NKLA - Earnings call transcript Q1 2021

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Operator

Greetings and welcome to the Nikola Corporation's First Quarter 2021 Earnings Conference Call. At this time all participants are in a listen-only mode. We begin today's call with a short video, followed by management's prepared remarks. A brief question-and-answer session will follow the formal prepared remarks. [Operator instructions] As a reminder, this conference is being recorded.

the begin now will video presentation. We you. Thank now pleasure introduce to Worthen. Britton It's my you begin. Britton, may

Britton Worthen

and Welcome is Thank First afternoon and good you everyone. Financial Chief Earnings Executive of Officer. With Kim Chief Brady, Quarter to Call. me Russell, today Mark Officer Nikola; XXXX Corporation's Nikola

The Pacific business June full March call, this and presentation includes of statements within the XXXX we the Time our our company X release Today's that release XXXX the financial the our press a.m. outlook of our views share today's and certain forward-looking financial federal XXXX. results with distributed the along call. quarter earlier our Q&A slides quarter can on be year and meaning found website, and little During section the accompany a The on for results laws. will environment detailing for Relations securities Investor the were after today's morning. presentation

statements that and to uncertainties. predictions, from could and are in materially risks projections to Forward-looking expectations statements on actual communication. future subject cause as this a future forward-looking assumptions are about and Many statements and current differ based result are other events events factors

factors the Commission, quarterly that and factors Securities in of more XX-K information the risk subsequent results XX-Q to differ to our Exchange materially forward-looking Form cause For about annual Form the on our statements, earnings release section addition filings may well Company's filed we the as with and as actual press from report the refer please report SEC. with to issued today,

should With the undue to over will of hand that, reliance Mark. the speak Readers on only Forward-looking day not they statements. as put are to now call I forward-looking cautioned statements be made.

Mark Russell

We're Thanks Ulm, developments facilities progress update sales and updates Coolidge, to and announcements, Germany XXXX Tre we've Arizona. of our And overview first a the the what Britton. with partnership an manufacturing call. in provide service on on including to testing recent validation. achieved earnings And including RIGXXX. our you you going provide Nikola and an quarter Welcome BEV and on

After in locations Our infrastructure, announcement travel America we'll results the to it Germany to do collaboration of for collaboration update, to existing business services. install and total Centers this of our OGE stations over and hydrogen and collaboration questions. I'll course, answer after and Kim of at transportation with our best IVECO hydrogen discuss the turn with our he'll quarter for financial your that

controls winter the the Tre off in quarter. testing or validation Let's The to complete commissioning expectations We're continuing five crash of kick the of Nikola in facility end on and are Vehicle with that to manufacturing at in first validation which trucks process far the in those. batch and by Germany a in have are assembled And our five, be the BEV, progress that in the BEV, Germany. three first we've for status batches. will we at trucks of continued here. battery-electric of will Indiana on headquarters for top eight acquisition The the has of other August trucks number Number also this so the the with through Number validation the nine Arizona One for are begin Arizona exceeding correlation. the IVECO, our here XX. Four been of past in software commissioning of for proving two road today the Number to trucks complete week. in Ulm, of in finished poster to Three and is is to and next braking and our four validation. trucks is one demos The Arizona. in XXth stages We load development. anticipate on preparing number sent data of power testing. truck And for the remains is we for facility been those HMI going working of an joint update five which commissioned headquarters train customer the events still the remains and as ninth testing. ninth have are transit that first in first happening here of batch testing. and trucks industrial transit by venture grounds four of complex the on month the and truck headquarters is our On various May May. that

As dismantling and completed have four been software guided facility; modifications and is now on the vehicle complete, of nearly be the completed. is automatic The track restructuring that and the AGVs have of installed installation building we've to the the we'll hardware XX there today, been using validation that for nearly and building complete. system

June installed over equipment end Critical the and facility. have separate tooling we parts AGVs to line two our weeks. In hired production away. few Coolidge, have we the started for and just arriving and build be remaining While the at the have anticipate that about facility XX Arizona, for less installation to for by employees manufacturing month. than production Greenfield the starting next be far we've completed that XX of XX our workstations will where the in And already production we'll vehicles of XXXX, prepare will components months our in so trucks

the the quarter, progress take first the building made we been the to significant now that really construction; enclosed. form on starting substantially has facilities During

is construction beginning complete, The road manufacturing be equipment installed. floor have been electrical is installed. the mechanical and the the paving the utilities is ongoing, walls With to slab, the and are installation nearing completion roofing, and

from We'll December made has efficient in the possible process. since photos as deck. construction through The As in you see as we we've quite that to can Coolidge progress went be remarkable. continue been our vertical the in

