NKLA - Earnings call transcript Q3 2021

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Operator

Good morning, and welcome to Nikola Corporation's Third Quarter 2021 Earnings Call. [Operator Instructions]. We begin today's call with a short video presentation followed by management's prepared remarks. [Operator Instructions].

As a reminder, this conference is being recorded.

the begin now will video presentation. We you. Thank is Officer, Britton pleasure now to Legal Chief Nikola's introduce Morgan. It my Thank you, Britton.

You may begin.

Britton Worthen

Mark With Thank you, third today of call. Corporation's Kim Brady, to Welcome Executive Chief is Nikola; me Financial and and good quarter morning XXXX everyone. Russell, Officer Chief Officer. Nikola earnings

The for share Pacific full views this for quarter presentation XXXX certain the the the call, within the the Time release Company's X presentation the accompanying XXXX environment and release Federal a.m. business press outlook quarter of December today's XXXX. the financial During forward-looking distributed statements our and Securities with our along Today's we earlier year September includes slides can on little and be will Q&A of found website, a Section on results our meaning results detailing today's The our Relations laws. Investor financial was call. morning. and after

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

quarterly actual about Mark. statements. the I our Securities annual put be filings now press to refer report on filed With Exchange results cautioned with information subsequent should forward-looking with may over the risk XX-K statements, of to call will reliance Form section report today, our the Readers company's on that, undue factors we materially to factors hand more in as forward-looking SEC. XX-Q and Commission, addition that the issued to the differ from For not release to earnings cause please the well and as Form

Mark Russell

Thanks, welcome the to call. Britton, and

quarter, today. contingency that to reserve Before potential I getting by to $XXX the in related the settlement we of start disclosed loss million addressing want the the details into SEC

the on time. with with have amount. we of time this their in penalty is we've settlement in we which regarding It now know, horizon, engaged been SEC As investigation. our them for We the discussions civil at this cooperation the reflects potential best estimate you that a reserved why believe some have

paid X-year looking We bringing with over this will building our period. chapter installments settlement focusing determination in We're to a this forward with on be expect potential to and to future. it renewed close

questions settlement. Additionally, investigations. the that reimbursement we actions of you from costs But Milton damages at subject that are All right. seek that to Mr. I I've for government and arising just all point. what potential this from about the the can likely have told understand intend you'll say the we is

Let's through this go we done quarter. what got

delivered Nikola the Let's dealers to in in our Europe has number on yet and trucks October the hauling pre-series the be public These for in roads now XX accumulation on on and The units customers and dealers in start accumulation, the BEV to mileage Coolidge. trucks been into huge began moving pre-series and with focus durability here Arizona public including will BEV that Tre mileage a continuing be since loads. customers of and Nikola testing testing will customer our roads, Tre XXth. path to the including we in and quarter, delivering Ulm in strides XX and trucks Earlier year. this building commercialization and U.S., trucks

release, bar board cell and the that to durability for thousands power prepared optimize the least of cereal in the kilowatt with far. for start next year. XXXX. back which XX And are and have Later, X period overall the the structure testing in storage these to is otherwise they're license These and since customers FCEVs a beta and undergoing of the at fuel prove the net quite trials then, after of the components modules fuel agreement preparation will FCEV. get XX-week end locations as several we cell the mature of have phase kilos public carryover our real in release which to thousands California in alphas, testing space road half January. Europe in Tre actually real trucks of also efficiency though or in will in electric of we'll in the to cab and Coolidge the will the much in fuel difference since so alphas miles X referred road production the fuel we the One Bosch. Coolidge this these of partner, Ulm module with series by BEV. in validation miles modification, which we milestones saddle the vehicle in alpha of of XX.X with world-class and powertrain. looking on second for our and the the fall many position. be move system, various Even with testing year, XXX FCEV and at start we'll United The road States hydrogen built the will will pack tanks they'll kilos with the capacity between version tens series X the from hours or as integrated on scheduled in road XXX hundreds forward X hit development of trucks. accordance We getting cell this currently offers the and between By chassis with of fuel Tre accumulated in very power slight customer fuel heavy-duty of directly be longtime cell road and such continue have track We're the our it for assembling We've data trucks

