- Up to 25 Tre BEV trucks are expected to be delivered to dealers and customers by the end of 2021 and Tre FCEV is on schedule, and testing has begun
- Continued progress building out the sales and service network with dealers in 28 states consisting of over 130 locations
- Ulm, Germany joint venture manufacturing facility inaugurated in September
- $125 million reserved to fund potential settlement with the SEC
- Nikola and the Staff of the Division of Enforcement at the SEC have been engaged in discussions regarding a resolution of the SEC’s investigation
PHOENIX — Nikola Corporation (Nasdaq: NKLA), a global leader in zero-emissions transportation solutions, today reported financial results for the quarter ended September 30, 2021.
“During the third quarter, we continued to execute on our business plan,” said Mark Russell, Nikola’s Chief Executive Officer. “Validation of the Nikola Tre BEV is progressing, with trucks now being test-driven and tested on public roads. We also formally inaugurated our joint venture manufacturing facility in Ulm, Germany, and entered into additional strategic partnerships to advance our hydrogen refueling ecosystem with TC Energy and OPAL Fuels.”
Russell added, “with prospects of an SEC settlement, we’re looking forward to resolving the outstanding issues relating to our founder and bringing that chapter to a close and maintaining our focus on delivering trucks to our customers, and building the energy, service, and support infrastructure our customers need.”
Nikola Tre BEV Validation and Pre-Series Progress
During the quarter, progress continued validating the Nikola Tre BEV in preparation for public road release in December 2021. As of today, we have completed eight (8) gamma trucks. We have begun building pre-series trucks in Coolidge, Arizona and continue to work steadfastly towards our commitment to deliver up to 25 trucks to dealers and customers by December 2021. The trucks will haul customer loads, gain real-world mileage accumulation, and in turn we expect to secure additional orders for 2022 volume and beyond.
Nikola Tre FCEV Alpha Update
As of today, we have built seven (7) Nikola Tre FCEV alphas, comprised of two (2) in Ulm and five (5) in Coolidge. Track testing has begun in both Ulm, Germany, and Phoenix, Arizona, and we continue to progress toward road release by the end of 2021. Footage of the Nikola Tre FCEV on the test track can be seen here.
Progress Made at Nikola’s Coolidge, Arizona Manufacturing Facility
We have begun our Nikola Tre BEV pre-series builds in Coolidge. Trucks are on the assembly line and in process. As we are building our pre-series trucks, we are concurrently expanding the Phase 1 assembly expansion area to enable our total production capacity in 2022 of 2,400 trucks per year on two (2) shifts.
We anticipate the expanded Phase 1 will be completed in January 2022, and the construction of Phase 2 will begin immediately after that. Phase 2 is expected to be completed in early 2023, at which time our assembly hall will be fully built out with an installed process capacity of 20,000 units per year. The facility will be capable of building the Nikola Tre BEV and FCEV trucks on the same line, and also assembling the Bosch fuel-cell modules.
Completion of our Joint Venture Manufacturing Facility on IVECO’s Industrial Complex in Ulm, Germany
On September 15, 2021, Nikola and IVECO officially inaugurated the Ulm Joint Venture Manufacturing Facility. We are currently building 10 pre-series Nikola Tre BEVs in Ulm, Germany.
Signed MoU with the Hamburg Port Authority for up to 25 Nikola Tre BEVs
On September 15, 2021, Nikola and IVECO signed an MoU with the Hamburg Port Authority during the inauguration of the Ulm, Germany joint venture manufacturing facility. The agreement states our joint intent to partner in two phases encompassing up to 25 Nikola Tre BEVs for delivery to the Port throughout 2022.
Expansion of Sales and Service Network
On August 10, 2021, and September 1, 2021, we announced the continued expansion of our sales and service network with the additions of Alta Equipment Group and Quinn Company. Alta Equipment will provide coverage in the Northeast, including New York, New Jersey, Eastern Pennsylvania, and select areas in the New England region. Quinn Company will provide sales and service coverage throughout Central and Southern California.
Signed MoU with OPAL Fuels to Co-Develop and Construct Hydrogen Refueling Stations and Infrastructure
On September 30, 2021, we entered into an MoU with OPAL Fuels, LLC (OPAL) to collaborate on the development, construction, and operation of hydrogen refueling stations in North America and the use of renewable natural gas (RNG) in hydrogen production. The initial focus of our collaboration will be on “behind the fence” solutions. Under the MoU, Nikola and OPAL intend to co-develop and co-market hydrogen refueling infrastructure to accelerate the adoption of FCEVs in North America.
Executed Second $300 Million Purchase Agreement with Tumim Stone Capital LLC
On September 27, 2021, we announced we entered into a second $300 million common stock purchase agreement with Tumim Stone Capital LLC (Tumim), bringing the total amount to $600 million. This financing agreement allows Nikola the right to sell shares to Tumim at our sole discretion and provides us with additional liquidity to execute our business plan. With the execution of this second purchase agreement, Nikola had approximately $1.1 billion of liquidity at the end of Q3 2021 ($587.0 million of cash on the balance sheet and $527.1 million available on the equity line).