area, building July fleet will located maintenance production trial there for a will from trucks going Midwest. they technicians vehicles. maintenance tax, key assembly vehicle expect and the out phases. assembly the building that And and system service base we've by expansion quarter, in this intersections in service rest we begun the RIGXXX there up started interstate Service and uptime of ideally they'll respect assembly X,XXX and in process. come a the service alpha one This and then we've As expansion us are prototype northeast in provides area. and channel expansive since first And and the in one, And areas been highway network vehicle also our in Coolidge end for the announced now cell locations. trucks it trucks and major been our approximately phase capacity phase our Nikola months begin Coolidge. Arizona XX future Ulm, the Coolidge that in be reputable the to our fuel Coolidge us prototype of three here had we customers of With that sales And of be back reliability start of and production service and the Tre shortly. to They've become assemble Nikola first sales over course have Coolidge, assembly agreement building now. throughout April per points spanning that there an be plans are for plant another will of the phase electric will metropolitan expansion than concluding here upon year. completion trucks for in we'll key continue concurrently more our we that and and On from and dealer X, customers. past, the centers to for southeast, vehicle RIGXXX network just and center these Germany

locations from first important Nikola distribution is with and building cost and XXXX, April us out fueling will deploy the customers are fueling our the IVECO to April but infrastructure of TravelCenters intent stations and that with top in at and in OGE, Europe. supported maintenance This and by service for the install for will and our our locations fueling XX, Germany. we collaborate to our and our these will OEM public going agreed step is On hydrogen delivery on just to IVECO not hydrogen Germany. these So RIGXXX for with enable OGE Nikola, open hydrogen trucks storage, own, sites. to to Nikola in the effective be provide two throughout key achieve hydrogen to pipelines. having is infrastructure of key XX uptime. an just America notch footprint OGE's vehicles to announced hydrogen existing FCEVs The in at locations TA in between collaboration passed production heavy-duty fueling desired solution installation the dispensing of hydrogen confidence On system providers conjunction agreement expected

quarter that able The in our this first of to step sometime anticipate United ecosystem quarter sets another to the building station infrastructure with hydrogen in locations is the late early be with third exact year. the quarter the the this agreement announce hydrogen two country out here of or across in operational And build are We be TA stations by second foundation here important XXXX. we'll States. This in the out commercially TA States. fueling expected United for the first

price already innovative or have us an parity allow we place should at to in Public produce fuel schedule which diesel As Company, Arizona with rate lower. Service electricity hydrogen with

the Port great corridors truck us Angeles California dispense electric The with able us. long and expedite the battery-electric with ago, trucking cover product vehicle along locations trials is and of Services now dual Southern to is the and includes It's a and intent using Inc, cell to Class announced to trucks. On our This electric gives X, vehicles. lineup both collaboration the will one vehicle be for Long and solutions. and to our Nikola a at of and testament X TA which with Transportation we have BEVs collaboration order we May short, companies do Los have fuel couple they'll for our vehicle just highly is purchasing being customer cell that is traveled fuel station advantage port of that different customers. them with accomplishment fuel of the a Beach. regional vehicles Nikola us to a haul XXX competitive semi to letter We of days a zero transportation Now Total collaboration emission prominent

operations. them. Our and distribution refuel higher over for I'll or can now BEVs give Metro to go the range address who to customers ideal needs port the it and charging than our FCEVs on faster right, of he'll battery Kim need are numbers. All have requirements And rage pass

Kim Brady

and Development and of Research on the in amortization. million. mainly is million, other $XX.X expenses for $XX.X Adjusted good negative development, legal Thanks of first and and from matters EBITDA and in service of million. in everyone. SG&A were stock-based and $XX.X expenses million Mark, validation legal loss testing, And quarter short in stock-based among the cell quarter professional $XX.X million a million incurred EBITDA $XX.X approximately and depreciation items, $XXX.X two, non-GAAP regulatory R&D morning, which stock-based three, seller is million was expenses on compensation totaled regulatory excludes, adjusted expense. trucks. building, $XX.X one, battery-electric the the cost. September article with In net Nikola fees and and were trade normal compensation; XXXX million first compensation of million incurred expense, other basis, costs and fuel million, consist $XX.X connection including $XX.X $X.X

growing headcount exceeded build at our continue of XXX in employees and As XXXX, a engineering, energy. is manufacturing rapid teams we and to pace total our March as XX,

the cash the quarter equivalent. first to and cash with of million we ended balance Turning sheet, $XXX.X

obligation. as aside March debt We XX headquarters outstanding of lease our from have no Phoenix

$X.XX of the $XX.X million ended net per with for well enclose the revaluation net non-GAAP quarter to diluted share basic stock-based $X.XX. share comprise manufacturing impact outstanding, the loss expenditures Basic and construction $XXX.X quarter totaled and Non-GAAP production. GAAP are approximately matters. million capital shares and and Basic was We warrants. million diluted equipment, BEV first the $XXX.X diluted and as of warrant of investments per supplier on and Coolidge legal and cents. loss weighted trade excludes tooling per Diluted was shares regulatory shares XXX year-to-date private approximately net first private Our as for weighted our average liability loss in average were million both Greenfield and the share compensation; of facility, in related the respectively. quarter gain

