Nikola Motor Company

Nikola Motor Company (Nikola), which has been listed on the NASDAQ since June 2020, develops heavy-duty battery-electric and hydrogen-electric trucks. Its “Nikola Tre” semi-truck and “Nikola Badger” pickup truck are available in both hydrogen fuel cell electric vehicle (FCEV) and battery electric vehicle (BEV) versions. Its other semi-truck, “Nikola Two,” is configured as an FCEV only. Bosch and PowerCell AB provide the fuel cells for Nikola’s trucks. 

The Nikola Tre FCEV model, aimed at medium- and long-haul trucking (300–500 miles per day), began alpha testing in February 2022. The company began series production in July 2023 , with the official commercial launch in September 2023. In February 2024, Nikola announced that it would be the first commercial vehicle company in North America to integrate what3words, a precise location technology, into its Class 8 trucks in 2024.

In January 2023 , Nikola announced the launch of mobile hydrogen fueling stations to refuel FCEVs. In February 2024 , the company launched its first HYLA hydrogen fueling station in Southern California for Class 8 trucks, with HYLA stations capable of fueling up to 40 hydrogen fuel cell electric Class 8 trucks per day. Nikola plans to build a network of up to 60 stations by 2026, consisting of HYLA stations, customer-owned stations, and partner stations (such as FirstElement Fuel’s station in Oakland). 

The company is headquartered in Phoenix, Arizona and has a manufacturing facility in Coolidge, Arizona . In May 2023, the Iveco Group took full ownership of the joint venture in Ulm, Germany (which started in 2019), and will continue to develop vehicle control software for the jointly developed BEV and FCEV. Nikola will receive the IVECO S-Way technology license for North America and gain joint ownership of the jointly developed Generation 1 eAxles technology.

Nikola acquired battery supplier Romeo Power in August 2022 to accelerate its battery pack production but began liquidating its assets in July 2023 due to rising battery production costs. A month later, the company recalled 209 Tre BEVs because battery packs supplied by Romeo Power were causing underhood fires. Also in July 2023, Fortescue Future Industries (FFI) agreed to acquire Nikola’s green hydrogen project, the Phoenix Hydrogen Hub (PHH), in order to fully develop it following their initial agreement in January 2023. The parties are working toward a hydrogen supply agreement to support Nikola’s Class 8 trucks.

Key customers and partnerships

Nikola has received orders from several companies for FCEV trucks, including such as 1) letter of intent with Total Transportation for 70 units, 2) PGT Trucking for 100 units, 3) Covenant Logistics Group for 40 units, 3) Plug Power for 75 units, 4) AJR Trucking for 50 units, 5) J.B. Hunt for 3 units, and 6) IMC Logistics for 50 units.

The company has several dealer locations in the Southeast, Midwest, and Northeast regions of the US, with RIG360 and Quinn Company being notable dealers. In September 2023, Nikola expanded its dealer network to Canada in partnership with ITD Industries. 

In January 2022, Nikola signed an agreement with Corcentric Fleet Funding Solutions, a leasing and financial solutions provider, to finance the sale of Nikola Tre Class 8 BEVs and Nikola Tre FCEVs. 

Nikola has also entered into several partnerships to develop hydrogen infrastructure to support the supply of hydrogen fuel for its trucks. In September 2021, the company signed an MoU with OPAL Fuels, a provider of renewable natural gas (RNG), to jointly develop and commercialize hydrogen fueling infrastructure, and in October 2021, it partnered with TC Energy Corporation, a Canadian energy infrastructure company, to build and operate large-scale hydrogen hubs in North America. In September 2022, Nikola entered into a joint venture with E.ON, a Germany-based energy network and infrastructure operator, to strengthen its hydrogen refueling ecosystem across Europe. In November 2022, Nikola collaborated with KeyState , a green hydrogen producer, to purchase 100 metric tons of hydrogen per day, to fuel 2,500 Nikola Tre FCEVs. In March 2023, the company partnered with Klean Industries, to convert Klean’s logistics partners’ truck fleet to Nikola Class 8 vehicles, while Nikola evaluates off-take opportunities from green hydrogen projects being developed by Klean and its partners. In May 2023, Nikola partnered with Voltera , an EV charging infrastructure provider, to deploy 50 hydrogen fueling stations across North America over the next five years. In July 2023, Nikola partnered with BayoTech to strengthen its hydrogen refueling and EV charging ecosystem. 

In July 2023, the company partnered with Bosch to obtain fuel-cell power modules for its Nikola Tre Class 8 FCEV trucks.

Funding and financials

In June 2020, Nikola was listed on the NASDAQ through a special purpose acquisition company (SPAC) deal, valuing the company at USD 3.3 billion. The company reported revenues of USD 35.8 million and a net loss of USD 966.3 million in 2023. 

In May 2022 , Nikola received a USD 200 million investment from Antara Capital LP through the sale of convertible senior notes to scale truck production and tooling setup, accelerate the hydrogen infrastructure development, and for general corporate expenses. In March 2023 , Nikola announced that it plans to raise USD 100 million through a secondary stock offering to the public, to be used for working capital needs and other general corporate purposes. Subsequently, in July 2023 , the company received a USD 41.9 million grant from the California Transportation Commission (CTC) to build six open-access, heavy-duty hydrogen fueling stations in Southern California. In August 2023 , Nikola received an additional USD 16.3 million in regulatory funding to build its hydrogen fueling stations. In October 2023 , the company also won USD 165 million in an arbitration case against its former executive chairman, Trevor Milton. In December 2023, the company sought to raise funds by selling 133.3 million new shares and issuing USD 175 million in new debt to fund its August truck recall, expand its hydrogen fuel cell electric truck business, and commercialize its FCEVs.