Recent Developments
SEC Investigation Update
Nikola and the Staff of the Division of Enforcement at the SEC have been engaged in discussions regarding a resolution of the SEC’s investigation. The company expects that, if approved, the resolution would include a $125 million civil penalty paid in installments over time. Final resolution of this matter is subject to documentation satisfactory to all the parties, and completion of any settlement is contingent on a vote of the Commissioners of the SEC.
In addition, the Company intends to seek reimbursement from its founder, Trevor Milton, for costs and damages in connection with the government and regulatory investigations.
Signed Joint Development Agreement with TC Energy for Co-Development of Large-Scale Production Hubs
On October 7, 2021, we entered into an agreement with TC Energy to co-develop large scale clean hydrogen production hubs. Under this agreement, TC Energy and Nikola are actively collaborating to identify and develop projects to establish the infrastructure required to deliver low-cost and low-carbon hydrogen at scale in line with each company’s core objectives. A key objective of the collaboration is to establish hubs producing 150 tonnes or more of hydrogen per day near highly traveled truck corridors to fuel Nikola’s class 8 trucks.
Signed LOI for 100 FCEV Trucks with PGT
On October 14, 2021, we announced collaboration with PGT Trucking, Inc., including an LOI for Nikola to lease 100 Nikola Tre FCEVs to PGT following the satisfactory completion of a Nikola FCEV demonstration program. The lease would include the Nikola Tre FCEV, scheduled maintenance, and hydrogen fuel. Deliveries of the Tre FCEV to PGT are anticipated to begin in 2023, following when FCEV production begins in Coolidge, Arizona.
Entered into Long Term Battery Supply Agreement with LG Energy Solution
On October 20, 2021, we entered into a long-term supply agreement with LG Energy Solution, LTD. This supply agreement will provide additional battery cells for our trucks beginning in 2022 through 2029.
Tri-Eagle Sales to be Launch Customer for Ring Power and Nikola
On October 27, 2021, Tri-Eagle Sales reached an agreement to lease 10 Nikola Tre BEV trucks from Nikola sales and service dealer network member. Ring Power will provide the sales, repairs, maintenance, and energy infrastructure required to operate the Nikola Tre BEV trucks throughout the lease term.
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(In thousands, except share and per share data)
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Q3 2021 | Q3 2020 | Q3 2021 YTD | Q3 2020 YTD | |||||||||||||||||||
| Loss from operations | $ | (271,825) | $ | (117,278) | $ | (530,813) | $ | (235,898) | |||||||||||||||
| Net loss | $ | (267,567) | $ | (79,704) | $ | (531,022) | $ | (228,632) | |||||||||||||||
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Adjusted EBITDA (1)
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$ | (85,020) | $ | (58,751) | $ | (212,359) | $ | (134,814) | |||||||||||||||
| Net loss per share, basic | $ | (0.67) | $ | (0.21) | $ | (1.34) | $ | (0.76) | |||||||||||||||
| Net loss per share, diluted | $ | (0.68) | $ | (0.31) | $ | (1.35) | $ | (0.79) | |||||||||||||||
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Non-GAAP net loss per share, basic(1)
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$ | (0.22) | $ | (0.16) | $ | (0.56) | $ | (0.44) | |||||||||||||||
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Non-GAAP net loss per share, diluted(1)
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$ | (0.22) | $ | (0.16) | $ | (0.56) | $ | (0.44) | |||||||||||||||
| Weighted-average shares outstanding, basic | 400,219,585 | 377,660,477 | 395,691,795 | 318,315,891 | |||||||||||||||||||
| Weighted-average shares outstanding, diluted | 400,230,669 | 378,286,678 | 395,860,876 | 318,976,447 | |||||||||||||||||||
Business Outlook
Nikola looks forward to achieving the following milestones in the fourth quarter of 2021:
•Deliver pre-series Nikola Tre BEVs for use on public roads hauling customer freight;
•Announce additional fleet testing dealers/customers;
•Purchase land for our first centralized hydrogen production hub facility and/or commercial on-site gaseous generation station; and
•Announce additional hydrogen infrastructure/ecosystem partners
About Nikola Corporation
Nikola Corporation is globally transforming the transportation industry. As a designer and manufacturer of zero-emission battery-electric and hydrogen-electric vehicles, electric vehicle drivetrains, vehicle components, energy storage systems, and hydrogen station infrastructure, Nikola is driven to revolutionize the economic and environmental impact of commerce as we know it today. Founded in 2015, Nikola Corporation is headquartered in Phoenix, Arizona. For more information, visit www.nikolamotor.com
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