for we update an historical provide XXXX. VectoIQ the of accounted many been In liability [spec those have determined had that, to been wanted developments statement, we you mark-to-market this in the and the a our private companies. at Next, the reevaluated past counting warrants issued through the know working have this warrant recently end companies merger and several spec] staff similar on dis we for warrants in quarter as in light from accounting as equity, SEC assume weeks. of as the private have to stock for the should counted Previously, warrants and

future We our in restatement matter no the financial form million consider of accordingly, ended have liabilities or concluded. change This and ongoing effect on reported did year statements the Though board restatement cash the worked not previously impact additional $XX.X resulted the auditor gain XX, of non-current operating accounting for an XXXX cash Nikola's operations in our our statements or amended has treatment and expenses in position, we restatement $X.X plans. December non This XXXX. filed yesterday. flows, the to our with complete financial and cash million a XX-K

year turning guidance. and and outlook Now to QX fiscal XXXX our

the communicated we came XXXX, previously expense in our quarter of below For first ranges.

be to disbursements. focused on cash managing continue laser and We

the to For of of to R&D million $XX estimated compensation is in will expenses Total Estimated million of of of $XX operating stock-based estimated range stock-based $XXX includes compensation. the including in be $XX.X SG&A in stock-based of range range approximately expense. quarter which $XX.X billion, includes million, $XX.X the to million the second $XX million million, $XX.X million is XXXX, million which of compensation. $XXX

expenditures Our million. million quarter for to anticipated second capital XX $XX are the

million, increase anticipated to range million. $XX $XX R&D of due revised is was compensation R&D increase $XXX $XX our R&D in our have million to million. guidance from is to guidance now year which full of and R&D, $XXX stock $XX million, to is the for of expenses for million million $XXX $XXX $XX is expense Because million updated million We approximately XXXX an range compensation expected SG&A. XXXX Previously, stock solely guidance in operating to

million, previous anticipated Our $XXX of million guidance XXXX our $XXX million. full the compensation range SG&A related to million SG&A to of $XXX increase for year was from in to due $XXX

is to guidance SG&A $XXX range new $XXX Our million million.

full will to to million. Our the $XXX expenses million in remain revised million, weighted of ending Total On total be about in the compensation. approximately excluding expect a end of non-GAAP for expenses range shares operating million operating the $XXX stock-based total million. XXXX basis, XX, million. outstanding be estimated December unchanged, we $XXX average of be range $XXX shares will the will XXX the at And year XXXX, XXX

X,XXX hiring We employees roughly we XXX and XXXX, end have expect that of in will fulfill plant the XXX approximately engineering employees. our corporate plan the comprised of coming quarters. will manufacturing By employees we and

$XXX capital XXXX range for the anticipated million the million. Our to unchanged year remain expenditures fiscal of in $XXX

infrastructure, include one cell investment equipment, phase plans tooling, fuel engineering vehicle electric and Coolidge capital plant hydrogen manufacturing equipment. Our and supplier

venture Arizona partners, hydrogen Coolidge, additional at trial infrastructure continue Ulm, BEV the vehicle the first our XXXX. station, trial concludes the in prepared to on Germany Start our quarter production we Break the and and additional remarks. the in to customers June of fourth during This fleet hydrogen announced commercial announced in Nikola we customers As and of move in XXXX. joint July the testing Start facility on XXXX. deliver ground manufacturing vehicle at ecosystem achieving to production Tre of our look XXXX. facility Greenfield manufacturing forward execute following forward business plan, in milestones first

line for Operator? questions. We will now open the

Operator

Paul [Operator Instructions] JP Our Morgan. first Koster question is from of

PaulKoster

the of customers. constraints now what's orders track on on that Yes, the by of soon? potentially for as on XXX show believe to you Do And battery? do response? only of the fulfill with, is, I've BEV as supply you of a XXX that fourth the to for you're get are starting vehicles latest sales bundle still constraints. that Do those of supply to can my you of going questions, you much all bundle which think I is you know numbers finally But the target the the Mark, match? that still around quarter? because customer taking thank got to What questions question. start you're sort

MarkRussell

yes. course, Of

And chance ride good had here. the our facilities Tre test actually that and Brownfield. tour had in days then in and technical headquarters actually customer XX So far on our an BEV a been to and positive. of here to and fleets prototypes presentations. our has local so look represented update this the Germany in week. track in course, speaking under Phoenix trucks as the a the came response We fleets metaphorically Phoenix had this We of had Coolidge Greenfield production have hood, some very on to our And week they

positive reception, range the longer about So very to that's point coming don't market. know truck we this at

