under Milton. Some of the turmoil included a 2018 lawsuit with Tesla over patented designs, prompting Tesla to file a countersuit. CNN reported that Nikola alleged Tesla stole its designs “for a wrap-around windshield and doors to the cab.” The lawsuit was settled in 2022 — the two companies agreed to drop their suits against each other.
However, the suit’s impact was far-reaching — mainly, its claims of “significant contracts for its planned trucks” raised questions in 2020, forcing Milton to step down. He was indicted for deceiving investors in 2021. Many described the lawsuit as an elaborate trolling scheme Nikola against what was considered its rival. Since then, Tesla’s stock has eclipsed the $1 trillion valuation. Nikola is shrinking.
The Badger was marketed as a competitor to the Cybertruck when plans were originally unveiled in 2020. Since then, Ford, GM, Ram, Rivian, and even Fisker have launched electric pickups with varying degrees of success. More niche fuel-cell vehicle firms are opening, saturating the zero-emission car market. Sparks and The Diesel Brothers will need to make some serious business deals to get the Badger off their garage floor.
Steve Girsky, the current CEO and president, has been overseeing the rebuild of Nikola. He managed to get more than 42 hydrogen and electric-powered trucks to several logistics firms in North America.
This effort was the first delivery of Class 8 hydrogen fuel trucks in North America. The trucks went to companies like Biagi Bros, IMC Logistics, 4Gen/Duncan and Sons Lines, Alberta Motor Transport Association, and Coyote Container. The company also opened a modular refueling station in Ontario, California, and a battery electric truck is coming at the end of Q1 2024.
It’ll be interesting to see if Sparks and Cannon can get the Badger off the production line. Some are skeptical about the venture, given Nikola’s reputation. Some are critical that it is simply a public relations stunt by the YouTuber while trying to simultaneously repair Milton’s image. There aren’t many YouTubers with the type of capital to manufacture cars, but we have seen them do crazier things. Keep an eye on this one.
