The saga of the Nikola Badger, the electric pickup truck once slated to be a flagship vehicle for Nikola Corporation, takes an unexpected turn. Embr Motors, a newly formed company led by Dave “Heavy D” Sparks of Diesel Brothers fame, has acquired the assets of the abandoned Badger project. This acquisition breathes new life into the Badger, along with Nikola’s sidelined off-road and personal watercraft programs. Embr Motors now owns the intellectual property and, notably, the only two existing Badger prototypes.
This development arrives amidst a tumultuous period for Nikola, particularly with its founder, Trevor Milton, attempting to nominate Sparks and others to Nikola’s board of directors – an effort ultimately rejected. Milton’s past legal troubles, including a securities fraud conviction related in part to misleading statements about the Badger’s progress, culminated in a four-year prison sentence in December.
Nikola, since its inception in 2014, primarily focused on hydrogen and electric heavy-duty trucks. The Badger pickup, unveiled in February 2020 just before Nikola went public, was intended to diversify their portfolio. A significant partnership was announced in September 2020 when General Motors declared a $2 billion investment and pledged to assist in bringing the Badger to market. However, this momentum was derailed by a report from Hindenburg Research alleging fraudulent claims by Nikola. The fallout included government investigations, SEC settlements, Milton’s resignation and subsequent conviction, and ultimately, the Badger project being shelved and customer deposits refunded.
Sparks publicly announced the Badger acquisition in a YouTube video titled “The Nikola Badger is REAL and I Own Them,” revealing the transaction involved “tens of millions” of dollars. He also disclosed receiving Nikola stock for promoting the Badger prior to its cancellation and his long-standing friendship with Milton.
Nikola’s 2023 financial results announcement confirmed details of the sale. Britton Worthen, Nikola’s chief legal officer, explained that Sparks and his partner, Cole Cannon, expressed strong interest in reviving the Badger project, bringing in “several EV-related partners” during negotiations. The deal is structured as a loan from Nikola to Embr Motors for the asset purchase, in exchange for a 30% equity stake in Embr. This arrangement allows Nikola to potentially recoup value from the Badger and other vehicle programs if Embr’s endeavors prove successful.
Furthermore, Nikola is reclaiming 500,000 shares initially given to Sparks by Milton. A key condition of the agreement is the complete exclusion of Trevor Milton from any involvement, direct or indirect, with these projects.
Worthen emphasized Nikola’s focus on its core mission of delivering zero-emission class eight trucks, distancing the company from Milton’s controversies. He highlighted the irony of Milton’s recent attempt to influence Nikola’s direction, asserting that the current leadership is better suited for the company’s future in clean energy and technology.
While TechCrunch’s request for comment from Cole Cannon remained unanswered at the time of the original report, the acquisition by Embr Motors signals a potential resurgence for the Nikola Badger. Whether Heavy D Sparks and Embr Motors can successfully bring the Badger electric pickup to market remains to be seen, but the project has undeniably been given a second chance.