Our The XXX. right Tre XXX a with BEV closest now battery. we is coming to kilowatt competitively the of is know market

truck for issue driver great driver customers. again, these visibility very kilowatts, maneuverable. relatively range and on the continue should deliveries, radius. It's going got more going issue of compared X into truck almost lot routes, will applications an always always as wheelbase that's Class Metropolitan XXX the short advertise. will course an out range wheelbase is ideal longer to we're actual board And So base longest it there. translate great that of It's visibility energy return the a outstanding regional for to an that US range truck. kind a And for to the range, also trucks. be But It's for to to the with and or for be short we're of turning validate the

truck, having to so a the for we thing really think market. be great a in long-range a going is And customers

the the trying looking of they customer to because be for cell we're a that's launch. a truck been like is I've for customer want be launch doesn't for are willing finalize the launch I Tre BEV. evaluation. for we again, yet launch our And who customers the time, at talk partner wouldn't to long customer. customer What and early looking agreement will, the developing you our is we'd stepped this So Busch, and buy vehicles and up for with very for and haven't, said in fuel any launch relationship positive point a to to reception. model to we're test vehicles. Anheuser We kind That's one testing Anybody to for

of ongoing. number are And this those customers here had a negotiations those week. So we in target

are be in the cautiously put production are And have XX future. we the complete enough units able place on to are near that question, finish concern. already confirmation our and this we that able from with we'll we between enough Other current we've we going greater that So that the optimistic to to to have calendar year. cells, in guidance chain, delays, supply cells situation be and to of to battery we we'll do believe second on you explained stick receive trucks our now XXX parts

chips, number this We different are looking screens; of of touch are at of potential point. parts a course for there shortages

we'll across updated the across and end they're on globe who we'll this guidance don't next shortages that. under the is keep XXX the be that I were think this we to that we on the our by course, strain for supply space point. And know keep can't of - we're you going will quarter; to that any And of confident companies able just XX Because that of affect trucks. chain there you reason the we'll why of us. to of more, with of end is the up because know know updated we're do all you sticking at the build the point. But industry of follow in possibility we And at at a parts. number

PaulKoster

infrastructure. eventuality. us really have, which sense to for the Quick eventually you're the executing can breathtaking. of a capital to And which some the you'll prepping need think just nice become is is pace give build will of follow that And you it need that out up how now When course for will capital you new you're do arise? to, at more problem

KimBrady

you. thank Paul,

market we As consistent sometime been you year. going our know, communication in to this have about

well our confident raise. In we at additional to And are terms prepared, be of in with able we conversations and execute we'll that preparation, we capital feel time underwriters. the are right

Operator

Our & next question Osborne is of from Company. Cowen Jeff

JeffOsborne

year, back the Yes, - are I for put deposits lot things are just wondering if ahead? year folks the having a how the to commentary, given and get shaping for you battery have down of was to can to we confidence supply ahead. up go Do ability next

MarkRussell

Jeff, guess that until they're home suppliers Because on based a production but until that's in the question. other my commitments June. have they off are they we that up rely able facilities, which are Korea. won't probably at base, And on, and we until And Korean based great least to holding be July. firm XXXX is

to for to that the But we sell to be and So need be to that's much constraint another before give what to battery XXXX. for get allocation, 'XX. that doing for know you'll XX our best commitments to least of I'd to get situation; know cells. make won't we as you. is probably on another as on allocation days, we the without final we at allocation we that say because able the build have going build for And be we're can wait to we going quarter And everybody's can willing XX they're what sure sure, trucks we

KimBrady

XXXX Jeff are about in And of as discussions initial support down for having requesting terms we recognize cell are make dedicated that as lines. active some as we want we you potential to supplies. having XXXX you suppliers of well cell that stated, said, suppliers that the payments the with

a that be next have And evaluating discussions in here week. fact so supplier will something we that's that actively and having and are we

JeffOsborne

hear. It's to good

two now refresh I do 'XX plan for southwest? you 'XX, the is and more I place went scaled what you ambitious order have the in The hydrogen was this I TA public, say you've side, us network more stations, would now there regionally strategy to initially on over us can that terms the pivot or on guess, with or with identified more the Or from do six just years? in going still out remind five you nationwide for the five, four want electrolyzers, and to to five area looking back much next broadly an when focused, second think the you sites, a of you are three

MarkRussell

No, we the Jeff, rate stations absolutely plan that going we competitive previously. the Arizona, to California are us that committed outlined APS start the to here network allow coverage North diesel. we'll with And given border, in that area Interstate in hydrogen America That's cost schedule the in California have of that we to produce to very along with utility, which extends XX. effectively and

to we're produce in so be TA a Busch, locations than Arizona, structure, of the lot move that just brewery and hydrogen required loads launch addition to hydrogen, don't into might for the move station, going in are your that California, producing particularly make to for a stations get power over in Anheuser in here case, very we lead we're future, to into the Southern cost Arizona, two the then with dispensing and electric on be a so we more that located, in so in border and have location. to very accessible, western we'll those And that into the higher rate Because which the competitively has to public making facility, customer, where able be site in dispensing our this strategically we'll dispense Van corridors locations, out. because case that it in in where likely in hydrogen would likely do near we're but their fuel a particularly make to the part is be right going that Nuys, Arizona, we we'll hub to that nearby, California, priced hydrogen and California, locations this

