Nikola Corporation, a pioneering global entity in emissions-free transport and energy provisions, operating under the HYLA brand, has put forth its financial outcomes and business updates for the quarter concluding on March 31, 2024.
Steve Girsky, the Chief Executive Officer of Nikola, emphasized the company’s rapid progress, stating, “Our focus lies on implementation rather than conceptualization or planning. We are actively engaged in advancing our strategies. In the previous quarter, I shared our milestone of initiating deliveries of hydrogen fuel cell electric trucks. Presently, we are actively executing strategies, competing in the market, and fostering growth opportunities as we expand into new markets.”
Hydrogen Fuel Cell Electric Truck
By the conclusion of Q1, we went beyond the upper limit of projected deliveries by dispersing 40 FCEVs, all designated for end fleets. This culminated in 75 wholesaled FCEVs during the initial two quarters of mass production. Encouragingly, we are encountering favorable responses from both existing and new fleets, including entry into novel markets like N.Y. While our primary focus has been California and Canada, we are well-positioned to cater to end fleet requirements across various regions in the United States.
To date, Nikola FCEVs have collectively covered over 830,000 miles, showcasing a superior average fuel efficiency surpassing our target of 7.2 mi/kg. Our persistent efforts aim to deliver exceptional experiences to both potential and current customers.
Energy
Our HYLA team is diligently executing the Hydrogen Highway Plan as planned. Initially, we committed to establishing nine additional HYLA refueling stations in California by the end of 2024. However, we are now on track to provide nine hydrogen fueling solutions by mid-2024 and further expand this to 14 by year-end. These solutions include modular fuelers and collaborative stations in California, Canada, and our primary station located at the Coolidge, Arizona manufacturing facility. It’s vital to highlight that fostering a hydrogen ecosystem necessitates collaborative efforts across the industry for the collective benefit. We welcome partners in various forms and stages of infrastructure development with a shared objective of establishing an inclusive ecosystem accessible to all.
Positive Environmental Policies
Sustaining our leading market share of HVIP vouchers for Class 8 FCEVs, we concluded the quarter with a remarkable 99% redemption rate, encompassing 362 out of 367 vouchers requested in the interim from 2023 through March 2024. Additionally, on the Class 8 BEV front, we maintained a 30% market share with 85 unredeemed vouchers at the close of Q1. While HVIP represents one facet, we are buoyed by the advancements in favorable environmentally conscious policies. Notably, two significant programs facilitate our operations. CARB’s Heavy-Duty Omnibus Regulation enables us to monetize earned NOx and particulate matter credits from zero-emission truck sales on a yearly basis. Nikola has sealed its inaugural credit sale agreement for credits generated from the Model Year 22, with revenues from this deal set to be recorded in Q2 2024. The future revenue derived from CARB credit sales is anticipated to grow progressively and hold substantial value.
Battery-Electric Truck
Finally, we concluded the first dispatch of a rectified BEV in Q1. Our primary focus remains on restoring BEVs to customers and dealers, with the goal of completing all units’ remediation by the conclusion of 2024. Sales of Nikola’s on-hand inventory are subject to future battery supply availability, with plans to opportunistically retail on-hand units for revenue in 2025.
Furthermore, we have bolstered the BEV 2.0 to align with the FCEV, sharing significant software and operational commonalities. This integration enables customers to seamlessly receive next-generation upgrades over-the-air as they are rolled out. Prioritizing the satisfaction of our fleet users, we have introduced over-the-air enhancements encompassing dynamic data collection for predictive diagnostics, enhanced truck functionality, and enhanced Advanced Driver Assistance Systems (ADAS) features to effectively manage powertrain demands in demanding route conditions like mountainous terrains.
Key financial insights of the first quarter
SOURCE: Nikola