As the first company to sell hydrogen-powered semis in the U.S., Nikola delivered more fuel cell trucks to customers in the first quarter of the year than analysts had expected. The company, based in Phoenix, reported delivering 40 Tre FCEV trucks in the quarter and built 43 at its Arizona factory. This is a positive development for Nikola as it works to rebuild its reputation after its founder, Trevor Milton, stepped down in 2020 amid allegations of lying to investors about the company’s technology. Despite its troubled past, Nikola is currently outperforming Tesla in the heavy truck market.
Nikola’s business is looking stronger with the new CFO and the opening of its branded HYLA hydrogen fuel stations for trucks in California and Canada. Additionally, the company may benefit from the tough new emissions rules for heavy-duty trucks announced by the Environmental Protection Agency, which will require manufacturers to produce vehicles with increasingly carbon-neutral technologies. This is seen as a twofold benefit for Nikola, as it will accelerate demand for its trucks and indirectly benefit from the growth of charging and hydrogen fueling infrastructure.
Under CEO Steve Girsky, a former vice chairman for General Motors, Nikola has shifted its focus to building battery and hydrogen trucks and setting up fuel stations to power them. Previous plans to produce green hydrogen and electric pickup trucks, military vehicles, and watercraft have been scrapped. The company’s shares closed at 95 cents in Nasdaq trading, up 6.5%, but still far below their peak of $65.90 in June 2020 before Milton’s resignation. To survive long term, Nikola must reduce quarterly losses and find sufficient funds to scale up production of its trucks, as it lost $966 million last year and reported $465 million in cash.
While Nikola’s current sales volume is modest, it appears to be outperforming Tesla in the electric truck market. Nikola has delivered 154 hydrogen and battery trucks since last year, while Tesla has not provided any delivery figures for its Semi truck since Elon Musk announced production in late 2022. The Tesla Semi is not registered among the trucks qualifying for California’s clean truck rebates, indicating it may not be selling well in the market with high demand for electric commercial vehicles. So far, Frito-Lay and Pepsi are the only known users of the Tesla Semi, with about 100 trucks hauling chips and soda in California.
Nikola is focused on getting its trucks to customers in California, where a state program provides a rebate to fleet customers who buy the Tre FCEV. The company recently opened a HYLA hydrogen station in Ontario, California, that can initially refuel 40 trucks a day. Nikola anticipates further sales growth as its hydrogen fueling solutions come online. However, the company faces challenges in reducing losses and securing funding to scale up production. Despite these obstacles, Nikola continues to make progress in the heavy truck market and solidify its position as a leader in the hydrogen-powered semi industry.