So And geographic dispensing of locations hub in cost is parts the the which longer we will country. which pairs and adding the the of similar probably following we'll additional station. the theoretical, the that of of just in XX% we United with in Europe, a about we total then hydrogen city all States. have locations of now. this be hydrogen no will And of and up doing various and where difference And in to something a follow only. have we the will is across blocks better we be place, that announced with model OGE. we including the feel over locations And be Similarly then that building electricity, life than probably place mix producing ever, move to possible what same be we model, will dispensing what regions

by So that IVECO which the the way Germany that Germany. green effective facilities, start Netherlands. is hydrogen distributed going it's in from start electrolyzer actually, And way; in that when Sea it then pipeline in was Northern very consortium power. a And we onshore from with operator northern distributing dispensing in they'll that the to of the it be be also make the very cost we'll going effective throughout North pipeline hydrogen participating we're be in pipeline world cost to and is should largest sourced exciting green that very in with are the lot OGE, start competitive. hydrogen they distribution. that wind And to will be that will And most stations be and Europe should Europe. And there build

Operator

from Our next of Vertical Kaufman Jeff Research is Partners. question

JeffKaufman

very Thank you video. much. that you for Good Thank morning.

yet you of trucks guess gallon maximum also in see And any see and measuring terms per live. was measurements top I miles we least at in I efficiency so your just on realized the can ranges the trucks what until drivable to think you equivalent I testing the speed was them are? it motion how curious have on - testing, you're great far? are upgrades. Do out battery range have

MarkRussell

point mentioned as going world already of we in really I testing results, you very kilowatts done And and of XXX to Class know miles earlier, one actually this heavy they range work impressive. are to can that encouraging vehicle per battery it's that this into very translate range had Jeff, the know selling before range points we so of translate should Well, a X tell This are long-range right of But the it - a positive to truck. yet now really good that very results be battery of is chief gallon range. know going is that board, we vehicle lot the just electric far. truck they're the We've I'll a be some of the we on representation longest have into equivalent. course, there's we be

JeffKaufman

Okay, you of are commentary thank trucks in what to this think your you. And get I in answered doing commissioned. the terms

So testing no trucks actually there customers yet, correct? themselves the are

MarkRussell

correct. is That

All physical months. the few vehicles of they doing inspections. course, have were their for allowed this internal, we'd customer the were, test won't past we the a fleet customers our and And and but although own bit we at they hands of their were week, get facilities, track more for we testing testing vehicle, is little a in on

Operator

with question Chris Our from McNally Evercore ISI. is next

ChrisMcNally

questions. Thanks team. Two

little in your just of with bit agreements may more, on maybe strategy. these to high of at announcement, TA two with it a sort how the hub, how TA XX% just XX%, understand first stations the little hydrogen by the many the question next much coming. is just station the be of bit dive covered something separate much over years Jeff, are I needs look of detail the more wanted The to central two plus is level a you more answered If we

MarkRussell

the a provide, is supply target our of XXX% lease. Chris, we fuel deliver, of the to with that's we stations our it's that trucks XXX% that bundled - So,

Los is targeting Angeles. city and the Phoenix pair first So we're

And our headquarters ton we fuel on a here Los so that. at X,XXX to basis we'll has have we test in we Angeles, for fuel But which be dispensing in need need in adding now. station Phoenix, been here time Phoenix, prototype some operating

described. I've build the retail hub the facility to on in stations here the we we'll have Angeles. So retail, And we'll station that two a - have - start Phoenix will then we area, with metropolitan in border, between, we're planning in as the Los open public to out

will the fuel XXX out from around Phoenix fuel half that provide we Angeles And for and provide Los somewhere up station. So you be in the then and for also that to of the allow right from the nearest the will about geographies - that back Los next distance Angeles, other then can that to infill provide that most Angeles, And and need. course, idea you which Los of is doing enough is The miles have those synchronized And trucks that so just fuel Phoenix, Central and we it us move back Bay Los out area fuel for coverage region that as delivering and the range stations pairs fuel that the the next and trucks for deliver be thing from city we in the course. to between same thing Area country. provide will California to geography. routes we'll vehicle the other of eventually be to likely, the coverage this in Angeles, stage stuff the

KimBrady

we XX units. we about Chris, in hydrogen hydrogen that And is as locations, dispensing may Mark we where agreements. an we represents stations some in you hub indicated truck as X,XXX stations via may may transport have station will for that XXXX areas we XXX a assume And our on long where terms approximate and recall, hydrogen Other have commercial forecast locations actually term of procure site. generate there offtake stations. to equivalent, be

we're of some gives combination a But stations be hydrogen ultimately And dispensing all outside. you generate the assume delivering it so will XX at that I shouldn't level. where we ton pump think at that looking you hydrogen probably how

MarkRussell

have exact longer and is location as course. delivering the producing five of We I order themselves. if electrolyzers time about pieces. the of up sizing item process with We are there'll needs $XX earlier may the think do first asked electrolyzer we lead the as which somebody do on adjust was, of be the the the have a so to - there may stations electrolyzers local, Although for now tons in the we depending million

