SUCCESSFUL LAUNCH: NIKOLA PRODUCES 42, WHOLESALES 35 HYDROGEN FUEL CELL ELECTRIC TRUCKS FOR CUSTOMERS IN U.S. AND CANADA IN 2023

Rhea-AI Summary

Nikola Corporation (NKLA) produced and wholesaled 35 Class 8 hydrogen fuel cell electric vehicles (FCEVs) in 2023, with a range of up to 500 miles and an estimated fueling time as low as 20 minutes. The company aims to introduce a cleaner way to deliver goods to the North American market in a reliable package. Nikola's FCEV customer pilot programs have shown strong results, with truck uptime at 98%. The company is set to announce its 2023 financial results and 2024 outlook in the coming weeks.

Insights

Market Research Analyst

The production and wholesale figures disclosed by Nikola Corporation for their Class 8 hydrogen fuel cell electric vehicles (FCEVs) signify a noteworthy development in the zero-emissions transportation sector. The company's ability to design, assemble and commence the wholesale of these trucks in the United States and Canada is a testament to its operational capabilities and the growing market acceptance of alternative fuel vehicles. This aligns with the increasing demand for sustainable transportation solutions and could potentially influence the competitive landscape of the heavy-duty truck market.

The reported truck uptime of 98% in customer pilot programs is a critical metric, indicating high reliability which is essential for fleet operators. High uptime percentages are directly correlated with customer satisfaction and can lead to increased sales and brand loyalty. The company's focus on a diverse range of applications for their FCEVs, from drayage to specialized hauling, suggests a strategic approach to market penetration and could cater to a broad customer base.

Financial Analyst

Investors should note that Nikola Corporation's announcement of its production and wholesale numbers, without the completion of its quarterly review process or the preparation of its financial statements, provides limited financial transparency. The absence of concrete financial data makes it challenging to assess the company's profitability and cost structures associated with the production of FCEVs. However, the production of 42 vehicles and the commencement of wholesaling are indicative of progress towards scaling operations.

It's important to consider that the capital-intensive nature of the automotive industry, particularly within the zero-emissions segment, may imply significant upfront investments and a long-term horizon before realizing returns. The market will be looking closely at Nikola's upcoming financial results and 2024 outlook for indications of financial health, cash flow stability and insights into their production cost efficiencies.

Environmental Technology Analyst

Nikola Corporation's focus on zero-emissions FCEVs represents an important shift in the heavy-duty transportation industry towards sustainable practices. The environmental impact of transitioning from diesel-powered trucks to hydrogen fuel cell technology is substantial, as it can lead to a significant reduction in greenhouse gas emissions. The long range of up to 500 miles and the rapid estimated fueling time of as low as 20 minutes are competitive advantages that address common concerns regarding the practicality of zero-emissions vehicles for long-haul transportation.

The use of FCEVs in various pilot programs and the company's commitment to a zero tailpipe emission product line is indicative of their strategic positioning within the environmental sustainability trend. The success of these vehicles could serve as a catalyst for further investments in hydrogen infrastructure and technology, which are crucial for the widespread adoption of FCEVs.

PHOENIX, Jan. 4, 2024 /PRNewswire/ -- The elves weren't the only ones busy during the 2023 holiday season; Nikola Corporation (Nasdaq: NKLA), a global leader in zero-emissions transportation and energy supply and infrastructure solutions, via the HYLA brand, in 2023 produced 42 and wholesaled 35 Class 8 Nikola hydrogen fuel cell electric vehicles (FCEVs).

"What an effort by our dedicated and passionate team, to create — and deliver — what we believe is the only U.S. designed and assembled Class 8 hydrogen fuel cell electric truck on the road today," said Nikola CEO Steve Girsky. "Our pioneering spirit is what made it possible to wholesale these 35 trucks to our dealers for customers in the U.S. and Canada. We thank our employees, customers and partners for this achievement, and look forward to delivering more trucks in 2024."

Of the seven trucks produced but not wholesaled, three are being used in an extended field test with a fleet partner, two are in continued validation and engineering and two are being used for service training/customer demos.

Nikola's FCEV features a range of up to 500 miles and an estimated fueling time as low as 20 minutes.* The company believes its truck is among the longest ranges of all commercially available zero tailpipe emission Class 8 trucks, with versatile applications ranging from drayage and intermodal to metro-regional truckload and less-than-truckload to certain specialized hauling use cases. 