building mark facility. the Phase first that XX,XXX FCEVs Moving of year, done will will also Nikola and the move total it line point, the manufacturing We've the the we units trucks which will which on XXXX. II, of matter of to directly assembling quarter XX,XXX of nameplate from completed Phase Phase and in time the on time, same and to are out capable X. latest should at facility Bosch the at be in should next we'll on of BEVs Tre building work of our a be assembly what to the Coolidge. up expansion our And towards end fuel-cell there, be up facility. area, call we're then And completed X.X And be and same early Coolidge in building modules. in of capacity ramping over That

option as is the a BEV venture building Next, the expand capacity to the per and joint units mentioned of FCEVs up we're to up year inauguration shifts. Nikola Germany. complete. in the Eurozone as we're line facility X,XXX Tre currently of XX,XXX ramps year And I we trucks. on vehicles X previously, production The our And BEVs manufacturing demand facility excited up. pre-series Ulm, per XX to have about The for very facility has

In Hamburg made up some addition, including deliver announced between we MOU which the customer Port joint last over to opening we IVECO, Nikola important few Authority at months, and Nikola a with the to XX hydrogen Ulm announcements, and The with to lease bundled PGT BEVs XXXX, FCEV, LOI fuel of and Trucking FCEVs. PGT. XXX service Nikola in an includes Tre a maintenance Tre Nikola leases Tre a include support the that through collaboration the

Power to our BEVs with Tri-Eagle our dealers. one Ring network lease XX agreement announced with order through The dealer Tre Nikola from first sales of Corporation, truck the

We dealer role integral continue network to expect customers. products play emissions the zero to our in Nikola an to delivering

Group throughout charging sales provide the in areas Eastern of in In the region. network. case, the Ring our additions provide meet reliability Pennsylvania and New providing We in and service, select infrastructure importance the trucks for us the of and our Alta on a service with Southern California. to footprint, Quinn progress is customers, trucks, strong vehicles service agreements are expansion sales Central and in their New the of We'll into to utmost including plan England New to needs Jersey keep made York, and enter Power, coverage the Alta for addition will company announced provide this coverage and service in Company. Up as to customers. continue item in network which Equipment make mission-critical deliver to to their announcements begin expand provide road. to we them Equipment our Quinn will a also service and as Tri-Eagle. will time we We've and sales Northeast, and parts the we and and

hydrogen Next, let's partnerships update OPAL TC the made announcements with Energy. regarding we and recent our refueling

the require build The FCEVs utilize will companies. as and fueling ultimately, fuel the be will value would the logistics of as to and contributions hydrogen to system infrastructure is. and the provide large others chain We complex support development our stations that hydrogen it. wish fossil to will And that eventually will and who that fueling ecosystem and work current many continue supply, have

be world-class to the together Our partners we to resources have scale strategy growing bring need to who us expertise represented help infrastructure demands and Nikola to serve the rapidly FCEVs. by continues the

by addition expertise us into put will their production blocks months, transmission carbon help Energy, these Just and leveraging we and TC past hubs, X X capital building low projects. assets infrastructure and with place these major desire deploy of in in to their storage the hydrogen develop who scalable large-scale

including facilities future. fence. with infrastructure also OPAL adding We experience near the the their a building collaboration in-depth partners, suppliers, in carbon anticipate station expect with we major to which equipment to fueling partnership other We leverage created customer low and behind announce

dispensing refueling in we X is agreement. generation to stations; of announced to our WVR, hub-and-spoke a in production on-site which we first hydrogen the in Last investment gas we've Midwest, locations; two, XX us WVR the agreements. option will quarter, solutions day hydrogen critical partnership per believe offtake centralized The hydrogen and three, As base trucking up tons come one, allows major said, forms: with offtake geography. offtake our

partnerships have our hub Energy production you hydrogen we ecosystem refueling We'll as of hydrogen first With development our the update additional on go forward. TC to announcement, and the continue we partnership.

