P A G E / 1 CAPITAL MARKETS DAY M A R C H 2 0 2 2
P A G E / 2 Forward-Looking Statements This presentation includes certain statements that are not historical facts but are forward-looking statements. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “planned,” “predict,” “potential,” “seem,” “seek,” “target,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to: market opportunity and expectations; statements relating to our future performance, including estimates and forecasts of financial and performance metrics; manufacturing capacity at our facilities; our proposed hydrogen fueling ecosystem structure and the anticipated benefits thereof, including our mobile charging and fueling stations; timing of revenue generation, expected delivery of our trucks, prototyping and vehicle testing, volume production, as well as other milestones; expected performance levels and specifications of our trucks; terms and potential benefits of planned or future collaborations with strategic partners; our planned dealer and service network, including geographical coverage and expected warranty; our beliefs with respect to component level challenges and any potential impact on our business; expected customer engagements; potential value of regulatory incentives; future capital expenditures; and our business model and related assumptions. These statements are based on various assumptions and on the current expectations of management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond our control. These forward looking statements are subject to a number of risks and uncertainties, including: the failure to realize the anticipated benefits of planned collaborations or to enter into definitive documentation related thereto; design and manufacturing changes and delays; general economic, financial, legal, regulatory, political and business conditions and changes in domestic and foreign markets; the potential effects of COVID-19, including disruptions to our supply chain, employees, operations, sales and overall market conditions; component shortages and supply chain constraints; demand for and customer acceptance of our trucks; risks associated with development and testing of fuel-cell power modules and hydrogen storage systems; risks related to the rollout of our business and the timing of expected milestones; the effect of competition on our business; customer satisfaction with our trucks; the level of customer orders and our ability to deliver trucks to meet orders; the outcome of legal, regulatory and judicial proceedings to which we are, or may become a party; the availability of capital; our stock price and general stock market volatility; the impact of political and economic instability and geopolitical tensions, including outbreak of hostilities, wars, or other acts of aggression, such as the current conflict in Ukraine, terrorism and political unrest, boycotts, curtailment of trade, government sanctions and other business restrictions; and the factors, risks and uncertainties regarding our business described in the “Risk Factors” section of our annual report on Form 10-K for the year ended December 31, 2021, as amended, filed with the SEC in addition to our subsequent filings with the SEC. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that we presently not know or that we currently believe is immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect our expectations, plans or forecasts of future events and views as of the date of this presentation. We anticipate that subsequent events and developments will cause these assessments to change. We disclaim any obligation to update these forward-looking statements in the future. These forward-looking statements speak only as of the date hereof and should not be relied upon as representing our assessments as of any date subsequent to the date of this presentation. Accordingly, undue reliance should not be placed upon the forward-looking statements. Trademarks Nikola and the Nikola logo are trademarks of Nikola Corporation. All other trademarks and service marks are the property of their respective owners. Copyright © 2022 Nikola Corporation
P A G E / 3 S E C T I O N P R E S E N T E R S • Over 20 years of experience building and managing companies in the manufacturing industry • Served as president and COO of Worthington Industries (NYSE:WOR) • Previously, served as General Manager of Engineered Aerospace Products at Alcoa Corp. (NYSE:AA) • Education: BS from Weber State University and JD from Brigham Young University • Over 20 years of experience in principle investments, private equity, investment banking, corporate restructuring, and operational performance improvements • Served as Partner and Sr. Managing Director at Solic Capital • Previously, served as CFO and General Manager for various companies in manufacturing, business services, and healthcare • Education: BS from Brigham Young University and MBA from Northwestern’s Kellogg Graduate School of Management MARK RUSSELL CHIEF EXECU TIVE OFFICER KIM BRADY CHIEF F INANCIAL OFFICER
P A G E / 4 COLLABORATIONQUALITY SAFETYTRANSPARENCY HUMILITY D R I V E F O R W A R D M O V E FA S T W O R K O U T W A R D A C T A S O W N E R S OUR VALUES We WORK OUTWARD by considering the impact our efforts have on each other, our partners, and our customers
P A G E / 5 01 02 COMPANY INTRODUCTION 03 TRUCK PORTFOLIO - BEV - FCEV BUSINESS MODEL WALKTHROUGH 07 REGULATORY 08 PEOPLE 06 COMMERCIAL STRATEGY 04 MANUFACTURING 05 H2 FUELING ECOSYSTEM TABLE OF CONTENTS
P A G E / 6 S U M M A R Y O F K E Y VA L U E D R I V E R S LARGE TAM ADDRESSED BY DIFFERENTIATED BUSINESS MODEL • $600B global TAM addressed by “bundled lease” offering of FCEV trucks, hydrogen fuel, and truck services • Compelling product offerings of BEV and FCEV trucks to address short-haul and medium-haul applications CAPITAL EFFICIENT HYDROGEN ECOSYSTEM STRATEGY • Partnership model enables Nikola to achieve asset-light and capital-efficient H2 infrastructure development while preserving and optimizing value creation and profit margin • Nikola’s FCEV fuel demand provides a catalyst for investment from strategic and financial partners, reducing the equity requirements from parent co. for H2 ecosystem buildout PATH TO MEANINGFUL REVENUE GENERATION EXPECTED IN 2H 2022 • Expect to deliver 300 – 500 BEV trucks largely in 2H 2022, when critical components become more available(2) • Backlogs of LOIs, MOUs, and POs expected to increase as Nikola produces and delivers production Tre BEVs in 2022 and into 2023 ROBUST MANUFACTURING CAPACITY • Manufacturing capacity for up to ~2,400 trucks by Q1 2022 and ~20,000 trucks by Q1 2023 in Coolidge, AZ(1) • Start of BEV truck series production expected to begin the end of Q1 2022 (Coolidge, AZ) STRONG STRATEGIC PARTNERSHIPS • Strategic partners with industry leaders to help drive execution and increase speed to market • Expansive strategic partnerships span the entire truck and hydrogen ecosystem H 2 F U E L IN G E C O S Y S T E M + C L A S S 8 T R U C K S 1) Expected assembly line capacity Coolidge, AZ, facility running 2 shifts 2) Plant capacity only. Actual truck production expected to be 300 – 500 units in 2022 due to parts shortage PRODUCTION Nikola Energy Supply & Trading (ES&T) DISPENSING MARKET-LEADING PRODUCTS • BEV and FCEV product offerings address the short, medium, and long-haul segments of class 8 trucks • Expected category-leading vehicles specifications and performance for BEV and FCEV
