Nikola Corp (NASDAQ:NKLA) announced it has begun production of its electric semi-trucks on March 21.
Nikola shares are up 9% in the pre-open Thursday on this update.
Mark Russell, CEO of Nikola Corp . said the company is expected to start in the second quarter of the year, with the truckmaker planning to deliver 300 to 500 Tre BEV semi-trucks in 2022.
The company hasnt reported any revenue from truck sales yet.
The EV company held its Analyst Day this week. JPMorgan analyst Bill Peterson visited Nikolas factory and was allowed to test drive the Tre BEV truck and Tre FCEV truck.
Peterson said he gained a favorable impression after the ride and was impressed with the trucks performance and manufacturing readiness.
Peterson also noted an increasing customer interest in BEV and FCEV trucks and added Nikolas hydrogen ecosystem continues to grow.
RBC analyst Joseph Spak also took part in the tour and said he believes Nikola is making rapid progress, but its still very early days and execution and capital risk present.
Nikola told analysts that the Coolidge facility's progress is on track. The EV company is still looking to start US deliveries in Q2 2022 and Europe is scheduled for Q3. The guidance remains 300-500 trucks for this year.
"Hydrogen infrastructure remains a key component of the long-term strategy to support Tre FCEV and hydrogen fuel adoption. NKLA now looking to take a more asset-light, capital-efficient approach targeting strategic and financial partnerships through SPVs on the production and dispensing segments but will look to maintain 100% control of the distribution segment to ensure that customers have fuel where they need it. NKLA retains meaningful upside with industry growth and cuts capital needs significantly while also derisking execution by bringing in strategic partners," Spak said in a client note.
Nikola is likely to raise another $700 million this year as it is projecting its 2023 cash burn at close to $900 million.
Nikola shares are down around 10% YTD.
By Senad Karaahmetovic