Published February 25, 2021
PHOENIX, AZ -- February 25, 2021 -- Nikola Corporation (Nasdaq: NKLA), a global leader in zero-emissions transportation solutions, today reported financial results for the quarter and full year ended December 31, 2020.
"In the fourth quarter of 2020, Nikola made the necessary changes to refocus and realign the company. You have seen us restructure our agreement with GM, cancel our battery electric (BEV) refuse truck program, discontinue our Powersports program and realign the company’s resources with laser focus on our core businesses: battery electric and hydrogen fuel-cell electric (FCEV) heavy-duty trucks, and hydrogen refueling infrastructure,” said Mark Russell, Nikola's Chief Executive Officer.
Progress on the Commissioning and Validation of the first Nikola Tre BEVs
Nikola has completed the assembly of the first five Nikola Tre BEV Prototypes. All trucks are in the commissioning process and are ramping up to full speed, torque, and payload hauling capacity as part of our level two software release and vehicle validation process. Four trucks are in North America at multiple locations undergoing powertrain, durability and extreme weather testing. One truck remains in Europe for ABS braking, traction control, and electronic stability control testing. Nikola and IVECO have also begun the assembly of the second batch of prototype trucks at the Ulm, Germany facility.
Announcement of Long-Term Electricity Rate Schedule with APS
In December 2020, Arizona Public Services Company (APS) and Nikola negotiated a competitive rate that was unanimously approved by the Arizona Corporation Commission on January 12, 2021. This innovative electricity rate schedule with APS is an important step in achieving our goal of producing hydrogen at price parity with diesel fuel. Nikola estimates that under the rate structure, we will be able to deliver hydrogen at market leading prices and within the range required for Nikola to offer a competitive total cost of ownership for its customers.
Progress Made at our Joint Venture Manufacturing Facility on IVECO's Industrial Complex in Ulm, Germany
During the fourth quarter, Nikola and IVECO made significant progress at the joint venture manufacturing facility on IVECO’s campus in Ulm, Germany. The building dismantling and refurbishment, including the civil works (floor, heating, system, and walls), have been completed. The crane and subgroup infrastructure has also been installed and is on track for completion by the end of February 2021. The assembly of the customized automatic guided vehicle systems has begun and is on pace for onsite installation beginning in March 2021.
The logistics warehouse, internal logistics, end of line, finishing, enterprise resource planning system implementation, and the ordering and installation of tools and equipment are all on pace for completion by the end of May 2021, with trial production of Nikola Tre BEVs scheduled to begin in June 2021.
Progress made at Nikola's Coolidge, Arizona Manufacturing Facility
During the fourth quarter of 2020, Nikola went vertical at our greenfield manufacturing facility in Coolidge, AZ. The steel erection process began December 29, 2020 and as of today is almost complete. The roof installation is currently ongoing with siding and concrete slab to follow. Our manufacturing equipment is on its way and installation is set to begin in May 2021. We are currently in the process of hiring manufacturing employees in the Pinal County area and have started training our manufacturing technicians.
All work is proceeding as planned. We expect to begin trial production of Nikola Tre BEVs at the Coolidge facility in the third quarter 2021.
Company Realigns Focus on Core Product Offering
General Motors MOU Agreement
On November 29, 2020, we entered into a non-binding memorandum of understanding (MOU), with General Motors (GM) for a global supply agreement related to the integration of GM’s Hydrotec fuel-cell system into our commercial semi-trucks. Under the terms of the MOU, Nikola will have the ability to work with GM to integrate GM’s Hydrotec fuel-cell technology into our Class 7 and Class 8 zero-emission semi-trucks for the medium and long-haul trucking sectors. The MOU with GM allows Nikola to dual source fuel-cell systems for our heavy-duty class 8 FCEVs.
Nikola and Republic Services End Collaboration on Refuse Truck
On December 23, 2020, we announced that Nikola and Republic Services discontinued their collaboration on the development of a new refuse truck. After considerable collaboration and review, both companies determined that the program would take longer than previously anticipated, in addition to requiring higher than previously planned upfront development costs.
