Nikola Corporation (NKLA)

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Shell stuffing: How Nikola became VectoIQ’s public preference
Friday, April 10, 2020

Gutsy play

Nikola’s business model — producing zero-emission Class 8 trucks and providing all-inclusive service and maintenance as well as access to a network of hydrogen fueling stations for a specific number of miles — rides on partners with specific expertise.

For example, Robert Bosch has more than 50 engineers co-located with the Nikola team near Phoenix, where Nikola is building a manufacturing plant. Norway’s Nel ASA leads development of the fueling network. Ryder System (NYSE: R) is Nikola’s maintenance partner.

“It’s ambitious and it takes a lot of guts to try and put something like that together,” Girsky said. “We think [founder Trevor Milton] is far enough along and we think we bring something to the party.“

It is very different from what Girsky experienced when he was creating economic models on Wall Street or later running a variety of GM business units.

“When we sold a car, we’d get $35,000 or $40,000. That car will generate another $200,000 in revenue over its life cycle in parts and service, insurance, financing, what have you. That downstream revenue was more profitable and less cyclical than our revenue yet we didn’t capture hardly any of it.”

By offering one upfront price for everything, Nikola will get a financial taste at each link of the value chain.
https://www.freightwaves.com/news/shell-stuffing-how-nikola-became-vectoiqs-public-preference

SmileyRiley_595 Friday, 06/05/20 07:49:06 PM
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Post # of 134

Steve Girsky examined more than 100 companies and signed 75 nondisclosure agreements and six letters of intent before choosing electric and fuel cell truck maker Nikola Motors as the filling for his publicly traded shell company.

This is a dated article but I believe it’s important to be reminded about who was behind the deal and what went into his decision...

https://www.freightwaves.com/news/shell-stuffing-how-nikola-became-vectoiqs-public-preference

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