Nikola Corporation Reports Fourth Quarter and Full Year 2023 Results

• Delivered the first production hydrogen fuel cell electric truck available in North America
  • Delivered 35 hydrogen fuel cell electric trucks in Q4 ending the period with no finished goods inventory
  • From October 2023 through January 31, 2024, 225 additional voucher requests have been submitted in Calif. for hydrogen fuel cell electric trucks, all for Nikola
• Remain on track to get the first battery-electric trucks back into end user hands by the end of Q1
• Opened first HYLA modular refueling station in Ontario, Calif. and announced partnership with FirstElement Fuel in Oakland, Calif. providing fleets with fueling solutions in Northern and Southern Calif.
• During Q4 raised $230.3M, ending the year with $464.7M of unrestricted cash, highest unrestricted cash balance since Q4 2021
• Added two additional reputable and seasoned board members with deep experience in trucking and energy
  • Jonathan Pertchik, former CEO of TravelCenters of America
  • Carla Tully, whose experience includes leading and scaling energy organizations across Fortune 150, private equity, and startups (appointed in February 2024)

PHOENIX – February 22, 2024 — Nikola Corporation (Nasdaq: NKLA), a global leader in zero-emissions transportation and energy supply and infrastructure solutions, via the HYLA brand, today reported financial results and business updates for the fourth quarter and full year ended December 31, 2023.

“Today we’re sharing what we’ve accomplished and how we are providing fully integrated zero-emissions mobility solutions to fleets right now,” said Nikola President and CEO Steve Girsky. “We began delivering production hydrogen fuel cell electric trucks in Q4, fleets are fueling daily at our modular refueling station in Ontario, California, we continue to rack up HVIP vouchers, and we are on track to start getting our battery-electric trucks back to end users by the end of the first quarter.”

“In California, we have 99% of all the hydrogen fuel cell electric tractor HVIP vouchers requested in 2023 through January 2024,” Girsky continued. “There are more requests for our fuel cell truck alone than all other truck OEMs combined on both battery and hydrogen fuel cell electric trucks in the same period. It’s a testament to our market leading position, quality of our products, and the high level of Nikola fleet success. We are making the most of our head start and capitalizing on our first-mover advantage.”

Launch of the Hydrogen Fuel Cell Electric Truck and Hydrogen Refueling Ecosystem
In Q4 2023, we demonstrated our ability to produce, manufacture, and deliver the hydrogen fuel cell electric truck. We believe we have delivered the first production Class 8 hydrogen fuel cell truck available in North America. Fleets are operating the trucks daily, fueling at our first modular refueling site in Ontario, Calif. and our partner FirstElement Fuel’s station in Oakland, Calif.

Looking forward to 2024, we are focused on optimizing revenue and costs in our business, as we seek to scale hydrogen fuel cell electric truck production, secure additional modular refueling sites and deploy modular fuelers to support fleets and bring the battery-electric product back to the marketplace.

Hydrogen Fuel Cell Electric Truck
In Q4 2023, we delivered what we believe is the first production hydrogen fuel cell electric truck available in North America. We produced 42, delivering 35 of those to dealers and reserved seven for continued testing and fleet demos. Every truck delivered to dealers is spoken for by an end user, some of which are already utilizing the trucks in operations daily. End users include:

• Long standing partner Biagi Bros.
• IMC Logistics, the largest marine drayage company in the U.S.
• 4 Gen / Duncan and Sons Lines
• Alberta Motor Transport Association
• Coyote Container

In Calif. 99% (355 of 360) of the hydrogen fuel cell electric HVIP vouchers requested in 2023 through January 2024 are for our hydrogen fuel cell electric truck. We continue to build a strong sales funnel as our sales team works in conjunction with dealers. Initial fleet feedback on truck performance has been positive. Coyote Container completed an 866-mile round trip haul between The Port of Oakland, Port of Long Beach, HYLA Ontario refueling station, and returned to Oakland, stopping for only one refuel.

Battery-Electric Truck
We remain on track to deliver the first re-worked battery-electric trucks with new battery packs back to end users by the end of Q1 and believe all trucks will be returned to end user fleets by the end of Q2 or early Q3. Once end user trucks have been returned, we plan to begin retrofitting the remaining battery-electric trucks in Nikola inventory and selling them for revenue in late Q3 or early Q4.

Since October 2023, there have been 33 additional HVIP voucher requests for the battery-electric truck in Calif. In addition to new battery packs from an alternative supplier, what we call the BEV “2.0” is expected to have a number of additional enhancements, some available upon release and some to be implemented over time, which further improve the trucks capabilities. Some of the improvements include an updated instrument display, a more user-friendly mobile app, and scheduled departure charging to ensure maximum state of charge when a driver begins their route. In addition to the new packs and features, we also expect the trucks will be lighter, improving payload capacity.

Energy
We recently announced the opening of our first HYLA modular refueling station in Ontario, Calif., as well as our collaboration with FirstElement Fuel for fleets to use their refueling station in Oakland, Calif. Fleets are utilizing both fueling locations and hauling freight between Southern and Northern Calif.

