Nikola, an EV startup once fallen into the slump of fraud, has been putting all efforts in vehicle production this year, and managed to surpass projections of all analysts, followed by a comeback from rock bottom under a surge of 6.3% in share prices.
Nikola, the EV startup that once claimed it would remove Tesla from its throne, was thought to be another Silicon Valley startup fraud seeing how the manufacturer was constantly delaying its mass production, and its founder stepping down after being indicted with fraud. To everyone’s surprise, Nikola has managed to come back with a vengeance.
Nikola managed to delivery 48 units of electric trucks during the second quarter, and produced a total of 50 units of the battery electric truck Tre, which are although lower than the company’s expectation, had left everyone in awe since analysts had long given up trusting Nikola’s estimated figures.
Nikola achieved a revenue of US$18.1 million this quarter, and has access to US$529 million of available cash. Although the company is still sitting on losses, the growth in delivered quantity has finally invigorated morale.
CFO of Nikola commented that it was the delay of battery units that prevented the company from achieving the initial delivery target, though the progress is now back on track, and the annual delivery target of 300-500 units remains unchanged.
The Arizona plant is gradually back on track, and is expected to attain an output of 5 units for each rotation by November. The second phase expansion of the plant will complete during the first quarter of next year, and capacity would once again elevate then.
The electric truck initially proposed by Nikola is adopted with hydrogen fuel cells, though the technology was unattainable, and the direction was sealed off after multiple financing and IPO. The company came up with an emergency solution that is the Tre BEV, which is adopted with lithium batteries, and currently under mass production.
The tractor of the Tre BEV is configured with a 753kWh battery unit, and is capable of a maximum driving range of 560km, which although is far below from the several thousands of kilometers previously proclaimed, is quite sufficient for logistics operators.
50 units may not seem a lot at this point of time, but they are substantially important since Tesla has also yet to fully mass produce its battery electric truck Semi. Despite trailing in specifications, the early delivery of Tre BEV means that Nikola is able to first receive government subsidization, as well as attain targeted carbon reduction figures in advance, which is why many businesses chose to place their orders with Nikola, even with the apparent risks.
Investors are boosted in confidence having seen the better-than-expected delivery quantity, which led to a surge of 6.3% in Nikola’s share prices, and closed at US$7.9.
(Cover photo source: Nikola)