P A G E / 7 • High-profile customer wins with leading truck fleet operators • Up to 425 Tre BEV and up to 1,010 Tre FCEV trucks under LOI / MoU / PO R E C E N T S U C C E S S E S Nikola continues to execute on stated goals, building toward a zero-emission future STRONG CUSTOMER MOMENTUM 4 RECENT EXECUTIONAL MILESTONES • Secured key strategic partnerships (TC Energy, TA, Opal Fuels) • Expanded dealer and service networks EXPANDED PARTNER ECOSYSTEM • SEC settlement of $125 million civil penalty, payable in five installments over two years CONCLUDED SEC INVESTIGATION • Michael Lohscheller joined as President of Nikola Motor division • Lynn Forester de Rothschild joined as independent director STRENGTHENED MANAGEMENT • Successful deliveries of test units for on-road milage accumulation o BEV (TTSI) o FCEV (Anheuser-Busch) CUSTOMER FLEET PILOT TESTING • 40 pre-series truck builds • Start of production commenced Mar 21, 2022 START OF PRODUCTION
P A G E / 8 I N T R O D U C T I O N : W E A R E N I KO L A NIKOLA’S VISION: Be the leader in zero-emission commercial transportation, by building and managing the next generation truck and fueling ecosystem C O M P A N Y O V E R V I E W • Founded in 2015 • Headquartered in Phoenix, AZ • As of March 2022, ~1,012 employees • +$1.8B of capital raised to-date(1) • Business combination completed with VectoIQ and listed on NASDAQ in June 2020 S T R A T E G I C P A R T N E R S 1) Does not include undrawn value of equity line of credits (ELOCs) with Tumim Stone Capital LLC. As of Feb 2022 $409M remains undrawn on ELOCs H 2 F U E L I N G E C O S Y S T E M+C L A S S 8 T R U C K S PRODUCTION Nikola Energy Supply & Trading (ES&T) “Supply Co.” DISPENSING
P A G E / 9 NORTH AMERICA: $128B TAM ~$36B ~$63B ~$29B ~$600B TAM GLOBAL COMMERCIAL TRANSPORT ECOSYSTEM ~7M Trucks in Service D I F F E R E N T I AT E D B U S I N E S S M O D E L Unlike many competitors, Nikola intends to capture revenue throughout the entire commercial transport ecosystem G L O B A L M A R K E T O P P O R T U N I T Y ( 1 ) VS. Opportunity for Nikola to capture significantly more revenue per unit sold compared to traditional model F C E V BU N D L E D L E A S E I l l u s t r a t i v e - a c t u a l s m a y v a r y ~$231K VEHICLE (4) ~$413K FUEL (5) ~$105K SERVICE (6) TRADITIONAL MODEL(3) ~$749, 000 Fragmented value st ream VEHICLE FUEL SERVICE NIKOLA MODEL 100% of value to Nikola and Partners • Sales to FCEV bundled lease customers (2) • Sales to 3rd party customers o Other commercial vehicles o Passenger vehicles HYDROGEN FUEL $367B TAM(1) GLOBAL CLASS 8 TRUCK SERVICE $112B TAM(1) GLOBAL CLASS 8 TRUCKS $118B TAM(1) • BEV Sales directly to customers (2) • FCEV Sales via bundled lease (2) • Nikola bundled lease customers (2) • 3rd party BEV or FCEV customers FUEL 1) Based on proprietary research from ACT Research 2) Company estimates; subject to change 3) Estimated Total Cost of Ownership for traditional model in 2022 based on 7 years ownership 4) Represents cost of $170k ICE truck financed over 7-years or 700k miles 5) Based on DOE weekly avg. US diesel price for Jan – Mar 2022 x fuel efficiency of 6.7mpg x 700k miles 6) Assumes $0.17/mile over 700k miles (per ATRI cost of trucking 2021) SERVICETRUCK ILLUSTRATIVE PURPOSES ONLY; SUBJECT TO CHANGE
P A G E / 1 0 S T R O N G S T R AT E G I C PA R T N E R E C O S Y S T E M Nikola’s vision to decarbonize heavy-duty transportation is supported by a strong network of strategic partners Minimize Execution Risk Improve Speed to Market HYDROGEN HEAVY-DUTY VEHICLE INDUSTRY GROUP Signed agreement to industrialize global standard in hydrogen equipment JAN Rate schedule and ACC reg. approval AUG Expansion to dealer network for Class 8 truck sales and service coverage SEP Continued expansion of Class 8 truck sales and service coverage OCT Development, construction, ownership and / or operation of large-scale clean hydrogen hubs APR Collaboration to rollout nation’s first commercial H2 heavy-duty fueling station(s) Sales and services at dealer locations announced totaling 105+ sales and service centers nationwide APR Assembly and utilization of fuel-cell power modules using technology licensed from Bosch SEP DEC EU JV and North America production alliance APR Collaboration to leverage OGE’s pipeline for H2 distribution in the EU Reduce overall CAPEX / OpEx required to execute JUL Strategic collaboration for H2 infrastructure services Agreement to provide up to 800 FCEV trucks MAY C O L L A B O R A T I O N P H I L O S O P H Y S I N C E F O U N D A T I O N I N 2 0 1 5 Co-develop and construct hydrogen fueling stations and related infrastructure SEP First Partnership: (2017) Agreement to facilitate sales OF BEV and FECV JAN ( 1 ) 2018 2019 2020 2021 2022
P A G E / 1 1 PRODUCTS RYAN MCGEACHIE Group Head DONGHUI ZHANG Group Head ERIK MASON Group Head MO WAZIR Global Head, Product Development MICHAEL ERICKSON Global Head, BEV JASON ROYCHT Global Head, FCEV CAREY MENDES Group Head MANUFACTURING ENERGY SUPPLY & TRADING TECH. & PRODUCT DEVELOPMENT PROJECT DEV. & OPERATIONS ENERGY FINANCE KIM BRADY Chief Financial Officer STEVE GIRKSY Chairman of The Board MARK RUSSELL CEO E X E C U T I V E T E A M PABLO KOZINER President, Energy & Commercial H 2 F U E L I N G E C O S Y S T E M+C L A S S 8 T R U C K S MICHAEL LOHSCHELLER President, Nikola Motor COMMERCIAL MARK KEITH Global Head SUPPLY CHAIN MARK DUCHESNE Global Head, Manufacturing BRUNA CHIOSINI Head, Supply Chain and Logistics N I KO L A’ S M A N A G E M E N T T E A M
P A G E / 1 2 I V E C O S - W AY N I KO L A T R E : B E V N I KO L A T R E : F C E V I V E C O L A U N C H E D J A N 2 0 1 9 E X P. C O M M E R C I A L D E L I V E R I E S : Q 2 2 0 2 2 • Driver-centric design • Europe focused • Redesigned cab • Platform Electrification (BEV) • Up to 350-mile zero-emission range • Leverages existing Nikola Tre platform • Fuel-Cell integration (FCEV) • Up to 500-mile zero-emission range P R E - S E R I E S D E M O D E L I V E R Y : Q 4 2 0 2 1 ( T T S I ) E X P. C O M M E R C I A L D E L I V E R I E S : Q 4 2 0 2 3 A L P H A - S E R I E S D E M O D E L I V E R Y : Q 1 2 0 2 2 ( A B ) T H E N I KO L A T R E E V O L U T I O N Leveraging the IVECO S-WAY has increased speed to market for Nikola’s BEV and FCEV Tre programs SPECIFICATIONS SUBJECT TO CHANGE
P A G E / 1 3 N I KO L A’ S T R U C K P R O D U C T S Nikola is building strong momentum from recent customer wins that provide visibility into a pipeline for 2022 and beyond(1) 1) Subject to execution of definitive agreements or POs, and ability to deliver trucks; subject to order cancellation 2) HVIP has 100 unit per OEM limit + exemption for up to 50 drayage trucks (total 150) 8 0 0 ( 3 ) ( C o n t r a c t ) 1 0 0 ( 4 ) ( L O I ) 7 0 ( 4 ) ( L O I ) 4 0 ( L O I ) 3 0 ( 4 ) ( L O I ) 1 0 0 ( 4 ) ( L O I ) 1 0 ( O r d e r ) 1 0 0 ( 4 ) ( L O I ) 2 5 ( M O U ) 1 0 0 ( L O I ) 1 0 ( 4 ) ( L O I ) U P T O 4 2 5 Successful demos Trucks to dealers HVIP Activation(2) Charging solutions Defined regional priorities Key region fueling plans Successful demos 3) AB order for up to 800 FCEVs; subject to satisfaction of delivery timelines and vehicle specifications 4) LOIs based on satisfactory completion of the vehicle trials / demonstration programs 5 0 ( 3 ) ( L O I ) U P T O 1 , 0 1 0
P A G E / 1 4 LOGISTICS & DISTRIBUTION H 2 F U E L I N G E C O S Y S T E M ( 1 ) Leverage strategic and financial partners to help fund the development of infrastructure (production and dispensing), while capturing value and optimizing margin due to Nikola’s asset-light and capital-efficient approach BUILD H2 PRODUCTION PROCURE OTHER H2 SUPPLY H 2 F U E L I N G E C O S Y S T E M ENERGY OPTIMIZATION BUILD STATIONS SELL H2 TO NIKOLA + OTHER CUSTOMERS 1) PRODUCTION 2) Nikola Energy Supply & Trading (ES&T) “Supply Co.” 3) DISPENSING + +OWNED/CONTROLLED BY NIKOLA CONTROL H2 MOLECULE THROUGHOUT ECOSYSTEM 1) Planned ENERGY TRADING S TRATEG IC & f inancia l par tner S S TRATEG IC & f inancia l par tner S