Our HYLA team is working to secure additional fueling sites throughout Calif., and believes we have line of sight to secure an additional six in Southern Calif. and three in Northern Calif. in 2024. The HYLA station development strategy is to deploy modular fueling assets as truck network density is amassed in the region. Once truck density is amassed, fixed stations can be constructed and placed into service. Upon the completion of fixed station infrastructure, modular fuelers can be redeployed to a new geography and the cycle can be replicated. We believe the modular refueling strategy allows us to be nimble and rapidly enter new markets, while remaining capital efficient.

Fourth Quarter and Full Year Financial Highlights

Webcast and Conference Call Information
Nikola will host a webcast to discuss its fourth quarter and full year 2023 results and business progress at 7:30 a.m. Pacific Time (10:30 a.m. Eastern Time) on February 22, 2024. To access the webcast, parties in the United States should follow this link: https://www.webcast-eqs.com/nikola20240222/en.

The live audio webcast, along with supplemental information, will be accessible on the Company’s Investor Relations website at https://nikolamotor.com/investors/news?active=events. A recording of the webcast will also be available following the earnings call.

About Nikola Corporation
Nikola Corporation’s mission is clear: pioneering solutions for a zero-emissions world. As an integrated truck and energy company, Nikola is transforming commercial transportation, with our Class 8 vehicles, including battery-electric and hydrogen fuel cell electric trucks, and our energy brand, HYLA, driving the advancement of the complete hydrogen refueling ecosystem, covering supply, distribution and dispensing. Nikola headquarters is based in Phoenix, Arizona with a manufacturing facility in Coolidge, Arizona.

Nikola headquarters is based in Phoenix, Arizona with a manufacturing facility in Coolidge, Arizona.

For more information visit our website Facebook @nikolamotorcompany, Instagram @nikolamotorcompany, YouTube @nikolamotorcompany, LinkedIn @nikolamotorcompany or Twitter @nikolamotor.

Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of federal securities laws with respect to Nikola Corporation (the “Company”), including statements relating to: the Company’s future financial and business performance, business plan, strategy, focus, opportunities and milestones; expected orders and customer demand for trucks; the Company’s beliefs regarding competition and that it has competitive and first-mover advantage; the Company’s business outlook; the Company’s expectations regarding hydrogen supply and plans to secure adequate hydrogen supply; expected benefits of the modular refueling strategy; expectations related to the battery-electric truck recall, including the nature of the repairs, the Company’s expectations regarding the trucks, and timing of battery replacement and truck deliveries and sales; the Company’s sales efforts; and government incentives and expectations regarding customer demand related to such incentives. These forward-looking statements generally are identified by words such as “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” and similar expressions. Forward-looking statements are predictions, projections, and other statements about future events based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: successful execution of the Company’s business plan; design and manufacturing changes and delays, including global shortages in parts and materials and other supply challenges; general economic, financial, legal, regulatory, political and business conditions and changes in domestic and foreign markets; demand for and customer acceptance of the Company’s trucks and hydrogen refueling solutions; the results of customer pilot testing; the execution and terms of definitive agreements with strategic partners and customers; the failure to convert LOIs or MOUs into binding orders; the cancellation of orders; risks associated with development and testing of fuel cell power modules and hydrogen storage systems; risks related to the recall, including higher than expected costs, the discovery of additional problems, delays retrofitting the trucks and delivering such trucks to customers, supply chain and other issues that may create additional delays, order cancellations as a result of the recall, litigation, complaints and/or product liability claims, and reputational harm; risks related to the rollout of the Company’s business and milestones and the timing of expected business milestones; the effects of competition on the Company’s business; the Company’s ability to raise capital; the Company’s ability to achieve cost reductions and decrease its cash usage; the grant, receipt and continued availability of federal and state incentives; the completion of the 2023 audit and any related adjustments to financial results; and the factors, risks and uncertainties regarding the Company’s business described in the “Risk Factors” section of the Company’s quarterly report on Form 10-Q for the quarter ended September 30, 2023 filed with the SEC, in addition to the Company’s subsequent filings with the SEC. These filings identify and address other important risks and uncertainties that could cause the Company’s actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and, except as required by law, the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

Use of Non-GAAP Financial Measures
This press release references Adjusted EBITDA and non-GAAP net loss per share, basic and diluted, all of which are non-GAAP financial measures and are presented as supplemental measures of the Company’s performance. The Company defines Adjusted EBITDA as earnings before interest expense, taxes, depreciation and amortization, stock-based compensation expense, and certain other items determined by the Company. Non-GAAP net loss is defined as net loss adjusted for stock-based compensation expense and certain other items determined by the Company. Non-GAAP net loss per share, basic and diluted is defined as non-GAAP net loss divided by weighted average basic and diluted shares outstanding. These non-GAAP measures are not substitutes for or superior to measures of financial performance prepared in accordance with generally accepted accounting principles in the United States (GAAP) and should not be considered as an alternative to any other performance measures derived in accordance with GAAP.

The Company believes that presenting these non-GAAP measures provides useful supplemental information to investors about the Company in understanding and evaluating its operating results, enhancing the overall understanding of its past performance and future prospects, and allowing for greater transparency with respect to key financial metrics used by its management in financial and operational-decision making. However, there are a number of limitations related to the use of non-GAAP measures and their nearest GAAP equivalents. For example, other companies may calculate non-GAAP measures differently or may use other measures to calculate their financial performance, and therefore any non-GAAP measures the Company uses may not be directly comparable to similarly titled measures of other companies.

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