Nikola (NKLA) to wean down spending, cut staff to optimize zero-emission truck production
Following a hint that this was coming during its Q1 2023 earnings report, Nikola Corporation shared a business update that includes plans for decreased cash usage and a “reorganizing” of its workforce. The EV startup is prioritizing the North American market as it looks to lean down and optimize to ensure the continued production of its zero-emissions trucks.
Nikola Corporation ($NKLA) continues to fight on as a viable business in zero-emission commercial vehicles after a bumpy past filled with deceit. Since its new executives have taken over the helm, Nikola has bounced back as a viable contender that has no intention of giving up.
We’ve seen the company restructure multiple times in the past in order to optimize, especially as it pertains to the production of its zero-emissions trucks and the batteries that power them. To cap off 2022, Nikola Corporation stumbled a bit, but there was plenty of optimism when looking ahead to this year.
Last month, the startup shared its Q1 earnings for 2023, which again relayed growing losses. As a result, the company announced a shift in its business strategy that would include a honed focus on its native North America. This move included a sale of its stake in its European joint venture with Iveco Group, equating to $35 million in cash back in addition to 20.6 million shares of stock returned.
Today, Nikola Corporation shared a progress update that includes non-essential business spending and will now include a slight cut to its current workforce.
Nikola trims fat to optimize EV and hydrogen business
Nikola shared a bullet point list of its business optimization strategy today, outlining actions previously alluded to in the aforementioned Q1 report alongside some new decisions. Current CEO Michael Lohscheller spoke:
Nikola has initiated a more focused business plan this quarter, concentrating on North America, zero-emission truck production, and our HYLA hydrogen business. Our battery-electric truck is in the marketplace and performing well for our customers, and the hydrogen fuel cell electric truck will go into production in a matter of weeks. We are proactively managing costs and reducing expenses. We are streamlining operations, including our organizational structure, to efficiently execute our objectives.
To lean down and optimize cash in hand going forward, Nikola shared it is in the process of enacting the following business actions:
- Realigning cost structure and reducing cash use by reorganizing workforce and rationalizing spend in all areas of the business.
- Concentrating on the North American marketplace, including the planned sale of the company’s joint venture share to Iveco Group.
- Localizing the supply chain where possible, including transitioning battery manufacturing from Cypress, Calif. to the Nikola plant in Coolidge, Ariz., along with planned assembly of Bosch fuel cell power modules in Coolidge. Both actions are expected to reduce material cost of the trucks.
- Prioritizing a capital-efficient approach for the HYLA hydrogen energy infrastructure business, including a strategic partnership with Voltera to develop up to 50 hydrogen stations over the next five years.
- Focusing on launching the company’s Class 8 hydrogen fuel cell electric truck in Q3, which currently has 178 sales orders from 14 end customers.
- Optimizing production at the Coolidge, Ariz. manufacturing facility to accommodate Nikola’s battery-electric and hydrogen fuel cell electric trucks on one assembly line.
- Ongoing restructuring of legacy Romeo business and shut down of legacy Cypress operations.
Notice that first one? It may not sound like much, but it’s a biggie. It’s never fun to report any layoffs, but it’s something Nikola feels it must do to optimize its business going forward. According to the company, about 150 employees assisting in Nikola’s European programs will be let go alongside another 120 employees working at the startup’s Phoenix and Coolidge sites.
The job cuts alone are expected to save Nikola over $50 million in cash spending annually, while 900 employees will remain at the company. The company states it is “supporting those affected with transition assistance.”
Due in part to the actions being taken above, Nikola Corporation expects to decrease its cash usage to under $400 million annually by 2024. All eyes will be on Nikola’s next quarterly report to see how the business is faring following this latest shift in business strategy.
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First Solar just cut the ribbon on a huge new factory in Iberia Parish, Louisiana, and it dwarfs the New Orleans Superdome. The company’s $1.1 billion, fully vertically integrated facility spans 2.4 million square feet, or about 11 times the size of the stadium’s main arena.