of supply from with battery in cell LG XXXX supply supply some have battery news a on through agreement XXXX. agreement provide This will for also form our Energy Solutions supply our additional long-term We chain trucks for positive the cells.

to confident All about milestones the market. zero to commitments to bringing We're to Finally, pleased the we're right. emissions meet to with the future. and continued Kim quarter, to recap, our our products numbers. review our the and important we our excited and Over results, on in hit way

Kim Brady

good everyone. and Mark, morning, Thanks,

provide view the second Before the around issuance flexibility us up with Tumim allows I equity to would stock. timing. over shares, on results, leverage to in our a common to while toolkit which September, our Capital in million addition color executed liquidity Stone agreement like us line going QX $XXX to purchase as the some Nikola considerable markets our of to capital giving We valuable also issue

the $XX.X monitor financing we to capital continue To resulting and facility principal issued our enlarged the markets as the date, source utilize which purchase broader for Tumim million of agreement, under notices in to obligation approximately X no purchase net Nikola. first in proceeds. has have We view to Nikola

revaluation million Moving totaled negative million. from $X.X EBITDA five, on diluted in a non-GAAP loss net of the $X.X $X.X Basic contingency $X.XX $X.XX. quarter, Basic regulatory and QX advisory and September $XXX million for gain connection third quarter other short to three the net was our SEC amortization; one, share and $XX other the the service was $XX fees million. two the include third in potential and seller excludes, ones share legal, liabilities. net which loss and results. liabilities. legal share In related stock-based million reserve per on net diluted matters and was settlement, per excludes article depreciation Four, per revaluation the And incurred professional among per derivative the private non-GAAP reserve and SEC potential items, from loss legal the on million matters, the gain was investigation, loss of EBITDA for and regulatory contingency million bonds adjusted derivative stock-based loss settlement compensation, $X.XX. net and XXXX. in share loss to $XXX.X loss for with and basis, Non-GAAP to compensation, Adjusted in

including contingency compensation developing, in million, research building, and loss expense. in SG&A quarter's trucks. legal costs SEC regulatory third incurred million of costs. fuel-cell R&D in Nikola Tre the expenses $XX.X compensation settlement, BEV approximately million were and $XX.X and expenses mainly and development validating million $XXX.X $X.X consists and stock-based including potential testing in were $X.X reserved expenses The million, $XXX million stock-based expense for

spread million be $XXX contemplated $XXX the expected years, as accrued the of While SG&A we payment million to is over this expense an quarter. entire X

GAAP As unfavorable a we to result, QX. guidance on a the basis, were expense for

within potential investigation, settlement reserve we the $XXX GAAP the a for were loss to quarter. However, excluding for the the million expense SEC given contingency guidance

$XXX equivalents. the balance with of the to ended and Turning sheet. cash quarter cash million We third

In addition, roughly liquidity with equity liquidity the through as total of Tumim, us available billion end. also X of $XXX.X million our have of we with lines $X.X approximately providing quarter's

Our related to year-to-date of comprised construction capital expenditures $XXX.X tooling Coolidge and million production. are greenfield the supplier and equipment facility, manufacturing of Tre totaled our purchases BEV

$XX shares for quarter an million the diluted, million. both We additional with also average approximately ended million We XXX.X in third invested XXX.X Weighted the shares were outstanding. and quarter about basic WVR.