P A G E / 1 5 BEV OVERVIEW 01 02 COMPANY INTRODUCTION 03 TRUCK PORTFOLIO - BEV - FCEV BUSINESS MODEL WALKTHROUGH 07 REGULATORY 08 PEOPLE 06 COMMERCIAL STRATEGY 04 MANUFACTURING 05 H2 FUELING ECOSYSTEM 01 BEV OVERVIEW 02 PROGRAM STATUS TECHNOLOGY03 VALUE PROPOSITION 04
P A G E / 1 6 • Over 30 years of experience of design and engineering of cars and light trucks • Previously VP of Engineering and Technology at TPI Composites • Spent 28 years at GM, left as the Global Chief Engineer for the Cadillac CT6 • Education: BSEE from Oakland University l Exec MBA from Michigan State University LYNDON LIE GLOBAL CHIEF ENGINEER, BEV • Nearly 30 years of experience in energy and durable goods & transportation; leading and growing manufacturing, and distribution businesses • Joined Nikola as president of Powersports from 2018 - 2020 • Previously served as VP and General Manager of Lubrication Technologies • Spent most of his career working for Honeywell (NYSE:HON) and Polaris Industries (NYSE:PII) • Education: BS in Energy Management | Finance from Minnesota State University, Moorhead MICHAEL ERICKSON GLOBAL HEAD, BEV S E C T I O N P R E S E N T E R S
P A G E / 1 7 TRE (US) TRE (EU) Sales Model Direct Sales Expected Deliveries Q2 2022 Q3 2023 Use Case Short-Medium haul routes Return to Base Applications Estimated Range Up to 350 miles(1) Anticipated Charge Time ~100 minutes(2) Nikola Advantage Early Mover Advantage, Range Expected to be among the first commercially available zero-emission trucks to market 1) Actual range will vary and depend on speed, temperature, topography, and payload 2) Represents expected ~80% state-of-charge (SOC) via a 350kW charger or ~200 minutes via a 175kW charger B E V O V E R V I E W State-of-the-art BEV trucks serve the short-to-medium haul needs of customers throughout the US and EU SPECIFICATIONS SUBJECT TO CHANGE
P A G E / 1 8 USE CASE CUSTOMER DEMOS ILLUSTRATIVE TIMELINE EXP. DELIVERIES 2022 300 – 500 • Metro-regional, return to base applications (i.e. inner city, drayage, etc.) • Extended range allows for continuous operations (slip seating) on local routes or regional hauls with average range of 300 miles on a single charge Purpose-Built Electrified Platform Up to 350(1) Mile Range 480kW / 645HP Continuous ~100 Minutes Charge Time(2) TRUCKS & KEY SPECS 1) Actual range will vary and depend on speed, temperature, topography, and payload 2) Represents expected ~80% state-of-charge (SOC) via a 350kW charger or ~200 minutes via a 175kW charger 3) Expected; subject to change 2021 2022(3) 2023(3) Q3 2021 Coolidge & Ulm production trials begin First pre-series truck customer deliveries Q4 2021 Q2 2023 Ulm production begins Q1 2022 Coolidge production begins Deliver 300-500 Tre BEVs to customers End of 2022 Ramp up production Full Year 2023 Q2 2022 First production truck customer deliveries JANUARY 2022 APRIL 2022(3) MARCH 2022 7+ TO BE ANNOUNCED JUNE 2022(3) EXP. Q2 2022 B E V O V E R V I E W SPECIFICATIONS SUBJECT TO CHANGE
P A G E / 1 9 VA L U E P R O P O S I T I O N Zero-emissions class 8 truck trusted to safely deliver goods with class-leading power & range, and an enhanced driver experience Maintenance & fuel cost savings for better TCO Cabover design for visibility and maneuverability Proven, safe, and reliable platform Advanced driver interface tech and connectivity 480kW/645HP Continuous 1) Scalable battery pack configuration to support multiple product variants and applications Modular (1) Battery with up to 3 5 0 - m i l e r a n g e SPECIFICATIONS SUBJECT TO CHANGE
P A G E / 2 0 C O M P E T I T I V E L A N D S C A P E 78% - REGIONAL Avg. ~300 – 320 daily miles DAY CA B MA R KET (2 ) ~ 9 5 k u n i t s a n n u a l l y COMPETITION U P T O 3 5 0 M I L E SA V G . ~ 2 0 0 M I L E S ( 1 ) Tre BEV’s longer range enables Nikola serve a greater portion of the day cab market NIKOLA’S RANGE IS KEY DIFFERENTIATOR 1) Estimated; subject to change. Average of competitor tractors that qualify for California HVIP as of Mar 23, 2022, and 300-mile Tesla Semi 2) Source: ACT Research 22% - LOCAL Avg. ~150 – 200 daily miles
P A G E / 2 1 T R E B E V P U R P O S E - B U I LT E L E C T R I F I E D P L AT F O R M E-AXLE BATTERY PACKS (9) POWER ELECTRONICS • DC-DC converters • HV distribution modules • Thermal controls/pumps • Electronic air compressor electrohydraulic steering • Electronic park brake control HV INVERTER (2)
P A G E / 2 2 T R E B E V C O M M I S S I O N I N G A N D D E L I V E R I E S 1) As of March 21, 2022. PROGRAM STATUS(1) 40 PRE-SERIES TRE BEVS 18 have been completed and del ivered to date 22 awaiting final checks and commissioning before delivery Tre BEV start of production (SOP) began 3/21/22
P A G E / 2 3 T R E B E V P I LOT T E S T I N G Began trials with TTSI on 12/17/21 Two (2) Tre BEVs delivered • Trucks have logged over 4,500 combined miles • Achieved 98% total uptime • Completed a 204-mile trip on a single charge, the longest range recorded by any BEV that TTSI has tested in their fleet Driver Feedback • Cab roominess • Great turning radius • High visibility • Ride is smooth and quiet • Strong power and torque
P A G E / 2 4 COMMENCED MAR 21, 2022 T R E B E V P R O D U C T L I F E C YC L E STA RT O F P R O D U CT I O N S H I P P I N G PRIMARY GATING ITEMS Fulf i l l customer orders. exp. f irst production deliveries Q2 2022 EXP. DELIVERIES 2022 300 – 500MODULES, BMS CHIPS, AND PACKS (1) Suppler allocation to support up to ~500 trucks builds in 2022 Supplier allocations support up to 300 – 500 truck builds in 2022 BATTERY CELLS 1) Includes secondary source battery packs expected late Q4 2022
P A G E / 2 5 Q & A
P A G E / 2 6 FCEV OVERVIEW 01 02 COMPANY INTRODUCTION 03 BUSINESS MODEL WALKTHROUGH 07 REGULATORY 08 PEOPLE 06 COMMERCIAL STRATEGY 04 MANUFACTURING 05 H2 FUELING ECOSYSTEM TRUCK PORTFOLIO - BEV - FCEV 01 ALPHA PILOT TESTING 05 04 02 PROGRAM STATUS 03 TECHNOLOGY ALPHA PROTOTYPE STATUS VALUE PROPOSITION
P A G E / 2 7 S E C T I O N P R E S E N T E R S • 23 years of engineering / business expertise at Bosch in various leadership positions in the US and Germany in automotive technical business development • Recognized by Automotive News as a rising star in 2018 for his efforts in the transformation of Bosch's Commercial Vehicle business • Joined Nikola as VP of Technology Development and Strategy in Q4 2019 after leading Bosch’s investment rounds and strategic partnership with Nikola • Education: Bachelor of Science in Mechanical Engineering from Kettering University JASON ROYCHT GLOBAL HEAD, FCEV • 13 years of experience in various engineering and engineering management roles at Bosch and Deutsche ACCUMOTIVE (Daimler) • Customer Chief Engineer at Bosch from 2017 to 2020 • Has held various other positions at Bosch including Sr. Manager and Sr. Technical Expert Powertrain Systems • Education: German Diploma (equivalent to Master of Science) from University of Stuttgart CHRISTIAN APPEL GLOBAL CHIEF ENGINEER, FCEV
P A G E / 2 8 T R E F C E V A L P H A P R OTOT Y P E P H A S E Global R&D effort | Parallel Engineering with key partners Unveiling Sept. 2021 Ulm, Germany 2021 Q32021 Q1 2021 Q2 2021 Q4 2022 Q1 + DESIGN AND BUILD OF FC1-2 VEHICLE TESTING (EU) BUILD FC3-7 VEHICLE TESTING (AZ, MI, ETC) “That’s a lot further along than I’d normally expect to see. This does not look like an alpha vehicle … this is almost like a pre-production vehicle… Tesla and Nikola are the only two that I think have got a good idea of what the future needs.” – Sandy Munro, CEO - Munro & Associates, Inc.
