Nikola Company, a worldwide chief in zero-emissions transportation and power provide and infrastructure options, by way of the HYLA model, at the moment 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 expect the competitors is nicely behind us and consider 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 pleased with the Nikola crew and have loved main such a proficient and resilient group in my first quarter as CEO. We proceed to draw world-class folks to execute on our marketing strategy and work in direction of establishing ourselves because the chief in zero-emissions business transportation.”

Robust business tailwinds

We consider there are robust business tailwinds selling the adoption of zero-emissions autos. In California, starting January 1, 2024, all new vehicles registered with the California Air Sources Board for operation in California ports should be zero-emissions. Along with laws requiring fleets to transition to zero-emissions vehicles, there are additionally incentives equivalent 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 vehicles.

There are over 30,000 (1) vehicles working in California’s ports, all of which is able to must be changed as they age. We consider this represents a major alternative for Nikola within the close to time period and are nicely on our solution 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 crew is difficult at work in search of each alternative to promote our vehicles and changing fleets to Nikola clients.

Hydrogen gas cell electrical truck

On September 28, 2023, we formally launched the mannequin 12 months 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 clients, sellers, suppliers, power companions, members of the media, and authorities officers.

So far, Nikola and our sellers have acquired 277 non-binding orders from 35 clients for the hydrogen gas cell electrical truck. We stay laser-focused on go-to-market actions in California. Our gross sales crew is on the bottom every day working carefully with our sellers and clients to search out the very best alternatives.

Buyer demos have began in Southern California utilizing hydrogen cellular fueling options and third-party fueling infrastructure to help fleet operations. So far, the hydrogen gas cell electrical vehicles in demo have accrued greater than 6,000 miles whereas reaching 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. In consequence, our crew has determined to interchange the Romeo packs on present buyer battery-electric vehicles with an alternate resolution.

Prices to Nikola for this recall and restore is predicted 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 vehicles that have been beforehand offered with an alternate battery pack resolution.

Precise money disbursements are anticipated to happen over the subsequent 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 vehicles in our stock, leading to an estimated web money spend of $38.1 million. We anticipate delivering battery-electric vehicles to clients once more in Q1 2024.

Power

With the launch of the hydrogen gas cell electrical truck, our crew is concentrated on guaranteeing now we have ample hydrogen provide and fueling options to help buyer operations. We now have secured ample hydrogen provide to help buyer operations in 2023 and the start of 2024. Our power crew 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 Sources Board; Class 8 tractors in drayage operation

SOURCE: Nikola