Nikola says its hydrogen-powered Nikola Two long-haul truck will offer range of up to 900 miles per fueling when it arrives in 2024.
Nikola
Nikola Corp.’s shares jumped after it posted a quarterly loss that was smaller than analysts expected and the electric semi-truck developer said it’s moving ahead with plans to start production this year. Yet ongoing reviews by regulators triggered by the company founder’s false statements still cloud its outlook.
Phoenix-based Nikola, which isn’t yet generating revenue, reported a net loss of $120.2 million in the first quarter, or 14 cents per share, excluding some items. That beat consensus expectations of a loss of 27 cents per share.
The shares surged in Nasdaq trading Friday, up 13% to $11.46 at 1 p.m. New York time.
Five pre-production units of Nikola’s battery-powered Tre truck built in Ulm, Germany, with partner Iveco are undergoing testing in the U.S. with nine additional units on the way. The company said it’s on track to start commercial production of zero-emission big rigs by August, with units getting to initial customers in 2021’s fourth quarter. It’s also working to complete construction of its own factory in Coolidge, Arizona, that will build Tre and Nikola Two semis, powered by either batteries or hydrogen fuel cells.
“We have had continued success in commissioning and validating the Nikola Tre BEVs, and are nearing completion of both our Ulm, Germany and Coolidge, Arizona manufacturing facilities,” CEO Mark Russell said in a statement.
The company is working to regain its footing after founder Trevor Milton was accused of lying about Nikola’s technology, triggering reviews by the Securities and Exchange Commission and U.S. Justice Department. The company also disclosed today in an SEC filing that the regulator issued an additional subpoena on March 24 related to its “projected 2021 cash flow and anticipated use of 2021 capital raises.” Nikola said it’s cooperating with the investigations.
The ongoing inquiries cloud more positive developments for the company in the past month, including a partnership to build a hydrogen fuel pipeline Europe, sales and service plans for its trucks and its intention to install hydrogen fuel stations at TravelCenters of America truck stops. Nikola this week also said it has a tentative deal for 100 battery- and hydrogen-powered trucks from Total Transportation Services Inc., a high-volume trucker that hauls cargo in and out of the ports of Los Angeles and Long Beach.
In addition to beginning Tre production in Germany this year, Nikola said it will begin trial production of trucks at the new Coolidge plant in July. It also aims to start construction of its first commercial hydrogen fuel station this year.
While Milton was a flamboyant figure who styled himself as a transportation industry disruptor in the mold of Elon Musk, making audacious claims for Nikola’s proprietary technology, the company’s vision for hydrogen as a clean option to power heavy-duty vehicles has been dramatically amplified in the competing plans of industrial giants including Daimler, Volvo Group, Toyota, Hino, Hyundai, Cummins, General Motors and Navistar. The consensus among those companies is that batteries are a good option for shorter ranges, up to 300 miles, while hydrogen is more appealing for distances of 500 miles or more and for fast refueling.
