Nikola’s recall was costly in Q3, but does rising orders signal the worst is behind it?
After recalling all of its battery electric trucks that it had delivered, Nikola’s losses widened in the third quarter. However, with orders rising for its hydrogen fuel cell truck, is Nikola turning the page?
Nikola CEO Steve Girsky, said the company is “Capitalizing on our first-mover advantage with our hydrogen fuel cell electric truck.”
The company officially launched its 2024 model year hydrogen fuel cell electric truck on September 28, 2023.
Nikola has 277 non-binding orders to date for its fuel cell electric truck. The company says it remains “laser-focused” in go-to-market activities.
Customer demos also began in Southern California using third-party infrastructure and mobile solutions. With over 6,000 miles accumulated during demo’s, Nikola says its hydrogen fuel cell trucks have 98% uptime.
Girsky believes the company has an advantage as it moves toward hydrogen fuel cell trucks. He explained there’s a market with “the introduction of the Advanced Clean Fleets Rule, and incentives like HVIP and ISEF.”
These incentives offer a massive break for the startup providing $288,000 and $408,000, respectively, per hydrogen fuel cell electric truck in California.
As of October 27, Nikola accounted for around 96% of the hydrogen fuel cell truck HVIP voucher requests and 50% of the BEV requests.
Nikola BEV truck recall weighs on Q3 earnings
After recalling all 209 Tre BEV electric trucks sold this year in August, Nikola said repairs are expected to be roughly $61.8 million during its Q3 earnings.
Nikola has decided to replace the Romeo battery packs on existing BEV trucks with a different solution.
This includes the cost to re-engineer, validate, and retrofit the Tre BEV trucks that were sold to customers.
Nikola says cash payments will begin over the next nine months to a year. They will be partially offset by $13 million from remaining BEV truck sales and the $10.7 million in accounts receivable.
The company expects to begin battery electric truck deliveries again in the first quarter of 2024. Despite this, Nikola received an order for 47 BEV trucks from one dealer.
Nikola’s net losses soared in Q3 amid the recall. The company’s losses widened to $425.8 million, up from $236.2 million last year.
The company did raise its cash balance to $362.9 million, up from $225.9 million at the end of 2022.
Nikola’a stock is up 10% following its Q3 earnings announcement as investors hope the worst is behind it. Meanwhile, it’s still down over 65% over the past 12 months.
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Hyundai is about to launch a new electric SUV in China. With its big debut coming up, Hyundai just dropped a sneak peek, and it looks like it could be the IONIQ 4. Check it out for yourself in the video below.
Is Hyundai teasing the IONIQ 4?
We caught our first glimpse of the new EV model last month after Beijing Hyundai released a few official “spy” photos.
Despite the camouflage, you can see a few design elements, like a light bar across the front, slim LED headlights, and a closed-off grille. At first, it almost looks like a smaller version of the IONIQ 9, Hyundai’s first three-row electric SUV, but with a much sportier, shaped profile.
Beijing Hyundai released a new teaser for the upcoming electric SUV this week. The video shows “a wave of high-end operations” as the vehicle dances across the snow.
The video highlights features like real-time torque control, high-speed cornering, and the SUV’s impressive body control while driving around cones.
Hyundai’s new electric SUV is being called “OE” internally, according to The Korean Car Blog, suggesting it could be an IONIQ model.
All other Hyundai IONIQ EV models were also codenamed with an “E” internally, which is raising speculation that this could be the IONIQ 4.
Like most global OEMs, Hyundai is fighting to compete in an intense Chinese EV market, which is dominated by domestic automakers like BYD.
Hyundai opened its first overseas R&D center last year in China to spearhead its comeback. It will work with local suppliers and tech companies to develop EVs designed for Chinese buyers. The new electric SUV is expected to launch in China later this year, followed by three new energy vehicles, including EVs and EREVs.
Beijing Hyundai will release more information on April 16, with the electric SUV set to “challenge the limit of driving performance.”
What do you think of Hyundai’s new electric SUV? Is this the IONIQ 4? Let us know your thoughts in the comments.
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Charge point provider char.gy has secured a £130 million contract to install 6,000 curbside EV chargers for Brighton and Hove City Council (BHCC) – the UK’s largest installation of its kind.
London-based char.gy has also been awarded a 15-year contract to operate and maintain the charging network.
Installing Level 2 chargers curbside, where most drivers in the UK park, will enable more people to take advantage of cheaper charging rates while juicing up their EVs overnight. (charg.gy’s pay as you go night tariff, between midnight and 7 am, is £0.39/kWh, compared to its £0.59/kWh day tariff.)
John Lewis, chief executive of char.gy, said the project is “a huge moment for the UK and its EV ambitions. This partnership alone will empower thousands of residents to confidently make the switch to electric vehicles, knowing they have easy access to chargers.”
Brighton and Hove City Council is among the first to tap into the government’s Local EV Infrastructure (LEVI) Fund, designed to help English local authorities roll out charging solutions for residents without off-street parking. Future of Roads Minister Lilian Greenwood said making EV charging as accessible as possible is “crucial to making the switch to electric a success.”
The UK now has over 75,000 public EV chargers, according to the Department for Transport—and it looks like the country’s on pace to hit its 2030 target. Back in December, the National Audit Office said the rollout is “on track” to meet the DfT’s estimate that at least 300,000 chargers will be needed by the end of the decade.
Read more: Meet the UK’s largest solar + storage EV charging ‘Superhub’
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