Nikola Corporation Reports First Quarter 2021 Results
PHOENIX, AZ – May 7, 2021 — Nikola Corporation (Nasdaq: NKLA), a global leader in zero-emissions transportation solutions, today reported financial results for the quarter ended March 31, 2021.
“During the first quarter Nikola continued to deliver on our previously communicated milestones and execute on our business plan,” said Mark Russell, Nikola’s Chief Executive Officer. “We have had continued success in commissioning and validating the Nikola Tre BEVs, and are nearing completion of both our Ulm, Germany and Coolidge, Arizona manufacturing facilities.”
Progress on the Commissioning and Validation of the First Batch of Nikola Tre BEVs
Commissioning and validation activities continue on the Nikola Tre battery-electric vehicle (BEV). As expected in a new program development cycle, we have had to overcome some component level delays which we have worked through with our suppliers to minimize the impact on the scheduled timeline. Q1 activities included commissioning the first batch of five Tre BEVs and validation testing at the proving grounds. As of today, powertrain performance and durability testing have started at the proving grounds.
We are nearing completion of the second batch of nine beta Nikola Tre BEVs in Ulm, Germany. As of today, we have completed eight of the nine trucks, with the ninth scheduled to be completed by May 10. Three trucks from the second batch of nine are at Nikola’s headquarters (HQ) in Arizona, one is in Indiana for crash testing, and four are in transit to the HQ in Arizona. We anticipate that the four trucks in transit, in addition to the ninth truck being completed, will arrive at our HQ by the end of May.
Progress Made at our Joint Venture Manufacturing Facility on IVECO’s Industrial Complex in Ulm, Germany
As of May 7, Nikola and IVECO have nearly completed the building modifications of the joint venture manufacturing facility. The dismantling and building restructuring have been completed. The automatic guided vehicle (AGV) system installation is ongoing and is expected to be completed over the next few weeks. The tool and equipment installation of the 14 separate workstations should be completed by the end of the month. Nikola is on track to begin the start of trial production in June 2021.
Progress Made at Nikola’s Coolidge, Arizona Manufacturing Facility
During the first quarter of 2021, Nikola continued to make progress at the greenfield manufacturing facility in Coolidge, Arizona. The building has been substantially enclosed with the floor slab, roofing, and walls complete. The electrical and mechanical construction and installation is nearing completion and the manufacturing equipment is beginning to be installed. The road paving is ongoing and utilities have been installed. As we begin vehicle trial builds at the facility in July, Nikola will concurrently be building out the Phase 1 assembly expansion area at Coolidge.
Nikola’s technicians are in Ulm building second batch Nikola Tre BEV betas and Nikola Tre fuel-cell electric vehicle (FCEV) alphas, and by the end of Q2 2021 will come to Arizona to build trucks at the Coolidge facility. Nikola has also begun the assembly of the first Tre FCEV alpha in Coolidge.
On April 8, 2021, Nikola and RIG360 Service Network (RIG360) announced an expansive sales and service dealer network spanning more than 65 service center locations. RIG360 service centers are located in key metropolitan areas and at major intersections of the interstate highway system throughout the southeast, northeast, and midwestern regions. The agreement, once finalized, is expected to provide a service and maintenance network and a reputable sales channel for Nikola’s customers.
On April 14, 2021, Nikola, IVECO, and OGE announced their intent to accelerate the deployment of hydrogen infrastructure and fueling solutions throughout Germany. Nikola will lead the installation of hydrogen fueling locations for all OEM FCEVs at key locations supported by OGE’s hydrogen pipeline network. The collaboration, once finalized, between Nikola, IVECO, and OGE is expected to enable cost-effective distribution of hydrogen from production to storage and fueling locations in Germany.
On April 22, 2021, Nikola and TravelCenters of America agreed to collaborate on the installation of hydrogen fueling stations for heavy-duty trucks at two existing TA-Petro sites. The first two stations will be constructed at existing TA-Petro locations in California. They are targeted to be commercially operational by Q1 2023. The agreement with TravelCenters of America, once finalized, sets the foundation for the buildout of hydrogen refueling infrastructure across the country.
On May 6, 2021, Nikola announced a collaboration with Total Transportation Services, one of Southern California’s prominent port trucking companies, to expedite zero-emission transportation at the Port of Los Angeles/Long Beach. The collaboration, once finalized, includes vehicle trials and a letter of intent to order 100 Nikola Class 8 BEV and FCEV semi-trucks.
First Quarter Financial Highlights
Nikola looks forward to achieving the following milestones in 2021:
Start of vehicle trial production at the JV manufacturing facility at IVECO’s industrial complex in Ulm, Germany in June 2021;
Start of vehicle trial production at the greenfield manufacturing facility in Coolidge, Arizona in July 2021;
Break ground on our first commercial hydrogen station;
Announce additional hydrogen infrastructure/ecosystem partners;
Announce additional fleet testing customers; and
Deliver the first Nikola Tre BEVs to customers during the fourth quarter of 2021.
Webcast and Conference Call Information
Nikola will host a webcast to discuss its first quarter results at 6:30 a.m. Pacific Time (9:30 a.m. Eastern Time) on May 7, 2021. To access the webcast, parties in the United States should follow this link: https://www.webcast-eqs.com/register/nikola20210504/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 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 or Twitter @nikolamotor.
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 performance; expected timing of manufacturing facility buildout in Coolidge, AZ and Ulm, Germany and production capacity at such facilities; expectations regarding the Company’s hydrogen fuel station rollout plan; timing of completion of prototypes, validation testing, volume production, buildouts as well as other 2021 milestones; terms and potential benefits of the planned collaborations with Rig360, IVECO, OGE, TravelCenters of America, and Total Transportation Services; and the Company’s beliefs with respect to component level challenges and any potential impact on the Company’s business. 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 that are 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 the ability of the parties to enter into definitive documentation for the collaborations and the terms of any such agreements; the failure to realize the anticipated benefits of planned collaborations or any definitive agreements related thereto; design and manufacturing changes and delays; general economic, financial, legal, regulatory, political and business conditions and changes in domestic and foreign markets; the potential effects of COVID-19; the outcome of legal, regulatory and judicial proceedings to which the Company is, or may become a party; demand for and customer acceptance of the Company’s trucks; risks associated with development and testing of fuel-cell power modules and hydrogen storage systems; risks related to the rollout of the Company’s business and the timing of expected business milestones; the effects of competition on the Company’s future business; the availability of capital; and the factors, risks and uncertainties regarding the Company’s business described in the “Risk Factors” section of the Company’s annual report on Form 10-K for the year ended December 31, 2020 filed with the Securities and Exchange Commission (the “SEC”), as amended, 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, non-GAAP net loss 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 the Company believes are not indicative of its core operating performance. Non-GAAP net loss is defined as net loss adjusted for stock-based compensation expense and certain other items the Company believes are not indicative of its core operating performance. 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.