Nikola Corporation reports fourth quarter and full year 2022 results

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

“During the fourth quarter we strengthened our commercial and sales operations, which is expected to lead to increased sales and accelerated customer deliveries,” said Nikola CEO, Michael Lohscheller. “As a whole, we made significant progress on both the truck and energy infrastructure fronts. The advances we have made on battery charging and hydrogen solutions with strategic partners, and the unveiling of our hydrogen mobile fueler under the HYLA brand, will allow Nikola to provide fully integrated mobility solutions to customers for both the BEV and FCEV.”

Energy Business Progress

In January, we announced the launch of HYLA, our new hydrogen energy brand. HYLA will provide integrated and innovative energy solutions for customers. We also announced the completion of our first hydrogen mobile fueler, capable of refueling trucks at 10,000 psi. The mobile fueler, coupled with the 960 kg capacity hydrogen tube trailer, will provide a flexible fueling solution to fleets by enabling fueling at their depots. Mobile fuelers can also serve as an interim solution as permanent infrastructure is built and FCEV network density develops. Mobile fuelers can be deployed on demand in any environment at a fraction of the cost of permanent refueling infrastructure.

During the quarter we announced our intent to develop access to up to 300 metric-tons per day (TPD) of hydrogen supply and up to 60 dispensing stations by 2026, capable of supporting 7,500 FCEVs in service. Underpinning the 300 metric-TPD are a number of strategic partnerships and offtake agreements. To date we have announced the following projects and partnerships in the U.S. and Canada:

• • Phoenix Hydrogen Hub – initial production of 30 metric-TPD expanding up to 150 metric-TPD
    • Acquired 920-acre parcel of land in the City of Buckeye, AZ to develop Phoenix Hydrogen Hub
    • Invited to participate in Phase II of DOE loan process
    • Announced expected collaboration with FFI for hydrogen supply and infrastructure across North America

• • Plug Power Supply Partnership – up to 125 metric-TPD
  • KeyState Natural Gas Synthesis Supply Partnership – up to 100 metric-TPD
  • Crossfield, Alberta TC Energy project– up to 60 metric-TPD
  • Wabash Valley Resources Investment – up to 53 metric-TPD

On February 21 we also announced an additional planned station location in West Sacramento, California, bringing our total number of planned stations to four in California. We believe the introduction of the Nikola mobile fueler as well as other third party mobile fuelers in Nikola’s portfolio will augment permanent refueling infrastructure and accelerate the adoption of FCEVs by providing agile fueling solutions.

Nikola Tre FCEV Development

Tre FCEV pilot testing with Walmart and TTSI has been successfully completed. During the pilots the FCEV alphas accumulated over 7,800 and 9,500 miles respectively. As of today, we have completed the build and commissioning of 17 FCEV beta trucks and are now in the process of building 10 gamma trucks, which will be used for additional pilot testing and vehicle validation. We remain on track to begin SOP and expect to deliver the first FCEVs to customers in 2H 2023.

Ahead of SOP, our commercial and sales team is looking to secure binding orders and customer deposits. On December 15 we announced our strategic collaboration with Plug Power, including an order for up to 75 FCEVs, and on January 25, we announced that Biagi Brothers is expected to purchase 15 FCEVs in Q4 of this year. On February 7, we announced the Tre FCEV received HVIP incentive approval, allowing customers to receive an incentive worth up to $288,000 in California.

Nikola Tre BEV Commercialization

During the fourth quarter, we produced 133 Nikola Tre BEVs delivering 20 to dealers. We utilized the fourth quarter to improve our BEV product based on customer and potential customer feedback. We also released our over-the-air software update 2.0, which increased the Tre BEVs usable range and enabled 350kW DC fast charging.

On November 8 we announced our partnership with ChargePoint, allowing Nikola and our dealers to sell ChargePoint charging infrastructure and software to customers. This, along with our Mobile Charging Trailers, allows Nikola to offer customers an integrated mobility solution with trucks and a full suite of charging products.

To accelerate customer deliveries and refine our commercial strategy, Bruce Kurtt was hired as SVP Commercial and Sales. He brings over 30 years of medium and heavy-duty trucking experience and deep relationships in the trucking industry to Nikola. The expanded commercial, sales, and product management teams are leading product improvements and refining our go-to-market approach as we look to accelerate customer deliveries.

PlusDrive in Nikola Trucks

On February 22, we announced the selection of PlusDrive, the next generation safety system developed by Plus, for the Nikola Tre BEV and Nikola Tre FCEV in the U.S. The first factory-installed Nikola Tre BEVs and hydrogen electric vehicles that will incorporate enhanced driver assistance features powered by PlusDrive are expected to be available by the end of 2024.

European JV Updates

In Europe, the joint venture (JV) between Nikola and Iveco Group is delivering according to plans and the first serial BEV trucks will be delivered to customers by the end of this year. We anticipate serial BEV production will begin in Q3 and customer deliveries to begin soon after. Development of the EU spec FCEVs continued in the fourth quarter. We plan to begin Tre FCEV SOP in Q3 2024. The JV received its first LOI for 100 Tre FCEVs from GP Joule on January 23, and 20 from Richter Group on February 22. We continue to make progress on our partnership with E.ON. We are finalizing the JV agreement which we expect to execute by the end of Q1.

Coolidge, Arizona Manufacturing Facility

In Coolidge, progress continued on the Phase 2 assembly hall expansion, which is expected to be complete by the end of Q2. Once completed, the building hall nameplate capacity is expected to be up to 20,000 trucks per year. We plan to begin installation of the automated battery module and pack line and Bosch fuel cell power module assembly line in Q2. Once complete, we anticipate the automated battery module and pack line will provide up to $105,000 in cost savings per BEV.

Fourth Quarter and Full Year Financial Highlights

Business Outlook

We plan to achieve the following milestones in 2023:

• Complete the build of 10 gamma FCEVs by Q2 2023
• Realize approximately $105,000 in cost savings in battery modules and packs for each Tre BEV truck by Q4 2023
• Achieve Final Investment Decision for the Phoenix Hydrogen Hub by Q3 2023
• Announce at least two refueling station partners by June
• Deliver 250 – 350 Tre BEVs to dealers for the Full Year 2023
• Deliver 125 – 150 Tre FCEVs in Q4 2023

SOURCE: Nikola