"Our goal is to introduce a better, cleaner way to deliver goods to the North American market in a reliable package," said Girsky. "Our FCEV customer pilot programs have shown strong results, with truck uptime at 98%**—crucial for efficient fleet usage."

Assembled in Coolidge, Ariz., the FCEV commenced serial production on July 31, 2023, with the commercial launch on September 28.  

NOTE: Nikola has not completed its quarterly review process or the preparation of its financial statements for the fourth quarter or year ended December 31, 2023. Nikola will announce information regarding 2023 financial results and 2024 outlook in the coming weeks.

ABOUT NIKOLA CORPORATION
Nikola Corporation's mission is clear: pioneering solutions for a zero-emissions world. As an integrated truck and energy company, Nikola is transforming transportation and over-the-road freight services. With our Class 8 vehicles, including battery-electric and hydrogen fuel cell electric trucks, and our energy brand, HYLA, we are driving the advancement of the complete hydrogen refueling ecosystem. This encompasses supply, distribution, and dispensing, reflecting our commitment to sustainable practices and a cleaner future.

Nikola is based in Phoenix, Ariz. with a manufacturing facility in Coolidge, Ariz. 

Experience our journey to achieve your sustainability goals at nikolamotor.com or engage with us on social media via Facebook @nikolamotorcompany, Instagram @nikolamotorcompany, YouTube @nikolamotorcompany, LinkedIn @nikolamotorcompany or Twitter @nikolamotor.

FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking statements within the meaning of federal securities laws with respect to Nikola Corporation (the "Company"), including statements relating to the range, refueling time, uses and potential benefits of its hydrogen fuel cell electric truck; the Company's beliefs regarding the competitive benefits of its hydrogen fuel cell truck;  the Company's belief that it is the only U.S. designed and assembled Class 8 hydrogen fuel cell electric truck currently on the road;  the Company belief that its truck is among the longest ranges of all commercially available zero tailpipe emission Class 8 trucks; the Company's belief it will deliver additional trucks in 2024; and the Company's beliefs regarding its competitive position and the benefits thereof. Forward-looking statements are predictions, projections, and other statements about future events based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: the ability of the Company to access sufficient capital to meet its requirements and fund its business; manufacturing delays and difficulties; risks related to the rollout of the Company's hydrogen fueling infrastructure and the timing thereof; construction risks and delays; the availability of access to hydrogen refueling facilities; the level of and cancellation of customer orders; risks associated with manufacturing batteries and fuel cell power modules; variations in and characteristics of the hydrogen fueling location, including but not limited to fueling hardware and software protocol, fuel amount, and fueling conditions, any of which may affect refueling times; variations in terrain, temperature, speed, road conditions, truck configuration, payloads and other variables which may affect range; the Company's ability to remain listed on Nasdaq; and the factors, risks and uncertainties  described in the "Risk Factors" section of the Company's quarterly report on Form 10-Q for the quarter ended September 30, 2023 filed with the SEC, in addition to the Company's subsequent filings with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and, except as required by law, the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

* Refueling time estimate depends on the characteristics of the hydrogen fueling location, including fueling hardware and software protocol, fuel amount, and fueling conditions. Actual refueling times will vary.

** Based on Nikola-measured customer demo performance from September to December 2023, "Gamma" pilot trucks.

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SOURCE Nikola Corporation

FAQ

How many Class 8 hydrogen fuel cell electric vehicles did Nikola Corporation produce and wholesale in 2023?

Nikola Corporation produced 42 and wholesaled 35 Class 8 Nikola hydrogen fuel cell electric vehicles (FCEVs) in 2023.

What is the range of Nikola's FCEV?

Nikola's FCEV features a range of up to 500 miles.

What is the estimated fueling time for Nikola's FCEV?

The estimated fueling time for Nikola's FCEV is as low as 20 minutes.

Where are Nikola's FCEVs assembled?

Nikola's FCEVs are assembled in Coolidge, Ariz.

What is the truck uptime for Nikola's FCEV customer pilot programs?

The truck uptime for Nikola's FCEV customer pilot programs is at 98%.

When will Nikola announce its 2023 financial results and 2024 outlook?

Nikola will announce information regarding 2023 financial results and 2024 outlook in the coming weeks.