• Nikola Motor Company (Nikola), a developer of heavy-duty battery-electric vehicles (BEV) and fuel cell electric vehicle (FCEV) trucks, has received a USD 200 million investment from Antara Capital LP through a sale of convertible senior notes.

• The notes due in 2026 will bear an interest rate of 8% if paid in cash or 11% if paid in Nikola stock, at the company’s election.

• Nikola intends to use the funds to scale truck production and tooling setup, accelerate the development of hydrogen infrastructure, and for general corporate expenses.

<ul><li> Analyst QuickTake: Today’s news comes on the heels of Nikola beginning series production of its BEV “Nikola Tre” truck at its facility in Coolidge, Arizona, with deliveries commencing this quarter. The company is also on track to developing the FCEV version of Nikola Tre, which is expected to go into production at its facility in Ulm, Germany by mid-2023. However, fueling infrastructure worldwide is still in its nascent stage when it comes to supporting hydrogen truck fleets, and, so, we see FCEV manufacturers such as Nikola and Hyzon Motors themselves investing in these facilities to fuel the demand for vehicles, further validated by Nikola’s plans announced today.</ul>