[Overseas Stocks Spotlight] "Nikola to Start Full-Scale Revenue from Electric Vehicle Sales Next Year"

[Asia Economy Reporter Eunmo Koo] Hydrogen truck manufacturer Nikola (NIKOLA·NKLA.US), which was listed on the Nasdaq market last month, is expected to see sales fully materialize through electric vehicle (BEV) sales starting next year.

Nikola, established in 2015 as an eco-friendly truck manufacturer, is headquartered in Phoenix, Arizona, USA. It was listed on the Nasdaq market last month, and its major shareholders include founder Trevor Milton (25%), CEO Mark Russell (11%), and CHN Industrial’s Italian commercial vehicle brand Iveco (7%).

The main business involves sales of BEV and hydrogen fuel cell electric vehicle (FCEV) trucks and operation of hydrogen refueling stations. The company pursues a dual strategy: BEV trucks for short-distance transport and FCEV trucks for long-distance transport. The BEV trucks, with a driving range of about 300 miles (482 km), are scheduled for release in 2021 in cooperation with Iveco, while the FCEV trucks, with a driving range of 500?750 miles (804?1126 km), are planned for release in 2023 along with the operation of hydrogen refueling stations.

Looking at the main models, starting with the first prototype vehicle Nikola One in 2016, the current commercial trucks include three models: One, Two, and Tre, and the pickup truck ‘Badger’ has been unveiled. For the Badger, the BEV-only model is expected to have a 300-mile range, while the FCEV-BEV hybrid model is expected to achieve a 600-mile range. Production plans involve strategic partnerships with existing original equipment manufacturers (OEMs).

According to Hana Financial Investment on the 4th, Nikola has reportedly received pre-orders exceeding 14,000 units and $10 billion. In the early sales phase, the focus will be on fleet sales. Researcher Seonjae Song of Hana Financial Investment explained in a report that “Currently, about 1.8 million large semi-trucks operate in North America, and 25% of them, about 450,000 units, belong to corporate markets such as Amazon, Walmart, and PepsiCo that run fixed routes. Nikola plans to focus on these companies first and install hydrogen refueling stations on the targeted routes.”

Nikola plans to collaborate with partners over the next 8 to 10 years to build 700 hydrogen refueling stations in North America and 70 in Europe. Each station will be capable of producing and storing 8,000 kg of hydrogen daily and charging 210 FCEV trucks, with a future goal to increase daily maximum production and storage capacity to 40,000 kg. Hydrogen will be produced on-site via electrolysis or supplied from external production sites (off-site), with both methods used concurrently.

Nikola expects sales revenue to begin in earnest from BEV sales starting in 2021, projecting $150 million in revenue from selling 600 BEVs in 2021. By 2024, Nikola aims to achieve $3.2 billion in revenue through sales of 7,000 BEVs, 5,000 FCEVs, and completion of 24 hydrogen refueling stations, targeting a turnaround to profitability based on earnings before interest and taxes (EBIT). Last year, Nikola’s annual revenue was only $482,000, with an operating loss of $88 million and a net loss of $100 million, reflecting ongoing operating losses due to investments.