P A G E / 2 9 T R E F C E V P I LOT T E S T I N G ANHEUSER-BUSCH PILOT Start of pilot on Jan 25th, 2022 with two (2) Tre FCEV Alpha Trucks: • Kick-off pilot: trucks completed a 350-mile journey on one fueling o Nikola HQ (Phoenix, AZ) to AB distribution center (Ontario, CA) • The trucks are placed into daily service within AB’s Southern California distribution network supporting the Van Nuys brewery for a duration of 90 days • The target of the pilot is to demonstrate technology readiness and obtain real world design feedback with drivers and the logistics team • As of March 23, the FCEVs have accumulated ~8,000 combined miles and hauled over 1.5 million lbs of product
P A G E / 3 0 MILES Pilots will continue operations to achieve a total of 50k customer road miles by year end Highest customer shipment GCVW 81,780 lbs >90% combined up time Mobile fueling solutions convenient fueling at designated pilot locations Location: CA PILOT ROAD DATA PAYLOAD UP TIME MOBILE FUELING Q1 2022 Q2 2022 Q3 2022 Q4 2022 PILOT 1 AB – Los Angeles PILOT 2 TTSI – Port of LA ADD’L PILOTS To be announced SoCal and others 20232022 Pilots with FC1, 6, and 7 Continued testing & development with FC2-5 FCEV PILOT TIMELINE T R E F C E V A L P H A P I LOT S
P A G E / 3 1 F C E V VA L U E P R O P O S I T I O N 1) Actual range will vary and depends on speed, temperature, topography and payload 1) Up to 500 miles(1) for longer range / dual shift regional operations 2) Refueling times and locations comparable to diesel 3) Higher freight hauling vs. other ZEVs 4) Low net CI wheel-to-well vs. diesel 5) Battery & Fuel Cell operation optimizes efficiency / durability 6) Purpose-Built Electrified Platform w/ integrated Fuel Cell and storage 7) Zero tailpipe emission, exhaust product of H2 is water vapor 8) Nikola to create H2 infrastructure for FCEV customers 9) H2 fuel prices more predictable and stable compared to diesel KEY ADVANTAGES LEVERAGING THE TRE PLATFORM FOR FUEL CELL ELECTRIC 480kW/645HP Continuous Maintenance & fuel cost savings for better TCO Cabover design for comfort and maneuverability Proven, safe, and reliable platform Advanced driver interface tech and connectivity
P A G E / 3 2 T R E F C E V H Y D R O G E N F U E L C E L L D R I V E T R A I N Alpha Fuel Cell Prototype(1) Image via Robert Bosch BATTERY PACKS 2X 70kWh Usable E-AXLE (Power: 480 kW Continuous) H2 TANKS 3x Backpack Tanks 2x Saddle Tanks Nominal Working Pressure 700 bar Type 4 Composite FUEL CELL POWER UNITS 2x 100kW Net 1) Components shown are for prototypes and/or illustrative purposes only and may not represent production intent SPECIFICATIONS SUBJECT TO CHANGE
P A G E / 3 3 Start of production Ulm 2024 Beta builds begin in Coolidge & Ulm Start of production Coolidge 2022 2023 Pre-series production begins Gamma Builds Begin Customer Launch T R E F C E V T I M I N G TO M A R K E T ( 1 ) • Global R&D effort, Parallel engineering with key partners • Leverage maturity of Tre BEV platform for Tre FCEV Alpha testing • Tre FCEV Alphas Feedback incorporated into Tre FCEV Beta phase ALPHA BUILDS Beta Mileage Fleet Beta Validation Gamma Demos Dealer/Customer Delivery Alpha Demos Alpha Validation Cab with improved aerodynamics and thermal management Light weighting of cab/chassis Optimized Fuel Cell Power Modules (FCPMs) Updated controls and HMI BETA BUILDS AND BEYOND 2021 1) Milestones based on management projections, subject to change
P A G E / 3 4 2 0 2 2 S H O R T - M E D I U M - H A U L U P T O 3 5 0 MILE R A N G E L O N G - H A U L / S L E E P E R U P T O 9 0 0 MILE R A N G E 2 0 2 5 + T R E L A U N C H P L A T F O R M C O N T I N U E P L A T F O R M E V O L U T I O N M E D I U M - H A U L U P T O 5 0 0 MILE R A N G E 2 0 2 3 I M P R O V E D A E R O F U E L C E L L D R I V E T R A I N W E I G H T R E D U C T I O N H 2 I N F R A S T R U C T U R E N I KO L A V E H I C L E M A S T E R P L A N Continue to leverage, innovate, and execute SPECIFICATIONS SUBJECT TO CHANGE
P A G E / 3 5 Q & A
P A G E / 3 6 MANUFACTURING OVERVIEW 01 02 COMPANY INTRODUCTION 03 TRUCK PORTFOLIO - BEV - FCEV BUSINESS MODEL WALKTHROUGH 07 REGULATORY 08 PEOPLE 06 COMMERCIAL STRATEGY 04 MANUFACTURING 05 H2 FUELING ECOSYSTEM 01 ADAPTIVE MANUFACTURING04 ULM 02 OVERVIEW 03 COOLIDGE
P A G E / 3 7 S E C T I O N P R E S E N T E R • Over 30 years of automotive manufacturing and management experience • Oversaw production and volume ramp of Tesla’s Model S and Model X MARK DUCHESNE GLOB AL HEAD, MANU FACTU RING
P A G E / 3 8 COOLIDGE, ARIZONA ULM, GERMANY BACKGROUND Nikola’s 400+ acre greenfield manufacturing facility Repurposed existing IVECO facility to manufacture Nikola vehicles PURPOSE One line capable of producing both, BEV and FCEV for North American market (2) One line capable of producing both, BEV and FCEV for EU market (2) ANNUAL PRODUCTION CAPACITY (1) Up to ~45,000 Total Capacity BEV/FCEV Units Up to 10,000+ BEV / FCEV Units START OF PRODUCTION Commenced March 21, 2022 (Nikola Tre BEV for North America) Expected June 2023 (Nikola Tre BEV for European Market) 1) Maximum production capacity based on utilizing two 8-hour shifts in Phase 3; production and capacity targets are estimates and are subject to change. Product mix may be adjusted as necessary based on product demand 2) Nikola’s modular manufacturing process is adaptable to meet customer demands, regardless of product type. Manufacturing overlap consists of components overlap (chassis, inverters, braking, human-machine interface, eAxles, steering, interior design, electrical systems) as well as process overlap (assembly production line, warehousing, welding / painting, administration office) AND NIKOLA HQ (Phoenix, AZ) ~50 miles MANUFACTURING FACILITY (Coolidge, AZ) M A N U FA C T U R I N G O V E R V I E W
P A G E / 3 9 F A C I L I T Y P R O G R E S S PLANT CAPACITY (# of trucks) ~1,200 ~2,400 ~20,000 ~45,000 PHASE BREAKDOWN Pilot line, core facilities and buildings Main assembly hall expansions Introduction of cab assembly process line Addition of weld and paint buildings/infrastructure (2) Greenfield facility to support BEV and FCEV truck manufacturing Fuel-cell power module assembly expected by 2023 in support of the initial Tre FCEV production Bosch will provide key components for fuel-cell power module assembly P H A S E 1 . 0 P H A S E 2 . 0 P H A S E 3 . 0P H A S E 0 . 5 COMPLETED JULY 2021 ` DECEMBER 2020 Install first steel columns JULY 2020 Groundbreaking ceremony Core facilities, assembly, and test road installed JULY 2021 Assembly expansion area completed FEBRUARY 2022 Milestone Completed E S T. T I M E L I N E ( 1 ) Assembly expansion area started NOVEMBER 2021 COMPLETED MARCH 2022 Q1 2023 2024 1) Estimated; subject to change 2) Inclusion of paint and weld facilities subject to final make vs. buy decision NIKOLA HQ (Phoenix, AZ) ~50 miles MANUFACTURING FACILITY (Coolidge, AZ) C O O L I D G E M A N U FA C T U R I N G O V E R V I E W
P A G E / 4 0 F A C I L I T Y O V E R V I E W Nikola’s joint venture with Iveco offers access to its state-of-the-art manufacturing facility located in Ulm, Germany Minimum expected capital commitment Expected capacity of 2,000 units per year with opportunity to expand to 10,000 per year with existing footprint Iveco’s Ulm, Germany, facility offers Nikola prime access to serve EU market Official Inauguration (Sep 2021) US BEV Pre-Series Builds (Jun 2021) U L M M A N U FA C T U R I N G O V E R V I E W