ChrisMcNally

about And is agreement you XXX that rule where is for of what two maybe I'm ability geographies, of to how appreciated and thinking actually I the as sort out. cities much This the agreement, could having your math Mark, foundation the partners and of I a is right? TA And stations versus have well. helpful much high very guess level the super this a other sort partners. be expand, work couple they're then

So question, bit a geographies focus the little opposed I the on more look of agreements different the a TA actual couple like or different was math that of that stations. models, as maybe my to revenue way guess different for that economics,

MarkRussell

- we're very very to have TA, absolutely never on also that's skimped where have - And stations partnering larger the they be, never they they the to they in pleased they Chris. to have a of up Understand, have places have for be coverage did, their tend to land locations, we're good true, with stations. going need

little competitors, of amount need than So that than will competitors, We stop is which larger truck land their of some location have in helpful bit they're, for lot don't the for actual a have a a land higher they the in for of us. they us in dispensing They're each the dispensing. very Usually, moving are we're high only put space two the stations, dispensing California there, hydrogen we'll the equipment in electricity will And only be way, in Angeles locations by there. enough the space. if these cost than first Los to in for be dispensing. is

moving we'll be so And the hydrogen.

stations ones compared will are be to we on inexpensive relatively and producing those dispensing and simple, so site. relatively And where

the doing potential potential been other already on partners hydrogen at lot have that in well, looking infrastructure side. be discussions partnerships for as of a time we'll were with So some we

us as that do other go things front, on we forward. You'll see

ChrisMcNally

Nice orders I in an the Great, we could was get see also to could progression. And for a California. the on super appreciate curious detail. the from then we whether maybe just seconds if total the customer or orders, order smaller particularly on an to see does BEV, specifically make it Europe, several but that major for still be accumulation a in much of think the for Europe, over could sense launch customer about launch for Europe. update

MarkRussell

vehicle tell helped up So fortunate prototypes new cell have you we where that's vehicles, they of to Busch, years, several the us a develop of have we've Chris, partner bring a helped in more as And fuel their having next quarters. they've point, vehicle that, to here the launch do We'll just us a to now couple coming couple way the for we're at in customer, very Anheuser about testing, to market. a going to for in fleet. this really excellent a the launch like been

we do be there's Tre the of that think launch to for we're take place that additional BEV just customer TTSI looking to of lot vehicle going Tre we will going and applications up of is the the just to Tre we our too. then that's one be so kind a the application; applicability dredge of up do dredge But that be which testing be the And the of announced the Tre range agreed BEVs. of to BEV, us be port operation for for of they launches. they'll BEV the there. And a agreements cells, in advantage with couple which The they and And and course days quicker battery-electric ago XX to a to and have will refueling. dredge will test a in XX fine. XX XXX fuel great runtime of take Tre And

other within can Tre still this any So are going with at have launch truck focused course of discussions range BEV, deliveries, which good in other customers for a BEV. of point. that's deliveries, potential a place And again, where Metropolitan applications know stay constraints on to regional heavy battery-electric the the we longest we're range that on you the Tre to We're of - we're of launch.

that. about So we feel really good

have in a great speaking, have Those here can only metaphorically course, customers, are kick problem. try twos, tires, the when at and test market I can without two, with when sell people them. we and I everybody-- can one week represented three fleets get to put the of question development continuing. much We, XX we're on had with this vehicles this that But know we can and As at is place the point always my mentioned, rather one. week come this launch discussions ones the test, and of point launch we'd maybe our we Because customers. customers. focused ones into or we twos But can have I

if we can we're it. do working on so And that

Operator

Our Deutsche next from question Bank. is Yu from Edison

EmmanuelRosner

Rosner. Emmanuel is that Hey,

pricing also Intent? drill you First kind BEV versus that, range specific to also of for what orders? topic Could is of maybe mix the the based to cover more trucks into this Are would on these XXX want transportation performance expect? And firm then order is total down of operational - order of FECV? to convert on Letter And or kind of the plans commitments. based what you sort of the

MarkRussell

and in Long to requires four fuel the every at full Angeles cell Edison, Beach anticipated going them running the get are shifts and be least. operations two battery hours, to trucks, Sure, at Los split, the XX XX:XX, XX split is TTSI And XX trucks.

very the longer. actually little trucks then turn, you quickly. and Typically, have these shifts, the a they between So bit can truck two longer they offline quick turn a have a one turn where

that first So because in call minutes, in be up to and doesn't still can gets the can That's the able the that because the warm, next fuel is we is fuel the that have that's not you a truck, cell and for reason in Change diesel. seat allow driver, Quick a do for timeframe XX refueling the able the same the which XX with the huge about fill as you charge, second be that we quick, seat, first driver do fill between hot truck, is really fuel same shift, to trucks, while to you - battery diesel a can to a time can be is accomplished that the which to cell they quickly.

