Nikola (NASDAQ:NKLA) is a US-based EV manufacturer and alternative energy company. It was founded in 2014 by Trevor Milton and began delivering its first vehicles in 2021. The company is focused on developing a line of heavy-duty BEV trucks as well as fuel-cell vehicles, fuel-cell and BEV charging facilities and other alternative energy endeavors. The company is committed to the shift to green energy and believes that fuel-cell and BEV technology both have a role to play. Fuel cells offer a greater range until BEV technology can catch up with what is possible from ICE engines.
The company operated as a private entity from its incorporation in 2014 until 2020. At that time, the company came out with multiple concept vehicles that have not come into production. The company came to the public market via an IPO/merger with a SPAC or special purpose acquisition company. The merger was completed in early June 2020 and the stock began trading on June 4th. Later that same year, the company announced it would make its flagship truck's first delivery, the Tre, in early 2021.
Nikola made its first 2 deliveries in January 2021 and had completed 93 trucks by August. The momentum was curtailed, however, by a recall related to safety-belt issues that have no bearing on the operability of the vehicles. The Tre is a Class 8 freight hauler that comes with a 9-battery power pack and can reach 80% charge in under 3 hours. The range of the Tre is about 330 miles, making them good for short-haul scenarios. The original model is the US BEV version with a Day Cab setup. Fuel-cell versions are expected in late 2023 including a Sleeper-Cab setup.
Nikola's shares rose meteorically in the wake of the IPO but a scandal in the C-suite shook the market’s confidence. Founder Trevor Milton was accused of and found guilty of false statements while in position. Those statements included plans for the Badger pickup truck and inflated vehicle-reservation figures. Mr. Milton is still among the company’s largest shareholders.
Today, Nikola is a more focused company. It operates as a technology company working to develop transportation solutions for the commercial market. The company is organized into 2 segments, Truck and Energy, with operations divided between them. The Truck segment manufactures the Tre and is developing additional vehicles to round out the commercial lineup. The Energy segment is building a network of hydrogen and BEV fueling stations.
The goal with fuel cells is to produce hydrogen at a cost comparable to diesel but with the lowest carbon footprint possible. That means utilizing locally available sources and leaning heavily on natural gas for hydrogen production. The company has a strategic partnership with hydrogen producer Plug Power that involves each using the others’ products to build out their respective net-zero emissions networks.
Nikola's revenue in 2022 was just over $18 million. The company employs about 900 people directly and is headquartered in Phoenix, Arizona.