P A G E / 4 1 ~60-65% Manufacturing Overlap • Overall Plant Capacity (Coolidge): Up to ~45,000 vehicle per annum • Products: BEV & FCEV COMPONENTS OVERLAP Chassis Inverters eAxles Steering Interior Design Electrical Systems Braking Human-Machine Interface (HMI) PROCESSES OVERLAP Assembly Production Line Administration Office Warehousing Welding / Painting N I KO L A’ S A DA P T I V E M A N U FA C T U R I N G Nikola’s modular manufacturing process is adaptable to meet customer demands, regardless of product type BATTERY FUEL CELL
P A G E / 4 2 Q & A
P A G E / 4 3 BREAK
P A G E / 4 4 03 MANUFACTURING ENERGY ECOSYSTEM OVERVIEW 01 02 COMPANY INTRODUCTION TRUCK PORTFOLIO - BEV - FCEV BUSINESS MODEL WALKTHROUGH 07 REGULATORY 08 PEOPLE 06 COMMERCIAL STRATEGY 04 05 H2 FUELING ECOSYSTEM 01 ECOSYSTEM OVERVIEW 02 BUSINESS ACTIVITIES - PRODUCTION / INCENTIVES - DISTRIBUTION - DISPENSING / INCENTIVES 03 NIKOLA SUPPLY CO. TCO DRIVERS04
P A G E / 4 5 S E C T I O N P R E S E N T E R S • Over 20 years of experience building and managing companies in the construction and energy industry • Served as President at Solar Turbines from 2015- 2019 • Previously served as Vice President / Regional Manager of Caterpillar Inc. from 2011 to 2014 • Education: BA from Boston College and JD from Boston College Law PABLO KOZINER PRESIDENT, NIKOLA ENERGY AND COMMERCIAL CAREY MENDES GOU P HEAD, ENERGY F INANCE • Over 20 years of experience in banking, finance and energy supply & trading • Served as Head of BP's North American Energy Supply & Trading business, • Global leadership for the BP Low Carbon trading business • Chief Risk Officer for BP's Integrated Supply & Trading unit • Education: BA, MBA from University of Calgary and CFA Charter Holder ERIK MASON GLOB AL HEAD, ENERGY SU PPLY AND TRADING RYAN McGEACHIE GLOB AL HEAD, ENERGY INFRASTRU CTU RE AND COMMERCIAL OPERATIONS • Over 20 years of experience in banking and energy commodity trading, working across the entire energy complex • Served as Managing Director of Global Structured Products for BP Energy Trading, developing large highly structured energy projects and solutions • Founding Chairman of Clean Hydrogen Future Coalition • Education: BM from University of Lethbridge and CFA Charter holder • Over 20 years of experience in the energy supply and trading industry • Served as Global Head of Structured Products Americas for BP Energy Trading • Deep experience Power, Natural Gas, and Low carbon markets • Education: BCom from University of Calgary and CFA Charter Holder
P A G E / 4 6 N I KO L A E N E R GY S T R AT E G I C D R I V E R S HYDROGEN FCEV TRUCK Safety Competitive H2 Cost Reliable Supply for Customers Low Carbon Intensity Energy Value Chain Monetization
P A G E / 4 7 LOGISTICS & DISTRIBUTION H 2 F U E L I N G E C O S Y S T E M ( 1 ) Leverage strategic and financial partners to help fund the development of infrastructure (production and dispensing), while capturing value and optimizing margin due to Nikola’s asset-light and capital-efficient approach BUILD H2 PRODUCTION PROCURE OTHER H2 SUPPLY H 2 F U E L I N G E C O S Y S T E M ENERGY OPTIMIZATION BUILD STATIONS SELL H2 TO NIKOLA + OTHER CUSTOMERS 1) PRODUCTION 2) Nikola Energy Supply & Trading (ES&T) “Supply Co.” 3) DISPENSING + +OWNED/CONTROLLED BY NIKOLA CONTROL H2 MOLECULE THROUGHOUT ECOSYSTEM 1) Planned ENERGY TRADING S TRATEG IC & F INANCIAL PARTNERS S TRATEG IC & F INANCIAL PARTNERS
P A G E / 4 8 HUB PRODUCTION 3RD PARTY OFFTAKE ROBUST HYDROGEN SUPPLY Execute short term supply agreements with strategic partners to bridge long-term supply and enable spot system balancing, trading and optimization across the growing asset network Opportunistically execute offtake agreements with 3rd party producers to secure low-cost, low carbon-intensity hydrogen FIXED INFRASTRUCTURE SHORT TERM SUPPLY 1 2 Partner with Infrastructure Developers to access low cost of capital to build large scale hydrogen production H Y D R O G E N S U P P LY S T R AT E GY ( 1 ) Supply low cost and low CI hydrogen to our customers with a clear path to net zero by taking a technology-agnostic approach to produce or source hydrogen in every region 1) Planned
P A G E / 4 9 H2 PRODUCTION MODELS 3) DISPENSING ECONOMICS ONSITE H2 is produced and dispensed onsite Off-take price to be negotiated with ”Supply Co.”R E V E N U E P R O D U C T I O N M A R G I N Estimated steady-state fixed return of 7-10% P R O D U C T I O N C O S T Production incentives intended to reside at production entity, serve to offset NKLA offtake price STRUCTURE & IMPACT 1) PRODUCTION(2) OPPORTUNISTIC OFF-TAKE 1) Based on current expectations; subject to change 2) Production assets to be structured as SPV where Nikola owns 0% - 50% of the production entity 2) DISTRIBUTION“Supply Co.” HUB-AND-SPOKE • Production assets to be structured as SPV where Nikola owns 0%-50% • SPVs to be funded by partners with a lower cost of capital • Robust pipeline for projects ideally suited for investment from ESG funds • Plans to commence construction of the first H2 production hub 2H 2022 + STRATEGIC & FINANCIAL PARTNERS H Y D R O G E N P R O D U C T I O N ( 1 ) Nikola is partnering with strategic and financial partners to help fund H2 production facilities to support Nikola’s Hydrogen demand from FCEV leases
P A G E / 5 0 • Not currently available — “Build Back Better” bill proposed o Up to $3.00 / kg H2 produced, or • Credits dependent on CO2 emittance per kg H2 produced Potential Incentive Value: ~$0.45 - $3.00 / kg • Existing tax credit of $12-$50 / mt of CO2 captured & sequestered • Proposals in congress could boost to $175 / mt – current consensus target increase is centering around ~$85 / mt Potential Incentive Value(1): ~$0.07 - $0.52 / kg CO2e kgs to produce a kg of H2 PTC per kg At least 0.0 but less than 0.45 $3.00 At least 0.45 but less than 1.5 $1.002 At least 1.5 but less than 2.5 75¢ At least 2.5 but less than 4 60¢ At least 4 and not more than 6 45¢ 45Q – Qualified Carbon Capture Producer Tax Credit (PTC) 1) Based on $12-$85 Credit Value / mt of CO2 P R O D U C T I O N I N C E N T I V E S – C U R R E N T / P OT E N T I A L Existing and proposed legislation is expected to allow Nikola to capitalize on further value creation
P A G E / 5 1 DISTRIBUTION MODELS 3) DISPENSING ECONOMICSSTRUCTURE & IMPACT 2) DISTRIBUTION Distribution rate per kg / mile negotiated with ”Supply Co.”R E V E N U E D I S T R I B U T I O N M A R G I N Distribution company to achieve rate of return based on capital invested D I S T R I B U T I O N C O S T Cost per kg of hydrogen distribution 1) PRODUCTION PIPELINE Leverage existing pipeline infrastructure ROAD Dedicated road trailers, including: • Liquid • Compressed Gas • Distribution a pass-through cost, impacts “Supply Co.” P&L • Reduced capital required by Nikola to execute its business plan • Initially per-mile cost to “Supply Co.” • Over time, Nikola may own/operate distribution assets + STRATEGIC & FINANCIAL PARTNERS “Supply Co.” H Y D R O G E N D I S T R I B U T I O N Nikola to partner with distribution partners who have assets and experience in transportation and logistics
