Nikola Corporation reports Q3 2023 results and business updates
Nikola Corporation’s Q3 2023 results reveal a positive outlook as the company capitalises on strong demand for its zero-emission trucks, despite facing recall challenges. The focus on hydrogen fuel cell electric and battery-electric trucks aligns with evolving regulations and incentives, particularly in California, where significant opportunities for market share are emerging.
Nikola has presented an upbeat message as part of its Q3 earnings update: The company successfully raised $250 million, increasing its unrestricted cash by $136.2 million; has secured 277 non-binding orders from 35 customers for its Hydrogen fuel cell electric truck, and has also started hydrogen Fuel Cell Electric Truck demonstrations in Southern California, utilising mobile fueling solutions and third-party fueling infrastructure, which have now accumulated over 6,000 miles with a reported 98% uptime.
On the downside Nikola initiatied a voluntary recall for the battery-electric truck in August, due to issues with the battery packs. The estimated cost of this recall and repair is approximately $61.8 million, which has been accrued as a warranty liability in Q3 2023, the company explained.
Nikola believes it is well-positioned to benefit from strong industry tailwinds promoting the adoption of zero-emission vehicles, particularly in California, where new regulations require all new trucks registered for operation in California ports to be zero-emission starting from January 1, 2024. Additionally, incentives like HVIP and ISEF offer substantial financial benefits for hydrogen fuel cell electric trucks in California, further encouraging their adoption.
“We think the competition is well behind us and believe there is white space for us to capture market share with the introduction of the Advanced Clean Fleets Rule, and incentives like HVIP and ISEF offering up to $288,000 and $408,000, respectively, per hydrogen fuel cell electric truck in California,” said Nikola CEO, Steve Girsky.