The factory began production quietly in July, a few months ahead of schedule, and employs more than 700 people. First Solar expects that number to hit 826 by the end of the year. Once it’s fully online, the site will add 3.5 GW of annual manufacturing capacity. That brings the company’s total US footprint to 14 GW in 2026 and 17.7 GW in 2027, when its newly announced South Carolina plant is anticipated to come online.
The Louisiana plant produces First Solar’s Series 7 modules using US-made materials — glass from Illinois and Ohio, and steel from Mississippi, which is fabricated into backrails in Louisiana.
The new factory leans heavily on AI, from computer vision that spots defects on the line to deep learning tools that help technicians make real‑time adjustments.
Louisiana Governor Jeff Landry says the investment is already a win for the region, bringing in “hundreds of good-paying jobs and new opportunities for Louisiana workers and businesses.” A new economic impact analysis from the University of Louisiana at Lafayette projects that the factory will boost Iberia Parish’s GDP by 4.4% in its first full year at capacity. The average manufacturing compensation package comes in at around $90,000, more than triple the parish’s per capita income.
First Solar CEO Mark Widmar framed the new facility as a major step for US clean energy manufacturing: “By competitively producing energy technology in America with American materials, while creating American jobs, we’re demonstrating that US reindustrialization isn’t just a thesis, it’s an operating reality.”
This site joins what’s already the largest solar manufacturing and R&D footprint in the Western Hemisphere: three factories in Ohio, one in Alabama, and R&D centers in Ohio and California. Just last week, First Solar announced a new production line in Gaffney, South Carolina, to onshore more Series 6 module work. By the end of 2026, the company expects to directly employ more than 5,500 people across the US.
Read more: First Solar pours $330M into a new South Carolina solar factory
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No, it’s not the new Bolt. GM’s design team previewed a new high-riding “sporty Chevrolet EV” that should be brought to life.
Is Chevy launching a new sporty EV?
This is the all-electric vehicle Chevy should sell in the US. General Motors’ design team released a series of sketches previewing a sporty new Chevy EV.
Although it kinda looks like the new 2027 Chevy Bolt EV as a higher-sitting compact crossover SUV, the design offers a fresh take on what it should have looked like.
The new Bolt is essentially a modernized version of the outgoing EUV model with a similar compact crossover silhouette. Nissan adopted a similar style with the new 2026 LEAF as buyers continue shifting from smaller sedans and hatchbacks to crossovers and SUVs.
Will we see the sporty Chevy EV in real life? It’s not likely. For one, the “exploration sketch” is by GM China Advanced designer Charles Huang.
GM Design posted the sketches on its global social media page, but the caption read “Sporty Chevrolet EV for the China Market.”
It’s too bad. The Bolt could use a sporty sibling like an SS variant. Chevy introduced the Blazer EV SS (check out our review) for the 2026 model year, its fastest “SS” model yet. Packing up to 615 horsepower and 650 lb-ft of torque, the Chevy Blazer SS can race from 0 to 60 mph in 3.4 seconds when using Wide Open Watts (WOW) mode.
Will the Bolt be next? I wouldn’t get my hopes up. And if GM does bring the sporty Chevy EV to life, it will likely only be sold in China. Like all the fun cars these days.
What do you think of the design? Would you buy one of these in the US? Let us know your thoughts in the comments.
While deliveries of the 2027 Bolt are set to begin in early 2026, Chevy is offering some sweet deals on its current EV lineup, including up to $4,000 off in Customer Cash and 0% APR financing for 60 months.
Ready to test drive one? You can use our links below to find Chevy Equinox, Blazer, and Silverado EVs at a dealership near you.
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Environment
Podcast: Electricity is the base currency, Tesla Robotaxi crashes, new Porsche Cayenne EV, and more
In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss electricity becoming the base currency, Tesla Robotaxi crashes, the new Porsche Cayenne EV, and more.
The show is live every Friday at 4 p.m. ET on Electrek’s YouTube channel.
As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.
After the show ends at around 5 p.m. ET, the video will be archived on YouTube and the audio on all your favorite podcast apps:
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Here are a few of the articles that we will discuss during the podcast:
Here’s the live stream for today’s episode starting at 4:00 p.m. ET (or the video after 5 p.m. ET:
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