P A G E / 5 2 1) PRODUCTION • Partners help offset CAPEX and increase speed to market • Modular construction designed to allow for gradual phase-out of diesel pumps at existing fueling lanes (reduces timing risk for station operators) • Nikola Bundled Lease brings H2 DEMAND, “Supply Co.” brings station H2 SUPPLY ECONOMICS + STRUCTURE & IMPACT STATION SPECS(3) ANNOUCNED PARTNERS Retail stations Beta station expected to be operational 1H 2023 Behind the Fence Individual large customers Nikola bundled-lease customers and other third partiesR E V E N U E D I S P E N S I N G M A R G I N Shared based on ownership in each individual dispensing SPV M O L E C U L E C O S T Price of Hydrogen set by “Supply Co.” CAPEX and costs of operating dispensing station D I S P E N S I N G C O S T ~ 1 0 5 - ~ 2 1 0 4-8+ TPD ability to support 105- 210+ bundled leases 3) DISPENSING(2) 4 - 8 + Initial 4-8+ TPD dispensing capacity Modular for expansion flexibility 700 bar pressure (~10,000 psi) ~20 min fuel time, similar to diesel7 0 0 1) Based on current expectations; subject to change 2) Nikola plans to own 0% - 100% of any dispensing station SPV 3) Illustrative; subject to change 2) DISTRIBUTION STRATEGIC & FINANCIAL PARTNERS “Supply Co.” H Y D R O G E N D I S P E N S I N G ( 1 ) Nikola plans to partner with both strategic and financial partners to build out dispensing stations to reduce CAPEX and improve speed to market
P A G E / 5 3 Potential Incentive Value: ~$0.94 - $3.64 / kg(1) LOW CARBON FUELS 1) Depending on Production Technology Used & LCFS Credit Price Hydrogen Biodiesel Renewable Diesel Bio-methane Ethanol Electricity Credits generated through dispensing fuels produced with low carbon intensity (CI) Designed to reduce CI of transportation fuel pool & increase use of low carbon and renewable alternatives Goal to reduce CI of transport fuel 20% by 2030 Credits can be monetized by credit sales ($125-$200 $/MT LCFS recent range) D I S P E N S I N G I N C E N T I V E S – C U R R E N T / P O S S I B L E Low Carbon Fuel Standard (LCFS)
P A G E / 5 4 N I KO L A “ S U P P LY C O.” I L L U S T R AT E D H2 PRODUCTION SPV’s H2 DISPENSING SPV’s May refuel at any station in Nikola network CUSTOMER Nikola Responsible for DISTRIBUTION from any number of production facilities into any number of dispensing stations Nikola H2 Margin comes via “Supply Co” # of H2 kgs x margin per kg H2 H2 H2 PROCURES SELLS Nikola Energy Supply & Trading (ES&T) “Supply Co.” ILLUSTRATIVE PURPOSES ONLY; SUBJECT TO CHANGE
P A G E / 5 5 1) PADD – “Petroleum Administration for Defense Districts”; Source: US Energy Information Administration (“EIA”) Form EIA-888; US Diesel Prices - https://gasprices.aaa.com/state-gas-price-averages/ as of 21-March-2022; CAD Diesel Prices - https://www.caa.ca/gas-prices/ as of 21-Mar-2022 H Y D R O G E N M A R K E T D R I V E R S Regional Diesel Pricing $6.26 $6.04 $5.19 $5.26 $5.34 $4.65 $4.94 $4.87 AZ Hub WVR Hub $4.78 • TCO competitive with diesel • Favorable production economics in region • Supportive government legislation • High customer density • Ability to leverage existing infrastructure ENTRY & EXPANSION DRIVERS Illustrative, as of March 2022(1)
P A G E / 5 6 Q & A
P A G E / 5 7 03 04 MANUFACTURING H2 FUELING ECOSYSTEM COMMERCIAL OVERVIEW 01 02 COMPANY INTRODUCTION TRUCK PORTFOLIO - BEV - FCEV BUSINESS MODEL WALKTHROUGH 07 REGULATORY 08 PEOPLE 06 COMMERCIAL STRATEGY05 01 02 03 DEALER AND SERVICE NETWORK07 MOBILE STRATEGY FIXED INFRASTRUCTURE 06 SALES FUNNEL OVERVIEW04 COMMERCIAL STRATEGY 05 SALES PROCESS CALIFORNIA HVIP
P A G E / 5 8 S E C T I O N P R E S E N T E R S • Over 20 years of experience building and managing companies in the construction and energy industry • Served as President at Solar Turbines from 2015-2019 • Previously served as Vice President / Regional Manager of Caterpillar Inc. from 2011 to 2014 • Education: BA from Boston College and JD from Boston College Law • Over 28 years of experience within transportation, power solutions, sales and service • Served in various roles, including Vice President, at Solar Turbines from 1997-2019 • Previously served as Senior Engineer at American Airlines from 1992 to 1997 • Education: BS from Texas A&M • Executive Education: Thunderbird School of Global Management; Stanford Graduate School of Business PABLO KOZINER PRESIDENT, NIKOLA ENERGY AND COMMERCIAL MARK KEITH GLOBAL HEAD, BU SINESS DEVELOPMENT AND SERVICE
P A G E / 5 9 ELECTRIC TRUCKS O U R O F F E R I N G Battery-electric class 8 trucks Hydrogen fuel cell-electric vehicles ENERGY Battery charging solutions Hydrogen production & fueling stations C U S TO M E R S O L U T I O N S ( 1 ) 1) Purchase will be the primary solution for BEV trucks. However, FCEV truck solutions may be structured as a purchase with a fuel/service contract Bundled lease will be the primary solution for FCEV trucks. However, in some cases BEV truck solutions may be structured as a bundled lease with dealers including infrastructure, service contracts, etc • Vehicle • Service & support plan through dealers D I R E C T P U R C H A S E • Vehicle • Energy (H2 or charging) • Service & support plan B U N D L E D L E A S E SERVICE Dealer network in place to support sales and service C O M M E R C I A L K E Y S T R AT E G I E S
P A G E / 6 0 SALES PROCESS Tour of Nikola HQ and/or Coolidge Manufacturing Plant Marketing Events Customer Demos and Pilots LOIs and Orders Class 8, Battery Electric Day Cab Tractor Charging Solutions Service Support P R O D U C T US – March 2022 EU – 2023 CAN - 2024+ T I M I N G ( 1 ) Local/Regional Day Cab Ops Innovative/Incentive-Driven Sustainability-Focused C U S T O M E R T R E B E V G O -TO - M A R K E T S T R AT E GY 1) Expected; subject to change
P A G E / 6 1 S TAT E I N C E N T I V E S CA HVIP $120k - $150k Incentive (available March 30, 2022) POs for 20 Vouchers secured Total add’l pipeline - 116 vouchers NY TVIP Up to $185k Incentive (Pending) Other Programs Other states considering • Up to ~$240M in total funding available next round (March 30, 2022 opening) • OEM rolling limit of 100 vouchers outstanding • Customer limit of 30-50 vouchers PROGRAM DETAILS
P A G E / 6 2 B E V S A L E S F U N N E L Nikola is building strong momentum from recent customer wins that provide visibility into a pipeline for 2022 and beyond (1) 1) Subject to execution of definitive agreements or POs, and ability to deliver trucks; subject to customer cancellation 2) HVIP has 100 unit per OEM limit 3) LOIs based on satisfactory completion of the vehicle trials / demonstration programs Successful demos Trucks to dealers HVIP Activation (2) Charging solutions 3 0 ( 3 ) ( L O I ) 1 0 0 ( 3 ) ( L O I ) 1 0 ( O r d e r ) 1 0 0 ( 3 ) ( L O I ) 2 5 ( M O U ) 1 0 0 ( L O I ) 1 0 ( 3 ) ( L O I ) 5 0 ( 3 ) ( L O I ) High Potential: • 14 customers • 126 trucks • Success rate > 85% High Interest: • 16 customers • 285 trucks • Success rate > 60% BEV PIPELINE AS OF MAR 2022 UP TO 425 UNDER LOI / MOU POTENTIAL 2022 DELIVERIES: 300-500 BEVs
P A G E / 6 3 F C E V S A L E S F U N N E L Nikola is building strong momentum from recent customer wins that provide visibility into a pipeline for 2022 and beyond (1) FOCUS FOR 2022 • Prioritize California market • Target top national fleets • Leverage demos and BEV deployments • Follow H2 infrastructure roll-out U P T O 7 0 0 + Continue to Build Demand Through 2H 2023 Launch 8 0 0 ( 2 ) ( C o n t r a c t ) 1 0 0 ( 3 ) ( L O I ) 7 0 ( 3 ) ( L O I ) 4 0 ( L O I ) Defined regional priorities Key region fueling plans Successful demos 1) Subject to execution of definitive agreements or POs, and ability to deliver trucks; subject to customer cancellation 2) AB order for up to 800 FCEVs; subject to satisfaction of delivery timelines and vehicle specifications 3) LOIs based on satisfactory completion of the vehicle trials / demonstration programs UP TO 1,010 UNDER CONTRACT /LOI / MOU FCEV PIPELINE AS OF MAR 2022
