Nikola Corporation shared its Q1 results for 2022 and things are looking up. In addition to a small but noteworthy gross profit, the previously ill-famed commercial EV manufacturer began delivering some BEVs and has purchase orders (POs) or letters of intent (LOIs) for hundreds more. Nikola also continues to make strides in expanding its Arizona manufacturing facility.
Nikola Corporation ($NKLA) is an American manufacturer of zero-emission vehicles (ZEVs) that publicly demonstrated a BEV- and hydrogen fuel cell-powered roller coaster ride of profound hype and catastrophic failure.
Still, the automaker has done away with the tumorous personnel and has continued to fight beyond the realm of relevance and into scalable production. While its numbers are still diminutive, Nikola appears to be on the right track according to its Q1 results for 2022. Here are some of the highlights:
Pre-series Tre BEVs and pilot programs
According to Nikola’s Q1 2022 report, the final 10 of 40 pre-series Tre BEVs rolled off its assembly line in Coolidge, Arizona. These pre-series EVs continue to be used for demos, R&D, and pilot programs. Speaking of pilot programs, Nikola completed two this quarter. The first customer pilot program with TTSI concluded on April 29 and is joined by a second successful 14-day pilot with Univsar Solutions. Other pilot programs are still underway.
Tre BEV production and sales for Q1 2022
Nikola Corporation began serial production of its Tre BEV truck in Coolidge on March 21 and began shipping production trucks to dealers last month. However, it only delivered 11 for the quarter.
That being said, Nikola is reporting POs for 134 additional Tre BEVs to customers in California, utilizing the state’s Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP), which saves them $120,000 per truck. Combining its POs, LOIs, and memorandums of understanding (MOUs), Nikola says it has received inquiries for 510 Tre BEVs to date. Nikola CEO Mark Russell shared his thoughts:
During the first quarter, we reached a significant milestone with the start of serial production for the Nikola Tre BEV at our Coolidge, Arizona, manufacturing facility and are currently delivering saleable trucks to dealers for customer deliveries. We look forward to scaling production and delivering 300–500 production vehicles to customers this year.
If a majority of these LOIs and MOUs come to fruition, Nikola would be sold out of its Tre BEVs for the rest of 2022. Still, its current footprint in Arizona can already produce five times that number of vehicles and is expanding to manufacture even more.
As of Q1 2022, Phase 1 of Nikola’s Arizona manufacturing facility is now complete, following shareholder approval to add common shares, and is equipped to produce 2,500 trucks per year. The automaker has already begun the second phase, which will consist of an assembly area expansion. The second phase is expected to be completed next year and will bolster the company’s truck output to 20,000 units per year on two work shifts.
Nikola’s financial highlights for Q1 2022
When it comes to finances, Nikola still has a long way to go, but it’s making progress. Gross profits were $431 for Q1. Hey, it’s a start.
What is there to be said about Nikola that hasn’t been already? Baby steps as they say. Mark Russell should be recognized for pulling this sham of a company out of the gutter and steering it in the right direction. A direction in which you deliver vehicles that actually drive without assistance from gravity.
Nikola still has a long way to go of course, but each update has shown progress, no matter how large or small, all without scandal. Now that production has begun in Arizona, it will be interesting to see how those delivery numbers grow in Q2 and 2022 as a whole. I’ll certainly be paying attention.
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