Home Stock Markets Embattled Electric Truck Maker Nikola Delivers Good News

Embattled Electric Truck Maker Nikola Delivers Good News

by WOOWinvest
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Embattled Electric Truck Maker Nikola Delivers Good News

Nicola (NKLA) – Get Nikola Corporation Report Just keep the promise.

The electric truck maker has just taken a major step in its young history. This step could change his future. In fact, the group delivered the first batch of the long-awaited Tre battery electric truck (Tre BEV) in April. In fact, the company that started producing the Tre BEV at the end of March delivered 11 in April, a first.

Mark Russell, CEO of Nikola, said: “In the first quarter, we reached a significant milestone by beginning volume production of the Nikola Tre BEV at our manufacturing facility in Coolidge, Arizona, and are now delivering saleable trucks to dealers for customer delivery. .”, in the first-quarter press release.

“We look forward to scaling up production and delivering 300-500 production vehicles to customers this year,” he added.

This optimism is in stark contrast to the problems facing the entire auto industry today. The resurgence of Covid-19 in China has led authorities to impose a strict lockdown in the country, resulting in factory closures and ongoing supply chain disruptions. As a result, suppliers to automakers are struggling to keep up, which has slowed down car assembly considerably. In addition, Russia’s invasion of Ukraine has pushed up the price of raw materials such as nickel used in battery development.

Nikola assures its ability to manage supply chain issues

But Nikola explained that it has received commitments from suppliers to meet its 2022 delivery target.

“The ongoing war in Ukraine and the recent Covid-19 outbreak in China were factors we didn’t expect when we last discussed supply chain issues in February,” Chief Financial Officer Kim Brady told analysts on an earnings call. For months, China’s zero-virus policy has led to more bottlenecks and cost pressures.”

“While uncertainty remains about the magnitude and duration of any other supply chain impacts from this event, we continue to have a full commitment to our suppliers and are confident in our ability to meet our full-year target range without modification. Confidence. Based on our current line of sight, we reconfirmed the critical electrical components available to meet our delivery targets,” he added.

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Brady assured analysts that Nikola has enough batteries to make more than 500 Nikola Tre BEVs, and battery packs to make 300 to 500 Nikola Tre BEVs.

“Our supply chain team is working closely with battery pack suppliers to ensure there are no gaps in the supply of battery module chips that would disrupt Nikola’s manufacturing schedule,” the executive said.

So it’s logical for Nikola to make a prediction that surprises investors. The electric-vehicle truck maker expects second-quarter revenue to be between $15 million and $18 million on deliveries of 30 to 50 trucks. Those numbers were higher than analysts’ expectations, who expected second-quarter revenue of $11.5 million.

In the first quarter, Nikola generated $1.89 billion in revenue from the sale of charging trailers for its Tre battery-electric trucks. However, its net loss widened to $152.94 million from $120.2 million a year earlier.

Nikola’s vision seemed to clear up a bit. The company announced that it has successfully signed a letter of intent with a buyer to purchase its trucks. To date, the company said it has received purchase orders and MoU agreements for a total of 510 Nikola Tre BEVs.

In addition to the Tre BEV, the company is also developing a hydrogen fuel cell electric semi-truck, the Tre FCEV, that can carry cargo with a range of up to 500 miles and a refueling time of less than 20 minutes. longer distances.

“The Tre FCEV alpha pilot test with Anheuser-Busch in Southern California successfully concluded on April 29,” Nikola said. “Tre FCEV alphas logged over 12,000 miles in AB operations.”

Mass production is scheduled to start in the second half of 2023.

Nikola stock went public in May 2021 and is currently trading at around $6.75. They fell 41.3% in one year. Nikola shares have recently suffered a sell-off in growth stocks on Wall Street amid fears of a recession.

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