Nikola (NKLA) released its first-quarter earnings on Tuesday, announcing it will refocus business operations in North America. After building sales momentum in Q1, Nikola says it will focus on what it knows best, including fuel cell trucks.
Nikola is refocusing its business in North America
Heavy-duty electric vehicle and FCEV maker Nikola said it produced 63 Tre battery electric trucks, delivering 31 to dealers and 33 in retail sales in the first three months of the year.
Nikola CEO Michael Lohscheller said the company would refocus business operations where it believes it has an advantage, including the North American market. Lohscheller stated during the company’s Q1 earnings:
We have the right products at the right time, and as we move forward, we will be focusing on the North American market, hydrogen fuel cell trucks, the HYLA hydrogen refueling business, and autonomous technologies.
As a result, Nikola is selling its stake in its European joint venture with Iveco Group. In exchange, Nikola will receive $35 million in cash and 20.6 million shares of stock returned to the company.
The Nikola and Iveco joint venture just revealed the Nikola Tre BEV truck designed for the European market last September, claiming it was looking to expand the partnership last quarter. Meanwhile, Iveco will continue to supply Nikola and is expected to remain a prominent investor.
Nikola believes it has a first-mover advantage in North America and can capture a good share of the commercial trucking market. The company says it’s also building out its hydrogen energy business to enable long-term growth.
The news comes as Nikola, among most EV startups, look to conserve cash with growing losses in the first quarter of 2023.
Nikola Q1 financial results and highlights
Nikola fell short of Wall St. estimates, reporting $11.1 million in revenue and an adjusted loss per share of 0.26 in the first quarter of 2023.
The commercial EV truck maker posted a net loss of $169.1 million compared to $152.9 million last year. Nikola ended the quarter with $121 million in cash, down from over $233 million in Q1 2022.
Higher losses are the result of the growing costs to manufacture and sell BEV and FCEV trucks, hence why Nikola is looking to double down on its business in the North American market rather than expand further into another market.
Nikola also said it would temporarily pause production in Coolidge at the end of May as it retools the assembly line for both hydrogen fuel cell and battery electric trucks on the same line. After the upgrades are complete, Nikola says the battery electric Tre will remain a built-to-order product.
Production is expected to resume in July, with the first hydrogen fuel cell trucks going on sale. Nikola anticipates it will begin battery module and pack manufacturing at the facility by the end of July and Bosch Fuel Cell Power Module assembly by the end of the year.
Nikola’s backlog for hydrogen fuel cell trucks grew to 140 orders from 12 customers as of Tuesday. The first two of 10 gamma hydrogen fuel cell trucks are completed, while the rest are expected to be done by the end of July.
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The cooling towers of the Three Mile Island nuclear power plant in Middletown, Pennsylvania, Oct. 30, 2024.
Danielle DeVries | CNBC
Power companies that are most exposed to the tech sector’s data center boom plunged early Monday, as the debut of China’s DeepSeek open source AI laboratory led investors to question how much energy artificial intelligence applications will actually consume.
Constellation, Vistra and GE Vernova have led the S&P 500 this year as investors speculated that AI data centers will boost demand for enormous amounts of electricity.
But DeepSeek has developed a model that it claims is cheaper and more efficient than U.S competitors, raising doubts about the vast sums of money the tech sector is pouring in to data centers.
The tech companies have anticipated needing so much electricity to supply data centers that they have increasingly looked to nuclear power as a source of reliable, carbon-free energy.
Constellation, for example, has signed a power agreement with Microsoft to restart the Three Mile Island nuclear plant outside Harrisburg, Pennsylvania. Talen is powering an Amazon data center with electricity from the nearby Susquehanna nuclear plant.
Vistra has not inked a data center deal yet, though investors see promise in its nuclear and natural gas assets. GE Vernova has soared this year as the market believes its gas and electric grid businesses will benefit from AI demand.
This is a developing story. Please check back for updates.
Executives from TravelCenters America (TA) and BP were joined by local elected officials at a ribbon cutting for the two companies’ first DC fast charging hub on I-95 in Jacksonville, Florida – the first of several such EV charging stations to come online.
Frequent road-trippers are no doubt familiar with TA’s red, white, and blue logo and probably think of the sites as safe, convenient stops in otherwise unfamiliar surroundings. The company hopes those positive associations will carry over as its customers continue to switch from gas to electric at a record pace in 2025 and beyond.
“Today marks a significant milestone in our journey to bring new forms of energy to our customers as we support their changing mobility needs, while leveraging the best of bp and TA,” explains Debi Boffa, CEO of TravelCenters of America. Boffa, however, was quick to – but TA is quick to point out that TA isn’ no’t leaving its ICE customers behind. “While this is significant, to our loyal customers and guests, rest assured TA will continue to provide the same safe and reliable fueling options it has offered for over 50 years, regardless of the type of fuel.”
The charging hub along the I-95 offers 12 DC fast charging ports offering up to 400kW of power for lickety-quick charging. While they’re at the TA, EV drivers can visit restrooms, shop at TA’s convenience store, or eat at fast food chains like Popeyes and Subway. Other TA centers offer wifi and pet-friendly amenities as well – making them ideal partners for BP as the two companies builds out their charging networks.
“As we expand our EV charging network in the US, I am thrilled to unveil our first of many hubs at TA locations,” offers Sujay Sharma, CEO of BP Pulse Americas. “These sites are strategically located across key highway corridors that provide our customers with en route charging when and where they need it most, while offering convenient amenities, like restaurants and restrooms.”
The new e2500-THL and TS electric Ultra Buggies from Toro offer construction and demo crews a carrying capacity of 2500 lbs. (on the TS model), six-and-a-half foot dump height (on the THL), nearly 13 cubic ft. of capacity, and hours of quiet, fume-free operation.
For their open-mindedness, those crews will be rewarded with machines powered by 7 kWh’s worth of Toro HyperCell lithium-ion battery. That’s good enough for up to eight hours of continuous operation, according to Toro – enough for two typical working shifts.
And, thanks to the Toro Ultra Buggies’ narrow, 31.5″ width, they can easily navigate man doors on inside jobs, as well, making them ideal for indoor demolition and construction jobs. A zero-turn radius and auto-return dump mechanism that ensures the tub automatically returns to the proper resting position make things easy for the operator, too.
Toro says that each of its small (for Toro) e2500 Ultra Buggy units can replace as many as five wheelbarrows on a given job site. Pricing is expected to start at about $32,000.