Nikola Moves Battery Manufacturing to Coolidge, Ariz.

Rhea-AI Summary

Nikola Corporation (NASDAQ: NKLA) announced the relocation of its battery manufacturing from Cypress, California, to Coolidge, Arizona. This transition, expected to be completed by early Q3 2023, consolidates multiple production lines, including truck assembly and battery module production, under one roof. The move emphasizes Nikola's commitment to optimizing costs and enhancing operational efficiencies. Nikola will maintain operations in Cypress until the end of Q2 2023 while implementing a transition plan. Despite the relocation, a battery engineering presence will remain in California for software and module development. This strategic shift follows the acquisition of Romeo Power in October 2022.

Positive

• Consolidation of manufacturing operations in Coolidge expected to improve efficiencies.
• Relocation aligns with company's strategy to optimize cost structure.

Negative

• Closure of the Cypress facility may lead to potential job losses in California.

Cypress, Calif. Production Facility to Close by July 2023

PHOENIX, Jan. 13, 2023 /PRNewswire/ -- Nikola Corporation (Nasdaq: NKLA), a global leader in zero emission transportation and energy supply and infrastructure solutions, today announced that it is moving its battery manufacturing from Cypress, Calif. to its Coolidge, Ariz. manufacturing facility. The move, which the company expects to complete by early Q3, brings Nikola's truck assembly, fuel cell power module assembly, and battery module and pack production under one roof and includes battery line automation geared toward improving quality and increasing efficiencies. 

The company intends to maintain manufacturing operations in Cypress through the end of Q2 2023, while it brings its production capabilities in Coolidge online and works through a detailed transition plan to prevent manufacturing disruptions.

"This decision reinforces our commitment to finding ways to optimize our cost structure and create a sustainable business model," said Michael Lohscheller, Nikola Corporation President and CEO. "We remain focused on meeting our 2023 milestones, including pack and module production targets."

A battery engineering presence is expected to remain in California at a separate facility to focus on the development of Nikola's next generation battery management system software and modules.

Nikola completed the acquisition of Romeo Power on October 14, 2022.

ABOUT NIKOLA CORPORATION

Nikola Corporation is globally transforming the transportation industry. As a designer and manufacturer of zero tailpipe emission battery-electric and hydrogen-electric vehicles, electric vehicle drivetrains, vehicle components, energy storage systems, and hydrogen station infrastructure, Nikola is driven to revolutionize the economic and environmental impact of commerce as we know it today. Founded in 2015, Nikola Corporation is headquartered in Phoenix, Arizona. For more information, visit www.nikolamotor.com or Twitter @nikolamotor.

FORWARD LOOKING STATEMENTS

Certain statements included in this press release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "would," "plan," "predict," "potential," "seem," "seek," "future," "outlook," and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding the company's expectations regarding the potential benefits received from moving battery manufacturing to Coolidge, Arizona and its effect on company cost savings measures; business model and strategy; the company's expectations regarding its projected truck builds and related specifications; the company's expectations for its trucks and market acceptance of electric trucks; and market opportunity. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of Nikola's management and are not predictions of actual performance. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements, including but not limited to general economic, financial, legal, regulatory, political and business conditions and changes in domestic and foreign markets; the potential effects of COVID-19; the outcome of legal proceedings to which Nikola is, or may become a party; failure to realize the anticipated benefits of the recently completed business combination with Romeo; the conversion of pre-orders into binding orders; risks related to the rollout of Nikola's business and the timing of expected business milestones; the effects of competition on Nikola's future business; the availability of capital; and the other risks detailed from time to time in Nikola's reports filed with the Securities and Exchange Commission, including its quarterly report on Form 10-Q for the quarter ended September 30, 2022 and other documents Nikola files with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. These forward-looking statements speak only as of the date hereof and Nikola specifically disclaims any obligation to update these forward-looking statements.

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SOURCE Nikola Corporation

FAQ

What is the recent announcement by Nikola Corporation regarding battery manufacturing?

Nikola Corporation announced it is relocating its battery manufacturing from Cypress, California, to Coolidge, Arizona, expected to complete by early Q3 2023.

How does the move to Coolidge benefit Nikola Corporation?

The move consolidates various production lines, improving operational efficiencies and optimizing costs.

When will the Cypress facility close?

The Cypress facility will continue operations through the end of Q2 2023.

What does Nikola plan to do with its engineering presence in California?

Nikola will maintain a battery engineering presence in California focused on developing battery management system software and modules.

What was Nikola's recent acquisition mentioned in the press release?

Nikola completed the acquisition of Romeo Power on October 14, 2022.