Nikola Sells Badger Assets to Embr Motors, Owned by Popular TV Personality Heavy D
Newly founded electric trucking company, Nikola, has recently finalized the sale of its Badger electric pickup truck program to a new player in the market – Embr Motors. The proud owner of Embr Motors is none other than popular vehicle builder and television personality Dave “Heavy D” Sparks. Along with the Badger assets, Embr Motors has also acquired the intellectual property associated with Nikola’s abandoned off-road and personal watercraft vehicles, as well as the only two existing prototype versions of the Badger.
This news has come at an unexpected time, considering recent events surrounding Nikola. Just weeks ago, the company’s discredited founder Trevor Milton announced plans to install Sparks and a team of directors on the company’s board, which ultimately failed. In December of last year, Milton was sentenced to four years in prison for securities fraud and wire fraud, partly due to misleading investors about the progress of the Badger program.
From its establishment in 2014, Nikola has been primarily focused on producing hydrogen and electric big rigs. However, in February 2020, the company made a surprising move, revealing plans for the Badger pickup truck just months before going public through a merger with a special purpose acquisition company. In September of the same year, General Motors announced a $2 billion investment in Nikola and their collaboration to bring the Badger to market.
Unfortunately, this was followed by a damning report by short-selling research firm Hindenburg Research, which exposed several false claims made by Nikola. This sparked a government investigation, leading to a settlement with the SEC and Milton’s resignation and eventual conviction. As a result, Nikola refunded all customer deposits for the Badger and halted the program.
This week, Sparks officially announced the purchase of the Badger assets in a YouTube video titled “The Nikola Badger is REAL and I Own Them.” In the video, he shares that the transaction involved “tens of millions” of dollars and explains his previous involvement with Nikola. Sparks reveals that he was given company stock as part of an arrangement to promote the Badger before its downfall and also mentions his close relationship with Milton.
On Thursday morning, Nikola confirmed the sale and shared some details during their financial results call for 2023. According to Britton Worthen, the company’s chief legal officer, Sparks and his partner Cole Cannon expressed interest in bringing the Badger to market and even brought several EV-related partners to the negotiation table. Under the agreement, Nikola is essentially lending money to Embr to purchase the assets and, in return, receiving a 30% stake in the company. This could potentially “retain some value for its shareholders” if anything ever comes of the Badger or the other vehicles.
Worthen also reveals that Nikola will be reclaiming 500,000 shares previously given to Sparks by Milton as part of their deal. Furthermore, Sparks and Cannon have agreed that Milton will have no involvement “directly or indirectly in any way” with these projects.
“On behalf of Nikola, we have strived to avoid any involvement in Mr. Milton’s legal proceedings and stay focused on our goal of bringing zero-emission class eight trucks to the market,” says Worthen. He also comments on the irony of Milton’s attempt to take control of Nikola after all that has happened, emphasizing that the current management and directors are better equipped to run a clean energy and clean tech company than a team lacking relevant experience.
TechCrunch reached out to Cannon for further comments on their involvement with the Badger program but has yet to receive a response. With the sale of assets and new ownership, only time will tell the future of the once-hyped Badger pickup by Nikola.