P A G E / 6 4 BEV & FCEV ADOPTION HURDLES Permanent infrastructure 12-18 months to construct, permit, commission, and operationalize Requires a commitment to a specific location Nikola’s mobile charging solutions are designed to solve near-term barriers to adoption • To provide immediate charging solutions to fleets • Locations at depots or remote environments • Low capital cost MOBILE CHARGING TRAILER • Flexible solution to test/enter new H2 dispensing markets • Fleets can use to flex new routes or regions • 200 - 700 bar(2) fueling options MOBILE FUELING TRAILER 1) Planned, subject to change 2) 700 bar mobile fueling trailers will be available 2H 2022 N E A R -T E R M E N E R GY S O L U T I O N S – M O B I L E F U E L E R S ( 1 ) Illustrative Rendering
P A G E / 6 5 CHARGING PLAYBOOK – CONSULTING AND GUIDANCE Charger Supplier Dealer Network • Supplier since March 2020 • Deep expertise in power solutions Infrastructure Solutions Providers + STRATEGIC & FINANCIAL PARTNERS Truck operational & duty cycle analysis Depot requirements – electrical loads Charging optimization Utility coordination – rates an incentives Dealer energy solutions Key input to TCO modeling F I X E D I N F R A S T R U C T U R E
P A G E / 6 6 D E A L E R A N D S E R V I C E N E T W O R K The dealer network is essential to providing a national sales and service network for customers RIG360 65 HOLT Truck Centers 7 Carter Machinery 12 Ring Power 14 Wagner Equipment Co 11 D E A L E R A N D S E R V I C E P A R T N E R S ( 1 ) 127 in total Continued expansion across continental U.S. expected to continue throughout 2022 1) Subject to execution of definitive documents INFRASTRUCTURE Shop bays, tools, diagnostics COLLABORATION Customers, dealers, service providers suppliers, component OEMs SAFETY Driver, techs, operating safety COMMUNICATION ERP in place and integrated with Service, Parts, Warranty LOGISTICS Footprint coverage, parts ENGINEERING Quality, durability, reliability robust 360 processes WORK STANDARDS & PROCESSES Preventative maintenance Engineered methods TECHNICIAN PROFICIENCY Certif ication process for primary & ancillary vendors and dealers WARRANTY Policies, coverage and recovery from suppliers DATA ANALYTICS Predictive maintenance ~4-6%* WARRANTY COVERAGE *of average sales price(1) SERVICE Alta 6 Quinn Company 12
P A G E / 6 7 D E A L E R D E L I V E R I E S
P A G E / 6 8 Q & A
P A G E / 6 9 REGULATORY OVERVIEW 01 02 COMPANY INTRODUCTION 03 TRUCK PORTFOLIO - BEV - FCEV BUSINESS MODEL WALKTHROUGH 07 REGULATORY 08 PEOPLE 06 COMMERCIAL STRATEGY 04 MANUFACTURING 05 H2 FUELING ECOSYSTEM 01 NIKOLA’S FOCUSED INITATIVES04 MANDATES 02 OVERVIEW 03 INCENTIVES
P A G E / 7 0 S E C T I O N P R E S E N T E R • Over 20 years of experience on commercial litigation, intellectual property, corporate formation, and governance, and real estate matters • Served as a partner at the law firm of Beus Gilbert PLLC • Graduated with honors from the University of Michigan Law School and completed his undergraduate studies at Brigham Young University BRITTON WORTHEN CHIEF LEGAL OFFICER
P A G E / 7 1 F E D E R A L , S TAT E , A N D F O R E I G N I N C E N T I V E S Various federal, state, and foreign incentives provide favorable ZEV heavy-truck tailwinds FEDERAL STATE FOREIGN INCENTIVES • Infrastructure Jobs and Investment Act (Signed Nov ‘21) o Regional Clean H2 Hub Program ($8B) o Ports Infrastructure Development Program ($0.5B) o Charging and Fueling Infrastructure Program ($2.5B) • U.S. DOE Loan Program ($40B) o Infrastructure technology to reduce emissions for a clean energy future CA Hybrid Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) • Tre BEV – up to $150k/truck NY Truck Voucher Incentive Program (NY TVIP) • Tre BEV up to $185K/truck Pending Approval Low Carbon Fuel Standard (LCFS) • Market-based credit program to reduce carbon intensity (CI) • CA, OR, WA, and 8 additional states pending • Germany o Federal Ministry of Transport and Digital Infrastructure ($7.9B) o 80% of the incremental cost of replacing a diesel truck with a ZEV truck
P A G E / 7 2 FEDERAL STATE FOREIGN MANDATES • EPA Proposed Clean Truck Rulemaking (Final YE ‘22) o Stronger NOx and GHG standards to reduce pollution starting model year (MY) ‘27 • Advanced Clean Truck (ACT) Standard o MY ‘24/’25 through ‘35 zero emission truck sales require: 55% of Class 2b - 3 75% Class 4 – 8 (Straight- trucks) 40% truck-tractor o Adopted = 6 states o Pending = 8 states • MOU for zero-emission medium/heavy-duty vehicles – signed Fall ‘21 o Target for ZEV new truck/bus sales 100% by 2040 o Signed by: UK, Canada, Austria, Norway, Denmark, Finland, Switzerland, etc. H E AV Y T R U C K - S P E C I F I C M A N DAT E S Mandates and requirements specific to heavy-duty trucks are driving changes to transportation sector
P A G E / 7 3 • Voted to advance ZEV-related bill $100k/zero-emission truck in tax credits o Cap up to $10M each for BEVs and FCEVs • Roadmap for other state ZEV incentive programs OKLAHOMA HYDROGEN LEGISLATION • Working with Senate and White House to include hydrogen in federal weight exemption • Plans to initiate a pilot program to study the impact of zero-emission truck deployment on the federal interstate system FEDERAL WEIGHT EXEMPTION AND ZERO-EMISSION TRUCK PILOT PROGRAM • Climate-Related Tax Credits (Commercial Vehicle & H2 Production) o Strong outreach & communication with key senators o Purpose: to advance a climate tax package in spending bill BUILD BACK BETTER N I KO L A’ S A C T I V E R O L E I N P O L I C Y F O R M AT I O N Nikola is working to effect positive heavy-truck legislative activity
P A G E / 7 4 Q & A
P A G E / 7 5 PEOPLE OVERVIEW 01 02 COMPANY INTRODUCTION 03 TRUCK PORTFOLIO - BEV - FCEV BUSINESS MODEL WALKTHROUGH 07 REGULATORY 08 PEOPLE 06 COMMERCIAL STRATEGY 04 MANUFACTURING 05 H2 FUELING ECOSYSTEM 03 WORKFORCE ALIGNMENT THROUGHOUT ORGANIZATION02 EXECUTIVE COMP STRATEGY01
P A G E / 7 6 S E C T I O N P R E S E N T E R • Served as the Senior Director of Talent at Vista Outdoor • Worked with the H.J. Heinz Company as a Business Partner for the company’s corporate team supporting the CFO, General Counsel, CHRO, SVP of Marketing, SVP of Communications and SVP of Investor Relations • Graduated with honors from the Marriott School of Management with a master’s degree in Public Administration and cum laude with a bachelor’s degree in Communications from Brigham Young University JOSEPH PIKE CHIEF HU MAN RESOU RCES OFFICER
P A G E / 7 7 RISK REFLECTED $1 Executives make $1 cash a year All other compensation is stock, creating a 99:1 at-risk pay ratio LONG-TERM ORIENTED 3 Executive annual stock awards cliff vest after 3 years Encourages long-term thinking and decision making SHAREHOLDER ALIGNED Executive performance awards are tied to shareholder gains in the form of stock prices hurdles ($25, $40, $55) Only earned if prices are met and maintained for a specified period E X E C U T I V E C O M P E N S AT I O N S T R AT E GY A L I G N E D TO S H A R E H O L D E R S
P A G E / 7 8 D R I V I N G A M E N TA L I T Y O F O W N E R S H I P
P A G E / 7 9 A G R O W I N G P R O D U C T- F O C U S E D P O P U L AT I O N
P A G E / 8 0 Q & A
P A G E / 8 1 03 04 MANUFACTURING H2 FUELING ECOSYSTEM BUSINESS MODEL WALKTHROUGH 01 02 COMPANY INTRODUCTION TRUCK PORTFOLIO - BEV - FCEV PEOPLE07 REGULATORY 08 BUSINESS MODEL WALKTHROUGH 06 COMMERCIAL STRATEGY05 01 BUSINESS MODEL OVERVIEW 02 TRUCK ECONOMICS - BEV - FCEV ILLUSTRATIVE H2 VALUE CHAIN04 03 ILLUSTRATIVE BUNDLED LEASE OVERVIEW 05 COOLIDGE CAPEX OVERVIEW 06 OTHER ITEMS - OTHER POTENTIAL REVENUE OPPORTUNTIES - FUNDING OVERVIEW