The cancellation of the refuse program was one of the last steps in a series of decisions made during the fourth quarter to restructure the organization and realign resources. We believe Nikola is now well-positioned to execute on its business plan.
On December 23, 2020, Nikola announced that it appointed Mary L. Petrovich as a new independent director. Nikola also previously announced the addition of Bruce L. Smith to the board as a new independent director on October 29, 2020. To view Bruce or Mary’s bio, please click here.
Effects of COVID-19
The health and safety of Nikola's employees and communities are the Company's top priority. Nikola's management team has taken steps to ensure its team can safely continue working to advance the Company's strategy and vision to become a global leader in zero-emissions transportation. The COVID-19 pandemic has created a disruption in the manufacturing, delivery and overall supply chain of OEMs and their suppliers; which has led to critical parts shortages, including battery cells and semiconductors, and work restrictions.
Fourth Quarter and Full Year Financial Highlights
Now that we have put the strategic restructuring of the business behind us, we look forward to achieving the following milestones in 2021:
Start of trial production at our joint venture manufacturing facility on IVECO's Campus in Ulm, Germany in June 2021;
Start of trial production at our greenfield manufacturing facility in Coolidge, Arizona in the third quarter of 2021;
Break ground on our first commercial hydrogen station(s) infrastructure;
Announce hydrogen collaboration partners and electricity procurement arrangements; and
Delivery of 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 fourth quarter and fiscal year results at 2:30 p.m. Mountain Time (4:30 p.m. Eastern Time) on February 25, 2021. To access the webcast, parties in the United States should follow this link: https://www.webcast-eqs.com/register/nikola20210225/en.
The live audio webcast, along with supplemental information, will be accessible on the company's investor relations website at https://www.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.
Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to statements relating to the Company's future performance, milestones and ability to execute on its business plan; expected timing of manufacturing facility buildout in Coolidge, Arizona and Ulm, Germany and production capacity at such facilities; expectations regarding the Company's hydrogen fuel station rollout plan and its ability to deliver hydrogen at prices which will meet its business requirements; expected timing of completion of prototypes, validation testing, production and other milestones; the Company’s beliefs regarding the refocus and realignment of its business; the potential benefits of the MOU with General Motors; and the effect of COVID-19 on the Company's business. 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 that predict or indicate future events or trends or that are not historical fact. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially and reported results should not be considered as an indication of future performance. These risks and uncertainties include, but are not limited to: general economic, financial, legal, political and business conditions and changes in domestic and foreign markets; the potential effects of COVID-19; the outcome of legal, judicial and administrative proceedings to which the Company is, or may become a party; risks related to the Company’s business and the timing of expected business milestones; design, construction or manufacturing delays; changes in the assumptions underlying the Company’s expectations regarding its future business or its business model; the availability of capital; the effects of competition on the Company’s business; and the other risks set forth under the heading “Risk Factors” in the Company’s filings with the SEC, including its Quarterly Report on Form 10-Q for the quarter ended September 30, 2020 and in other documents filed or to be filed with the SEC, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 to be filed with the SEC. If these or other risks materialize, or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. Forward-looking statements speak only as of the date hereof, and the Company disclaims any obligation to update these forward-looking statements.
Use of Non-GAAP Financial Measures
To supplement our financial statements prepared in accordance generally accepted accounting principles in the United States (GAAP), we are providing certain non-GAAP measures, including Adjusted EBITDA, Non-GAAP net loss, and Non-GAAP net loss per share basic and diluted. The Company defines Adjusted EBITDA as net loss before interest income or expense, income tax expense or benefit, depreciation and amortization, stock-based compensation expense, and other items determined by the Company. Non-GAAP net loss is defined as net loss attributable to common stockholders, basic and diluted adjusted for stock-based compensation expense and 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 a substitute for or superior to measures of financial performance prepared in accordance with 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 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. Because of these limitations, these non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the non-GAAP reconciliations to GAAP provided elsewhere in this press release.
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