NIKOLA TO COMPLETE BATTERY MANUFACTURING MOVE FROM CYPRESS, CALIF. TO COOLIDGE, ARIZ. BY APRIL 2023

Rhea-AI Summary

Nikola Corporation (NASDAQ: NKLA) announced it will complete the transition of its battery manufacturing from Cypress, California, to its facility in Coolidge, Arizona, by April 2023, ahead of schedule. This strategic move aims to unify truck assembly, fuel cell power module assembly, and battery production to enhance efficiency and reduce costs. The transition also includes automation of the battery line for quality improvements. Nikola's CEO, Michael Lohscheller, expressed satisfaction with the swift execution of the plan. A battery engineering team will remain in California for software development. The announcement follows Nikola's acquisition of Romeo Power in October 2022.

Positive

• Transitioning battery manufacturing ahead of schedule supports operational efficiency.
• Bringing various manufacturing processes under one roof is expected to reduce costs.
• Battery line automation may enhance quality and efficiency.

Negative

• None.

Ahead of schedule, company expedites ability to bring manufacturing under one roof

PHOENIX, March 16, 2023 /PRNewswire/ -- Nikola Corporation (Nasdaq: NKLA), a global leader in zero emission transportation and energy supply and infrastructure solutions, via the HYLA brand, today announced that the move to transition battery manufacturing from Cypress, Calif. to its Coolidge, Ariz. manufacturing facility is expected to be complete by April 2023, months ahead of the original schedule.

The ability to expedite this process further supports Nikola's ongoing commitment to implement cost-saving measures by bringing the Nikola truck assembly, fuel cell power module assembly, and battery module and pack production under one roof. This includes battery line automation geared toward improving quality and increasing efficiencies.

"Over the past several months, the Nikola team has been working to ensure the battery production transition plan was seamless and on schedule," said Michael Lohscheller, Nikola Corporation President and CEO. "We are pleased with the speed in which the plan has occurred and are grateful for the Cypress team's contribution."

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 and announced the plan to transition the battery manufacturing to Coolidge, Ariz. on January 13, 2023.

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 via the HYLA brand, 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 annual report on Form 10-Q for the year ended December 31, 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 timeline for Nikola's battery manufacturing move?

Nikola expects to complete its battery manufacturing transition from Cypress, California, to Coolidge, Arizona, by April 2023.

How does the manufacturing transition impact Nikola's costs?

The move aims to implement cost-saving measures by consolidating manufacturing processes.

What role will California play in Nikola's future operations?

A battery engineering presence will remain in California for the development of battery management system software.

What recent acquisition did Nikola complete?

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