Moving on pre-series dealers to Tre guidance. our to freight QX up customers delivering to goal to XXXX for public and roads. remain committed demos hauling We XX to for BEV on our trucks of

These capitalize In impact balance we fourth could $XX.X chain QX. of stock-based Tre estimated the and to ranges Nikola million, is of impacting $XX in QX plan million our million to XXX% $XXX $XX is have validation may on in be vehicles of considered production-ready previously that $XXX we roughly includes Estimated we constraints, may expense trucks trucks building insulated as case, million, mentioned, not million global production BEV for includes quarter from However, compensation, million components ongoing not parts $XX.X stock-based expense SG&A and pre-series in subsequent compensation. range of are approximately that not sheet. supply R&D testing to which salable. these that semiconductor completing which the the the have from

settlement, reserved we $XXX the fiscal full accrued QX the loss adjusting is million Due loss in expense change range Now $XXX are to the total year solely SEC to $XXX operating expense for our million XXXX potential to year to million. $XXX operating contingency. in guidance. due The contingency million to accruing range GAAP

have the SG&A. to also We some reallocated budgets of from R&D

million, budget of Our $XXX in of is including now stock-based million range $XX compensation. the million to updated R&D $XXX

contingency $XXX range SEC Our updated potential to million the a settlement. of including SG&A million, reserved budget and $XXX $XXX million is of loss compensation now million in $XXX stock-based for

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

$XXX shares of to no line investment Our fuel year-end. the December million to at estimated cash infrastructure credit. additional issue will on XXX.X anticipated company tooling, the to not total and hydrogen million, plans manufacturing equipment includes cell electric the plant roughly to stock is and notices estimated to Tumim $XXX balance do Tumim, plus we vehicle hand million and distributions purchase If $XXX Coolidge about $XXX average XXXX capital. million of million. the approximately additional option for be XX, shares This and at expected XXXX remaining of capital our include manufacturing equipment, and $XXX including capital end engineering cash raised, outstanding be million million. of The stock full liquidity Phase equity issued exercises, We total weighted XXX associated supplier I is Stone of estimate notices unit approximately year ending restricted employee purchase the

By having to employees employees, end XXX Our accepted we as of XXX to X,XXX of offers XXX engineering approximately is XXX XXX XX employees. employees. XXX anticipate and XXXX, to of the of headcount, corporate and manufacturing October operations inclusive and comprised

We to rapidly energy build manufacturing engineering, as are growing continue teams. we our and

the the to As milestones recap dispensing. across made Nikola's previously Milestone hydrogen for chains, want distribution have regarding achieving is several production, I pre-revenue a the monitor the including hold over announcements value hydrogen progress and to way certain being past refueling milestones. for achieved months. investors we hydrogen infrastructure, best mentioned, us one, partnership have capable company, we to critical X

customer XX could existing announced On or hydrogen TC with fuel April in On hydrogen California. the and May LOI an XX, XXX Energy trucks schedule BEVs. us to we anticipate locations leverage XXXX. where to existing we and an up Arizona, with partnership potentially We deliver investment option On to dispensing with is at existing stations Milestone stations XX capital comprises to have TC's in leverage October which construct, collaboration TTSI, strategic partnership LOI we on hydrogen XX hydrogen up On XX, offtake to and Milestone for we hubs through hydrogen we Tre Valley an our power speed us XX co-development day secured announced we the X, clean we FCEVs. the allow BEVs pipelines, XXX OPAL co-marketing announced allowing per XX, XX, Nikola announced and at the Xth, -- Tre And X, in build XX of price with behind rate Ring the for with assets, delivery which of operate MOU an diesel. co-develop, of geography. large-scale infrastructure to announced hydrogen Nikola additional an initially XXnd, this and of we Hamburg refueling Tri-Eagle of will hydrogen announced Travel critical our and own raise. Tre cost we Power. increase authority And XX of produced announcement. and Nikola on with APS Port with October on the Resources production the July below with to Trucking plan PGT we September X our production Southern in October produce from collaborate a September order tons to XXnd, hubs. signed TA lower will trucking which electricity Wabash fence. Center BEVs On On TA America, announced storage the through

the to SEC through ample via our X entered a X purchase Tumim. with agreements fund business investigation. to liquidity into have our resolution We equity secured is XXXX Milestone

