On Monday, June 8, early in the morning CNH Industrial (which owns IVECO) announced that “IVECO now holds 25,661,449 shares of Nikola Corporation, corresponding to approximately 7.11% of Nikola outstanding share capital.”
CNH Industrial N.V. invested $250 million in Nikola Corporation through IVECO so far and is set to produce Nikola trucks through their European Joint Venture in Ulm, Germany, at the IVECO manufacturing facility.
But on a question :”Who owns the factory in Ulm?” CEO of Nikola Corp answered that it is a 50/50 JV.
Joint venture between Nikola and Iveco. We both split the costs associated with getting the factory up to speed. 50/50— Trevor Milton (@nikolatrevor) June 6, 2020
The $250 million invested by IVECO are said to be $100m cash + $100m in engineering services + $50m in licensing.
Investing early in NKLA stocks (getting 7.11% of NKLA shares) IVECO did what Daimler did with Tesla in 2009. In 2009, Daimler paid $50m to acquire a 10% stake in Tesla — a stake Daimler later sold in 2014 for roughly $780 million.
At the current market price of Nikola, the valuation of the 7.1% share owned by Cnh Industrial is some $923 million, which implies a capital gain of 673 million dollars compared to the book value. of 250 million dollars, approximately 7% of the market capitalization of Cnh Industrial .