Nikola Company, a worldwide chief in zero-emissions transportation and power provide and infrastructure options, by way of the HYLA model, at this time reported monetary outcomes and enterprise updates for the quarter ended September 30, 2023.

“We’re driving ahead, capitalizing on our first-mover benefit with our hydrogen gas cell electrical truck and laying the muse for the ‘hydrogen freeway’ beginning in California,” mentioned Nikola CEO Steve Girsky. “We predict the competitors is effectively behind us and imagine there may be white house for us to seize market share with the introduction of the Superior Clear Fleets Rule, and incentives like HVIP and ISEF providing as much as $288,000 and $408,000, respectively, per hydrogen gas cell electrical truck in California.”

“I’m happy with the Nikola group and have loved main such a gifted and resilient group in my first quarter as CEO. We proceed to draw world-class individuals to execute on our marketing strategy and work in direction of establishing ourselves because the chief in zero-emissions industrial transportation.”

Robust business tailwinds

We imagine there are sturdy business tailwinds selling the adoption of zero-emissions autos. In California, starting January 1, 2024, all new vans registered with the California Air Assets Board for operation in California ports have to be zero-emissions. Along with rules requiring fleets to transition to zero-emissions vans, there are additionally incentives comparable to HVIP and ISEF providing as much as $288,000 and $408,000, respectively, per hydrogen gas cell electrical truck in California, selling the acquisition of zero-emissions vans.

There are over 30,000 (1) vans working in California’s ports, all of which can have to be changed as they age. We imagine this represents a big alternative for Nikola within the close to time period and are effectively on our technique to capturing market share. As of October 27, 2023, for HVIP voucher requests in 2023, our hydrogen gas cell electrical truck represented roughly 96% of the created vouchers for hydrogen gas cell electrical truck-tractors, and our battery-electric truck represented roughly 50% of the created vouchers for battery electrical truck-tractors. Our group is tough at work in search of each alternative to promote our vans and changing fleets to Nikola prospects.

Hydrogen gas cell electrical truck

On September 28, 2023, we formally launched the mannequin yr 2024 hydrogen gas cell electrical truck at our state-of-the-art manufacturing facility in Coolidge, Arizona. The occasion attracted roughly 900 in-person attendees, together with prospects, sellers, suppliers, power companions, members of the media, and authorities officers.

To this point, Nikola and our sellers have obtained 277 non-binding orders from 35 prospects for the hydrogen gas cell electrical truck. We stay laser-focused on go-to-market actions in California. Our gross sales group is on the bottom day by day working carefully with our sellers and prospects to seek out the most effective alternatives.

Buyer demos have began in Southern California utilizing hydrogen cellular fueling options and third-party fueling infrastructure to assist fleet operations. To this point, the hydrogen gas cell electrical vans in demo have gathered greater than 6,000 miles whereas attaining 98% uptime.

Battery-electric truck

In August we issued a voluntary recall for the battery-electric truck. Upon additional investigation, it was decided that the compromise of the battery packs was not restricted to solely the coolant manifold. Consequently, our group has determined to interchange the Romeo packs on present buyer battery-electric vans with an alternate resolution.

Prices to Nikola for this recall and restore is anticipated to be roughly $61.8 million (accrued as a guaranty legal responsibility in Q3 2023), which incorporates the estimated price to re-engineer, validate, and retrofit the battery-electric vans that had been beforehand offered with an alternate battery pack resolution.

Precise money disbursements are anticipated to happen over the following 9 to 12 months and are anticipated to be partially offset by assortment of $10.7 million of accounts receivable and a $13 million money contribution from sale of the remaining battery-electric vans in our stock, leading to an estimated web money spend of $38.1 million. We anticipate delivering battery-electric vans to prospects once more in Q1 2024.

Vitality

With the launch of the hydrogen gas cell electrical truck, our group is targeted on making certain we have now enough hydrogen provide and fueling options to assist buyer operations. We have now secured enough hydrogen provide to assist buyer operations in 2023 and the start of 2024. Our power group is working diligently forward of truck gross sales to acquire further provide and infrastructure options for 2024 and past.

Third Quarter Monetary Highlights

(1) Knowledge from California Air Assets Board; Class 8 tractors in drayage operation

SOURCE: Nikola