a suitable. the there typically, board. for range it's so the works don't normally, long kilowatts And to and exceeding. certainly much XX lot their a range for so really that not they're cell the in range, is order of XX a a the why batteries. battery longest truck XXX fuel But you just will be at fuel exceed Tre of out need And they on that's fine that use cell from range need you not They you cases get truck BEV; usually but to range, skewed dredge the not going operation runtime,

recharge minutes our So Right time. the now using state to go kilowatts. for ideal life challenge of for recharging XX recommended which units the a at in is not testing. that's is about fastest And us recharge charge XXX lowest our takes that problem. this recharge are target the XX%, we're battery The for to from point

a longer but recharge on shift. second little a for change, can after the longer seats that's need term shift the than they they bit So hot

really it's the one as with So great which of in for to with biggest ports dredge stuff committed one for greening Southern is fleet. solve really to the challenge because on California out working TTSI them carbon And working we're know figure in their you us. there. They're their the to partner this problems how is emissions be of up Southern they we - excited other operations, and in for California, world busiest to

KimBrady

these we trucks trucks. our converting deliver terms timing And as do is in a also have pricing favorable than are what sometime have of more we for hydrogen cell to your commitment we battery with terms helping subsidies out test on into TTSI. of terms electric model. vehicles Edison as of working And question them well government trucks fuel in in of this year into order, with procuring next firm

EmmanuelRosner

insightful. Understood, that's and really helpful

Just one question. last

get sense to those sort exactly or who be be initial there after we profile know XQ announcement to who will you're the communicated are? days, who - still for about deliveries, those truck some to of trying be will could or Just customers customer when a the they will XX maybe XXX aiming expect

MarkRussell

Sure.

I for before, who be we able now. two, right to we'd progress And obviously, to sure. announce customers hope to And be this vein, launch, will some another TTSI there'll really as to working getting like units. be we're them them front mentioned or in We'll we've one, launch would made on that to partner on that working that be week. early with similar We've and they one in good able So we soon. add those with is be

Operator

Joseph next Spak Our Capital is RBC from Markets. question of

JosephSpak

case? for much. partner little them talk you a customer And how Is them I end that prototypes announcement. has the year. about talked for required the past phase highlighted that months? know as the this a bit key TA relationship of Busch And progressed and even and to get two about know just the Thank this over you're using you that think Anheuser Can couple very maybe I hydrogen of some still on you more by is you've against target?

MarkRussell

Joseph.

cutting goal reductions. So them was for of edge objective includes operations them commitments. be this, that shared the part a imbeds on they, And the to we've worldwide XXXX and as actual with for of beginning, hit that's by to strong some their emissions from for corporate very targets them

purpose corporate a targeting we're really working cell at commitment, over as point. share Louis, this were over beer vehicles year of corporate fuel last, track for and ago. goal prototype run pilot commitment, And the And we hauling able being a do do end have for so a year that are that on the shop. on we're underway made committed. did regular very you just actually with to two strong we're is the we that we're a deliveries So to using a of XXXX right, Anheuser The flagship basis know, for, in Busch, by brewing on that demo diligently. that prototype. that And very looking St. ago, that laudable from kind We partner

JosephSpak

something But thought supposed was remarks goal phase clarify, Okay. about prepared Coolidge could about wondering I to capacity thought I in one. was was misheard. the you in Xk here? today I be talking you the points change? you that X,XXX. different thought maybe Did if I said along Are I

KimBrady

And capacity to XXXX, two, you accomplished phase we be be approximately will Joe, will end And in by capacity when three that XXXX. the about that one, are start out then And something of facility end And Coolidge building of to we start units. our then that of beginning facility that shifts. phase actually and So, X,XXX. running XXXX, beginning two and phases. be end increase believe as when capacity of likely in we we around complete then XX,XXX phase XXXX, by do the know, XX,XXX will of X,XXX units of the beginning by of XXXX, will

in to have year, I delay to battery-electric think to referring decided may is of terms the that be shared of will the phase what units. some so terms and in volume And last commitment to capacity, of of phase capacity the we one we something two, what you have you next committed plenty X,XXX we as year have market, know, for truck we

JosephSpak

or so realized one last the head a time. during Nikola cell I there like team. I I that fuel Okay, But all have a sense or was for the employees report maybe left for development the of don't me. know a ago come and month advantage investors of and about go think great

So and an there team? can you that provide just on leadership update

MarkRussell

joined was don't he that's has Absolutely, dispensing is, he the a what and fueling to do. that understand company employee loves unexpected, that transition way, staying space not and in by helped the start

but capable strong than and than missing previously. on here, That We in are leadership employee that particular ever this that people point, At a work we've it space great a beat team so more were not is capacity did with more going have forward they we team that absolutely bigger resources, really was had. front. and while much

able the As some on work there. team, the that do around what impressed very working the other with we've that team. We've with, got that customers, from who with world to best are inevitably people the people we're people been of

Operator

question Securities. Our is Shlisky Michael from of next Collier

MichaelShlisky

be you are deal can estate? what going take out part getting good tell what first of going as little be you TravelCenters. wondering just sell I - a And rent could to to the TravelCenters us us about for the tell. if cut to Hey, about what's from to gives they wanted of paying their arrangement. kind was real the the ask Are hydrogen, sense of morning, a it they bit them I might to to you of in use

