Nikola has sold the assets related to its Badger electric pickup truck program, as well as other abandoned vehicle projects, to a new company called Embr Motors, founded by Dave “Heavy D” Sparks, one of the Diesel Brothers.
Embr Motors now possesses the intellectual property associated with the Badger pickup truck, along with assets related to Nikola’s off-road and personal watercraft vehicles, as well as the only two prototype versions of the Badger ever produced.
This sale comes amidst ongoing turmoil at Nikola, including the recent failed attempt by disgraced founder Trevor Milton to install Sparks and others on the company’s board. Milton was sentenced to four years in prison for securities fraud and wire fraud, partly due to misleading investors about the Badger’s progress.
Although Nikola was primarily focused on hydrogen and electric big rigs since its founding, it unveiled the Badger pickup in 2020, shortly before going public. General Motors announced a $2 billion investment in Nikola to help bring the Badger to market, but this plan was derailed by allegations of false claims published by short-selling firm Hindenburg Research. Nikola refunded customer deposits for the Badger and halted the program following the controversy.
Dave “Heavy D” Sparks announced the purchase of Nikola’s Badger electric pickup truck assets in a recent YouTube video, revealing that the transaction involved “tens of millions” of dollars. Sparks disclosed that he had received Nikola stock in the past as part of a promotional arrangement for the Badger and noted his long-standing friendship with Trevor Milton, Nikola’s disgraced founder.
Nikola confirmed the sale details during its financial results announcement for 2023. Britton Worthen, Nikola’s chief legal officer, stated that Sparks and his partner, Cole Cannon, expressed interest in bringing the Badger to market and facilitated discussions with EV-related partners. As part of the deal, Nikola is loaning money to Embr Motors for the asset purchase, gaining a 30% stake in the company. Worthen mentioned that Nikola would reclaim 500,000 shares given to Sparks by Milton as part of the transaction. Additionally, Sparks and Cannon agreed to exclude Milton from involvement in their projects.
Worthen emphasized Nikola’s efforts to distance itself from Milton’s legal issues and underscored the company’s commitment to focusing on zero-emission class eight trucks. He also expressed Nikola’s opposition to Milton’s recent attempts to gain control of the company, stating that the current management and directors are better suited to lead Nikola.