P A G E / 8 2 S E C T I O N P R E S E N T E R • Over 20 years of experience in principle investments, private equity, investment banking, corporate restructuring, and operational performance improvements • Served as Partner and Sr. Managing Director at Solic Capital • Previously, served as CFO and General Manager for various companies in manufacturing, business services, and healthcare • Education: BS from Brigham Young University and MBA from Northwestern’s Kellogg Graduate School of Management KIM BRADY CHIEF F INANCIAL OFFICER
P A G E / 8 3 B U S I N E S S M O D E L O V E R V I E W R E V E N U E D R I V E R S Units Sold Average Sales Price BEV P R I M A R Y G O - T O - M A R K E T S T R A T E G Y ( 1 ) T R U C K S FUEL & SERVICE BEV Truck Revenue D I R E C T S A L E B U N D L E D L E A S E H 2 Kg Dispensed Rate per kg H2 Ecosystem Revenue Miles Driven S e r v i c e Rate per Mile Service Revenue Units Sold Average Sales Price FCEV Truck Revenue F C E V 1) Subject to change ILLUSTRATIVE PURPOSES ONLY; SUBJECT TO CHANGE
P A G E / 8 4 BOM $375K Labor, OH, Warranty, Freight $125K T R E B E V 2022 Guidance 2023 Steady State (1) GROSS MARGIN (75%) - (60%) EXPECTED POSITIVE GM EXPECTED ~20% GM BILL OF MATERIALS REDUCTION SUPPLY CHAIN LOCALIZATION VOLUME INCREASE OTHER ECONOMIES OF SCALE 1) Steady state production expected in 2025+ $300K Sales Price ($200K) Gross Profit (60%) Gross Margin ($500K) COGS K E Y S T O C O S T R E D U C T I O N B E V U N I T E C O N O M I C S ILLUSTRATIVE PURPOSES ONLY; SUBJECT TO CHANGE
P A G E / 8 5 BUNDLED LEASE ~10%~50% ~40% T R E F C E V At Launch 2H’23 2024 Steady State (1) GROSS MARGIN (75%) - (60%) EXPECTED BREAKEVEN EXPECTED ~20% GM 1) Steady state production expected in 2026+ 2) Capacity = # of trucks the manufacturing facility is capable of building per annum. Volume = actual # of trucks SOLD per annum, subject to market penetration, ZEV adoption, supply chain, etc 2H 2023 Launch of Tre FCEV Positive gross margin expected in 2024 Coolidge capacity ~20,000 total units at 2023 launch 45,000 Current Capacity 2022 Phase 3.0 Capacity 2024 C O O L I D G E M F G C A P A C I T Y (2) 2,400 Capacity ONLY F C E V U N I T E C O N O M I C S ILLUSTRATIVE PURPOSES ONLY; SUBJECT TO CHANGE
P A G E / 8 6 TARGET Match or Beat TCO of traditional diesel Modeling Guidance I L L U S T R AT I V E B U N D L E D L E A S E – F C E V O N LY Revenue from FCEV leases is allocated between Truck, Fuel, and Service 1) Illustrative per mile cost range for traditional diesel, management estimate only, actual costs vary customer by customer 2) Bundled-lease payment may be structured as one contract, or may contain up to three separate contracts, subject to change 3) Bundled-lease allocations rates may vary and are subject to change 4) Subject to change, 7.5 mile /kg efficiency may vary based on speed, temperature, topography, and payload ILLUSTRATIVE TCO RANGE(1) B U N D L E D L E A S E ( 2 ) I L L U S T R A T I V E L E A S E A L L O C A T I O N % ( 3 ) EACH FCEV LEASE 7-yrs or 700,000 miles (whichever comes f i rst) 7.5 mi/kg H2 (4) 700,000 mi ÷ ~ $ 1 . 0 5 / M i l e T O ~ $ 1 . 2 5 / M i l e Traditional Diesel 93,333 kgs H2 (per 7-year lease) R E V E N U E & C A S H R E C O G N I T I O N A FUEL PRICE B FUEL VOLUME H 2 ~50% OVER 7-YRS F C E V ~40% UP-FRONT S e r v i c e ~10% OVER 7-YRS ILLUSTRATIVE PURPOSES ONLY; SUBJECT TO CHANGE
P A G E / 8 7 I L L U S T R AT I V E H 2 VA L U E C H A I N Each Step in Value Chain Captures Profit as Molecule Moves from Production to Customer 100% OWNED/CONTROLLED NIKOLA ES&T “SUPPLY CO.” REVENUE $$$$ MOLECULE COST ($$) DISTRIBUTION COST ($) “SUPPLY CO.” PROFIT $ PRODUCTION SPVs PRODUCTION REVENUE $$ PRODUCTION COST ($) PRODUCTION PROFIT $ DISPENSING SPVs DISPENSING REVENUE $$$$$ MOLECULE COST ($$$$) DISPENSING COST ($) DISPENSING PROFIT $ CUSTOMER Implied $/kg Allocated fuel portion of bundled lease Nikola ES&T profit x kg H2 dispensed BUNDLED LEASE ~10%~40% ~50% + S TRATEG IC & F INANCIAL PARTNERS + S TRATEG IC & F INANCIAL PARTNERS ILLUSTRATIVE PURPOSES ONLY; SUBJECT TO CHANGE
P A G E / 8 8 I L L U S T R AT I V E I M PA C T O F H 2 I N C E N T I V E S “Supply Co.” captures benefits of tax or monetized credits through value chain through increased margins PRODUCTION SPVs DISPENSING SPVs ES&T PRODUCTION TAX CREDITS # of eligible kgs produced Credit $/kg H2 Produced PRODUCTION TAX CREDITS Offsets costs of production Allows lower sales price to “Supply Co.” Lowers Molecule Cost to “Supply Co.” LCFS CREDIT # of eligible kgs dispensed Credit $/kg H2 Dispensed LCFS CREDITS Higher Price/kg Sold into Dispensing Stations(1) Increases Molecule Revenue to “Supply Co.” Optimize Margin at “Supply Co.” BUNDLED LEASE ~10%~40% ~50% 1) Presence of LCFS credits will likely result in higher price/ kg purchased from “Supply Co.” ILLUSTRATIVE PURPOSES ONLY; SUBJECT TO CHANGE
P A G E / 8 9 E ST. CA P E X SPEND THRU DEC’21 2022 2023 TOTAL SPEND PHASE CAPEX ~$105M ~$150M ~$345M ~$600M BUILDING ~$85M ~$70M ~$95M ~$250M EQUIPMENT ~$20M ~$80M ~$100M ~$200M PAINT & WELD $0 $0 ~$150M ~$150M NIKOLA HQ (Phoenix, AZ) ~50 miles MANUFACTURING FACILITY (Coolidge, AZ) D A B C B Inclusion of paint and weld facilities and equipment subject to final make vs. buy decision (decision by Q2 2022) A Equipment includes truck capacity expansion and fuel cell power module (FCPM) assembly C Includes buildout of phase 3.0 building and equipment capacity plus the ramp up of FCPM assembly capabilities D To reduce overall CAPEX Nikola may consider entering into a sale- leaseback agreement upon plant completion Includes Phase 2.0 facility and capacity expansion, commence buildout of FCPM assembly line, & test track facilities C C O O L I D G E C A P E X O V E R V I E W ILLUSTRATIVE PURPOSES ONLY; SUBJECT TO CHANGE
P A G E / 9 0 OPPORTUNITY REVENUE MODEL DESCRIPTION 50/50 European JV with IVECO Nikola and IVECO purchase trucks from the JV for sale in the EU market (1) Ulm production capacity [# units] Allocation to Nikola 50% ASP $$$ REVENUE Nikola units x $$$ Production Tax Credits are currently being considered (45Q, PTC, etc.). If formally adopted, would serve to reduce overall NET cost of production H2 PRODUCTION TAX CREDITS LCFS Credits are currently available in California, Oregon, and Washington, and likely to expand DISPENSING CREDITS Eligible H2 kg dispensed [# of kgs] LCFS credit / kg $$ REVENUE PER SATION kg x $$ Eligible H2 kg Produced [# of kg] Production Tax Credit / kg $$ REVENUE PER HUB Kg x $$$ 1) JV is a contract manufacturer selling Nikola & IVECO trucks at cost-plus 5% markup. Nikola and IVECO will sell trucks through their respective distribution channels in the EU market A D D I T I O N A L R E V E N U E G E N E R AT I O N & I N C O M E O P P O R T U N I T I E S ILLUSTRATIVE PURPOSES ONLY; SUBJECT TO CHANGE
P A G E / 9 1 FUNDING OVERVIEW $522M $436M FY21 Reported Cash R E P O RT E D L I Q U I D I TY as of 12.31.21 ~$958M LIQUIDITY AS REPORTED 12.31.21 ELOC Balance as of Dec. 31, 2021 NIKOLA TO BE FLEXIBLE AND OPPORTUNISTIC WHEN FUNDING FUTURE CAPITAL NEEDS MAINTAIN LIQUIDITY FOR NEXT 12 MONTHS 2022 NET CASH SPEND EXPECTED $720M – 775M ~$958M AVAILABLE LIQUIDITY AS OF 12/31/21 F U N D I N G O V E R V I E W ILLUSTRATIVE PURPOSES ONLY; SUBJECT TO CHANGE
P A G E / 9 2 Key 2022 Milestones for Nikola Deliver 300 – 500 production Nikola Tre BEVs to customers Successful pilot testing of Tre FCEV alpha trucks with customers (Anheuser-Busch, TTSI, and others) Build, test, and validate Tre FCEV beta trucks Announce location, break ground, and commence construction of the first hydrogen production hub in AZ Announce two or more dispensing station partners in CA 2 0 2 2 M I L E S TO N E S
P A G E / 9 3 Q & A
T H A N K Y O U
