Nikola Corp (fka NKLAQ)

[WeTheMarket]

Nikola's Arizona factory has the capacity to build 10,000 Class 8 trucks a year combined BEVs and hydrogen FCEVs, the mix determined by demand, currently projected to be dominated by the hydrogen FCEVs due to the significant longer range and faster refueling time.

To simplify the math, assuming it costs Nikola $200,000 to build a truck, at full production capacity Nikola will need $2 billion dollars to build 10,000 trucks. Granted it will take years for Nikola to ramp production to full scale, nevertheless, this simple math exercise shows the enormous amount of money Nikola will need to achieve full scale production.

On the other hand, assuming Nikola makes $50,000 profit per truck, that's half a billion dollars in profits just from the sale of the trucks alone. Thus the potential profits are also very large. Once Nikola becomes cash flow positive, the profits will be enormous.