contingent our to we We a zero-emission in better is SEC market. the forward months. believe We position company the now tested have and customers being public vehicles Tre than to products ever to the on on the commissioner's horizon, delivering coming look bring BEVs succeed to approval. roads as We the a have potential settlement dealers and on

dealers; additional As share all infrastructure track. in you on-site other deliver Tre and/or four, continue centralized additional on announce to first partners. monitor hydrogen QX, gases facility X, station; use freight; public BEVs and roads pre-series Nikola hydrogen investors hub progress fleet in should One, milestones, commercial we land our purchase hydrogen announce believe X, customer ecosystem and testing customers production for for

the date, cycle into produced kilogram value. per emissions Facilities up facility it the some we as current anticipate high-level create tax like This determined ultimate drafted. producing HX XX trillion concludes could start significant our anticipated greenhouse potential shareholder percentage. remain percentage bill. If Before credit. on-site stations. substantial for HX production production HX. at producing and hydrogen impact our percentage is hydrogen reduction is be It clean proposed credit to provide significantly regarding the hydrogen production reconciliation the pass, for and credit compared includes the could on would language draft we tax tax rate lower will credit business hubs in placed prepared eligible believe conclude, The production years, the potentially we hydrogen on tax will Nikola. remarks. we applicable new would cost to service. preliminary in The hydrogen credit take for base energy color impact we in our reconciliation is credits $X.XX by be tax effect as the $X to The the will as of to hydrogen generation whether question of gas SMR life The facilities. applicable bill qualified production receive XXXX by centralized is this for The multiplied production, clean to production calls tax The the beginning for gas

for the Operator? open line now will We questions.

Operator

[Operator Instructions].

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

Jeffrey Kauffman

morning good much, very you Thank everybody.

size customers been have to where this to together that this at in where X of Could look to in relative tie next platform many today, terms kind it map to look and busy. coverage? say, guys the where we years stands want be, the of still geographic how And You where dealership if you do to of you fill do need you terms point? in your be, locations? X in at And

Mark Russell

we've with area. question. their first sales our really Jeff. through signed We up we're And to as ability the up dealer, as just Thanks, the Ring charging the and with folks as be dealership a working providing We're service Great you our premier each relationship. support dealers customers Tri-Eagle, signed signed geographies one we and Tri-Eagle up of case. heard, pleased in we've in far customer of so established Power support where in of we'll infrastructure service the well that that in terms think and

critical So that on the we've pretty gaps point we're working we at in The of got a have, geographies. good this coverage still most actively.

the coast-to-coast So period, geographic full talking X-year you're and United of in have coverage expect Canada. timeframe into States the about, we we'll

to have with to geography to that. we're we'll be And we're a looking of we're able uncovered by that. And inside dealer. So certainly do able do that no being confident pretty

a does additional got announcements few which United point. further this place, States at the add in on hear dealers good Continental chunk of You'll we've into a what will cover that already

Jeffrey Kauffman

And you guess, I partners Where where at the a to say, you'll it's today, critical commercially? But of hydrogen the question if the if coming trucks add out the with be Southwest. look for areas would Midwest, fuel-cell little your early. start you ask need map I same I the production are I distribution. know want when to Okay.

Mark Russell

well. Again, in are you and as a the have into going the serve others we'll in for geographies. And infrastructure across that hubs fuel have corridors Midwest. major on a Midwest as near we you'll which WVR first Southwest in, infrastructure hub space. the with California be to continent. have add to whole the other hydrogen with But with hub the we'll And working transportation the the the project, here we cover also critical see border. And then, us will the for and coverage in -- TC the Energy the correct that coast-to-coast is Southwest along Again,

So in and them through section. Northwest Northeast, Southeast, all

Kim Brady

years that respect respect quite targeted, Jeff, will are together the as puzzles with the to and for with putting we on And an ecosystem. to and And always have order we And we especially X roll-out production focused But TC X distribution be very hydrogen stated dispensing. much to we first believe, to we have hub. we sequence and socialized of location be Energy. Mark our how Arizona, talked roll-out. as we already be will in about, ideal California first this with will

Jeffrey Kauffman

Okay, great.