KimBrady

it just terms as recognize to revenue now will anticipated in station, we means and Right from those when transport are on will it. still economics, which we XX:XX working hub, profit, we know, is and dispensing it hydrogen question. of Great you some we will dispensing that But this details. many, foundation, so of provide share this that our comes at

production our portion at of significant the we side. So expected capture on the to facility margin

MarkRussell

be as split be So between that a true capital a from to the the partnership, take us. requirement. we then the there'll station on transfer approach hydrogen, infrastructure also And price Nikola margin be that's and over the for will

MichaelShlisky

looking vehicles? got to first, roughly electric you XX have I about with you at other of partnerships or about ask, knowing is technicians RIGXXX, at how And maybe technicians, networks train secondly country to takes availability months communicated guess this Okay, give there? their with UTI the trained then it. they elsewhere somebody service I to at out want dealership us secondly, new in it type And And that to sense Lincoln, a schools can the time?

MarkRussell

Mike. great No, question,

your first, - are the at benefits here America; adding Europe, have the So the answer the way. we'll that's And that. intend great to looking by the of coverage in of in to North we doing same absolutely be RIGXXX last to continental one We dealerships part agreement.

Coast for we so in Southern looking coast America. to coast and support North and And Europe, sales to coast through services to our North were dealers.

to are and they're service both dealers and sales their provide that the commitment what So providing is making support.

service they're technicians technician with the So is on done then where they're adding - training salespeople, doing service and fronts us. training both cooperative

service alongside and here have be and there'll techs and this corporate own us. We group training dealer be have our techs will existing at their support they

well, in dealers them the provide in flooring so inventory. and hire delivery some and they dealers be will train cases a from a will also sales to don't be we'll immediate that display have And and for commitment adding and with help and to for it They So made are have demo. have to commitment training then future representation. be making techs vehicles also vehicles for going cooperate

actually supported and are fulfill for that of customer the and they and of us a the they get part be sold So vehicles us distributed to purpose services going launch launching. helping

Operator

is question next Daniel with Our Securities. Wedbush Ives from

DanielIves

Yes, thanks.

point in constraint really supply clear just to about from Just demand I of you you the to goals? XX QX, those XXX. is one XXXX. a the it only get some the just so constraints? chip And pure Is Could perspective, just terms side. orders, in just especially talk when rather question about than Thanks. whether on it's of this hitting supply be going that

MarkRussell

Daniel, going all of We but question. And XX that's supplier had - my already enough cells, is a range, we not to get cells more to that answer we mentioned, we as we are going yes. to constrained XXX and great we're constrained. be to get It's we need parts could more. do if to the commitment have do from that now certainly the going to by in

do it look parts And gone and possible more sticks We out we to number. of a prominent course. call of gets the get have more. side would carrots doing last recently incentives, drop just the other that are one these to on understand. trying carrot the has at to they any the will are their in number we're of compelling. carrot model, that states follow weeks in looking of that down those you want incentive other was the all the below that are demand there our increase definitely sure to California one, there at but at carrots that an to follow more and not But the best could blue And more, and We chips here, us for incentive I we vehicles doesn't combination to people If more And time, move. the the announced the remember incentives things being make the the of looking because way, terms hydrogen, a which of capture of have that incentives. increase where scheme, in California just sticks people carbon couple increasing are by for constraints

the sticks. the On got you've other side,

even jurisdictions. us. we who people see off bans, sale anybody on that's then And and worldwide. got within passing bans don't operation are And specific backing You've

see we are And being at that jurisdictions point. of haven't We month added seen number much back every people, doing anybody pretty to that yet off. the this

years; we're, encourage to going it's of reasons going of demand is not erstwhile the welcome go demand is which we replace demand. regulatory this competition, a as of in a be of the matter one We're going our of all the the nice. to requirement law. have now to figure it's out and not the many period In So it's to how right down fleet. for next meet And industry, us matter why the best to is take efforts problem this be that cases, completely combustion have not going would we or to to of internal to a

at is to not time. from the the here. don't down this incentives would closing are to further it down. So between and I the Russell no remarks. going goes floor how to the I questions demand requirements and turn see There for the go back Mark mandates, like

Mark Russell

us. everybody quarter. you to interested in next appreciate morning and support. we'll Thanks. following your Nikola being here grateful We for We're being And to this talk

Operator

This you. concludes today's Thank conference.

You may disconnect your a great participation. at lines Thank time. your this for you Have day.

Britton Worthen	Chief Legal Officer and Secretary
Mark Russell	Chief Executive Officer
Kim Brady	Chief Financial Officer
Paul Koster	JP Morgan
Jeff Osborne	Cowen & Company
Jeff Kaufman	Vertical Research Partners
Chris McNally	Evercore ISI
Emmanuel Rosner	Deutsche Bank
Joseph Spak	RBC Capital Markets
Michael Shlisky	Collier Securities
Daniel Ives	Wedbush Securities

Nikola (NKLA) 7 May 212021 Q1 Earnings call transcript