Nikola Corporation (NKLA)

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"From Mark Russell's standpoint, it probably would be wise to drop the Badger and focus on the trucks."



Nikola Motors, a Tesla competitor with zero revenue, is worth $23 billion. That doesn't faze its founder.
Graham Rapier Jun 16, 2020, 3:50 PM

Nikola's most recent surge was fueled by the announcement that it will begin taking reservations on June 29 for its Badger truck, a full-size F-150 and Tesla Cybertruck.

But it's the semi truck — another segment Elon Musk has lofty plans for — where Nikola plans to really make money. However, there's one major powertrain difference: hydrogen.

"Nicola's main revenue stream is the semi-trucks," Milton said. "We can make about $750,000 or more in revenue per truck we sell, which is almost five times what our competitors make per truck. That's because we actually include all the fuel with it that we own, and we manufacture the hydrogen fuel. That's the way we make all the money."

Hydrogen fuel cells have been an industry choice for heavy trucks, especially on off-highway uses where batteries can be quickly depleted. CNH Industrial, a maker of heavy-duty trucks and farm equipment with a similar stance on hydrogen versus pure batteries, previously invested $100 million in Nikola before exiting the stake during the reverse-public offering in March.

That's where Milton thinks Nikola can get an edge on Tesla's charging network.

"It does take more energy to produce hydrogen than it does to charge a battery electric truck," Milton said, "but the advantage you get with hydrogen is building all your hydrogen stations on the interstate freeways, where you're able to source your energy directly and pay under 4 cents a kilowatt hour for energy."

In California, for example, Nikola charging could be as low as 30 cents per kilowatt hour, roughly in line with Tesla, and can help trucks work multiple shifts in a day with recharging. Orders are already backlogged to the tune of $10 billion with customers including Anheuser-Busch.
https://finance.yahoo.com/news/26-billion-truck-company-zero-011659264.html




Nikola Stock Surge Turns CEO Mark Russell Into Hydrogen Truckmaker’s Second Billionaire
Jun 12, 2020,02:41pm EDT

Nikola has truck orders worth $10 billion from companies led by Anheuser-Busch, which wants 800 of its non-polluting behemoths. The company estimates sales will jump from $150 million in 2021 to $3.2 billion by 2024 as production ramps up. In 2024, Nikola expects to sell or lease 7,000 battery-powered units and 5,000 hydrogen fuel cell trucks, according to an SEC filing. The company may raise an additional $700 million between late 2021 and early 2022, according to the filing. It may also issue debt in 2023 and 2024 totaling $500 million. Building hydrogen stations for its trucks, which will make the clean fuel from water and renewable electricity, will run to nearly $1 billion from 2022 through 2024.
https://www.forbes.com/sites/alanohnsman/2020/06/12/nikola-stock-surge-turns-ceo-mark-russell-into-hydrogen-truckmakers-second-billionaire/#4bb13ba531d8



News Analysis: Evidence Mounts That Nikola Badger Is Roadkill

October 01, 2020 3:05pm

Batteries and fuel cells
The other part of the Nikola-GM deal — supplying batteries and fuel cells to Nikola's heavy-duty trucks — got less attention. But it might mean more to GM as it provides entry into the heavy-duty trucking space where the company does not compete.

"I think the fuel cell stuff is probably the bigger incremental value to GM," Sam Abuelsamid, principal analyst at Guidehouse Insights, told FreightWaves. "This is their first real customer for them. So I think that's clearly got to be the priority."

GM would be happy to soak up assembly capacity with the Badger and capture the ZEV credits, he said. One downside for GM is that Nikola has the "cool kid" image that an old line manufacturer like GM lacks.

"Even though it's the exact same hardware, people that want to buy an electric truck might be more interested in buying from a Nikola than a GM," Abuelsamid said. "From Mark Russell's standpoint, it probably would be wise to drop the Badger and focus on the trucks."
https://finance.yahoo.com/news/news-analysis-evidence-mounts-nikola-190516889.html