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Nikola Corporation reports first quarter 2022 results

Began serial production of the Nikola Tre BEV on March 21

Nikola Corporation, a global leader in zero-emissions transportation solutions, today reported financial results for the quarter ended March 31, 2022.

“During the first quarter, we reached a significant milestone with the start of serial production for the Nikola Tre BEV at our Coolidge, Arizona manufacturing facility and are currently delivering saleable trucks to dealers for customer deliveries,” said Mark Russell, Nikola’s Chief Executive Officer. “We look forward to scaling production and delivering 300 – 500 production vehicles to customers this year.”

Nikola Tre BEV Update

During the first quarter, the final 10 of a total fleet of 40 pre-series Tre BEVs came off the line in Coolidge, Arizona. Pre-series trucks continue to be used in customer pilots, dealer demos, and internal R&D testing. On April 29, we successfully completed our first Tre BEV customer pilot with TTSI. We also successfully completed a 14-day pilot with Univar Solutions (NYSE: UNVR). We are currently undergoing pilot testing with several other customers, including Covenant Logistics (Nasdaq: CVLG).

On March 21, 2022, we began serial production of the Nikola Tre BEV in Coolidge, Arizona. We began shipping saleable Tre BEVs to dealers in April for customer deliveries. Customer POs for 134 trucks have been issued to our dealers utilizing California HVIP. To date, we have received POs, LOIs, and MOUs for a total of 510 Nikola Tre BEVs.

Nikola Tre FCEV Program Update

Tre FCEV alpha pilot testing with Anheuser-Busch (A-B) in Southern California was successfully concluded on April 29. The Tre FCEV alphas logged over 12,000 miles in A-B operations. FCEV alpha pilot testing is scheduled to begin with TTSI by the end of May. We plan to begin building the first six beta FCEV trucks by the end of Q2 2022 and complete them by the end of Q3 2022. This first batch is expected to be followed by builds of a second batch of five and a third batch of eight beta trucks. Each beta cohort will incorporate learnings from alpha fleet testing and previous batches. Validation of the beta fleet trucks is scheduled to progress through the first half of 2023, followed by the start of serial production planned in the second half of 2023.

Coolidge, Arizona Manufacturing Facility Update

Phase 1 of the Coolidge, Arizona facility is completed with a production capacity of 2,500 trucks. We have begun the Phase 2 assembly area expansion, which is expected to be completed in 2023 and provide a production capacity of up to 20,000 trucks per year on two shifts.

Energy Business Updates

In Q1, we selected our first dispensing station location with our station partner, TravelCenters of America (TA). Nikola and TA plan to jointly build hydrogen refueling infrastructure on TA’s existing station in Ontario, California along Interstate 10.

On April 26, 2022, TC Energy, in conjunction with Nikola, announced a plan to evaluate a hydrogen production hub in Crossfield, Alberta. The hub is expected to produce an estimated 60 tonnes of hydrogen per day, with the capacity to expand to up to 150 tonnes per day. Nikola is intended to serve as TC Energy’s anchor customer for the hub.

Dealer Network Expansion with Alta Equipment Group in Arizona

On March 23, 2022, we announced an expanded partnership with Alta Equipment Group covering the Arizona sales and service territory. Our sales and service network now covers 27 states with over 127 locations.

Announced Finance Agreement with ENGS Commercial Finance Co.

On March 29, 2022, we signed an agreement with ENGS Commercial Finance Co. to facilitate the sale of Class 8 Nikola Tre BEVs and FCEVs. Working directly through the Nikola dealer network, ENGS will offer a broad range of customer finance solutions for the purchase of Nikola vehicles, charging assets, and infrastructure requirements.

Strengthened Leadership Team and Board of Directors

On February 22, 2022, Michael Lohscheller was named President of Nikola Motor division, reporting to CEO Mark Russell. On February 24, 2022, Lynn Forester de Rothschild of Inclusive Capital Partners was appointed to the Board of Directors, replacing Jeff Ubben.

$200 Million Senior Notes Investment

On May 2, 2022, we announced a $200 million investment from funds advised by Antara Capital. The investment comes in the form of a senior unsecured note bearing interest of 8% if paid in cash, and 11% if paid by the issuance of additional notes. The notes will mature in May of 2026. We expect the note to fund in early June 2022.

First Quarter Financial Highlights

Business Outlook

Nikola looks forward to achieving the following milestones in 2022:

  • Deliver 300 to 500 production Tre BEV trucks
  • Successful FCEV alpha pilot testing with Anheuser-Busch and TTSI
  • Build, validate and test Tre FCEV beta trucks
  • Announce location, break ground, and commence construction of the first hydrogen production hub in Arizona
  • Announce two or more dispensing station partners in California

SOURCE: Nikola

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