Mark Russell

Thanks, Jeff.

Operator

Jeff Our next is question from Cowen. of Osborne

Jeffrey Osborne

then, questions the there Two testing on gigawatt basis, And complete process. you that One, if hours year on one. put next But you you then, really of be Can given perspective X or into you over anything do could was scope wondering as the year? that salable. 'XX for XX that an not flip it validation question especially question was into end. production? you to might going the to just through be you what's trucks my some can I sales. homolgation it anticipate What's the And strategy said left? will the noticed Is I is in the relates LG just is and well? next So walk on know Agreement. as annual it pack of calendar around time I share was starts phase said or just

Kim Brady

want don't terms. sales from of details respect go Great the the to LG, the With into questions, we Jeff. to

know, confidential our just you ways. in As some

something give that product substantial is that However, will what lock-in is us been we have to that volume. able

single we have and not We are sure threaded. in that we ourselves making are that

sure well at But we're course, pack and XXXX than one XXXX. supplier looking sufficient we X of volume make suppliers. more more than address just to to that as as we're trying cell So have

allocated we idea We in we though, out market they believe, with pre is come what perhaps XXXX. as us plant. tight available we will a believe that Coolidge cells can building you, had the we or XXXX than great there still very cell have for allocation for relationship have Team if know, better you more at As also And our to requested to ceremony a is XXXX. will tell are be we What signing up them. XXXX. have LG additional We from in

sufficient we to that locked so, ensure very are volume And cell battery working we hard have in.

Jeffrey Osborne

my homologation question? And

Kim Brady

-- of working January. the plan we hard, are commissioning, where into some talked What validation validation of there certain early may will of But to when With in that could that we to accomplish respect quite with testing to about until delays is you Homologation, are any gets possible and be as XXXX. in delayed. the respect chip-sets, that any We We validation know, that arrive it as substantial spill portion display are some validation not is components there of such December. beginning will not sample the XXXX. means testing have production time

Mark Russell

think And I you Mark. Jeff, -- this is

control about the asked also production, more we you which than think I have we pack a over question do cell supply-chain.

cells agreements between sources feel major Although we X have now with. of now we're the of we in X a that position with suppliers much better supply

production. have over So we're from we the module And design we control that and more The is do using have Romeo. more at ours pack point this pack control is design get of over If the a the the that about cells, confident packs. time, pretty little can supply part over and that bit we that. get more comfortable we're we'll chain feel

to homologation turning So the question.

test now mode miles being their of we public putting road And of and Tre is the BEV. the the paces. in vehicles miles all through of on hours. And are are put their and planning hours We through a having for that matter --

able the and is part of are as a of now we're the it a Kim work how Of is -- production to regular to short this first make the hours entire miles. as of of production which spill able the year. function point, but year, track of miles, can road getting matter much quarter. process. think of We And trucks essential a this get course, pretty for in of still to function we've at of getting the this required will in we done calendar certainly many many we'll getting condition. public XXXX. trying be it's hours But number the supply how parts And We're start chain complete, series been says, this which get we to the end into bulk calendar at we

Operator

from Our comes next Shlisky Davidson. question of Mike D.A.

Michael Shlisky

I couple there. on last of to follow-up questions want the just

stop, you If have in salable, -- made where non-salable the wait the to get kind of purposes. first all demo there the they make? use? trucks where marketing can do what until point to non-salable everyone's making not there for And you've XX you're are you quarter, point really -- got able everyone's produced is on-road got if truck your the this for their more need a you kind have you'll trucks start If trucks to first quarter of a full is available unit, ability you have you

Kim Brady

the they QX salable, be they they the suggesting that not can first production When and not they all They address say retrofitted me be XXXX. will what components. may accomplished, Let final in is we're extent have become can we are to salable part. the

Michael Shlisky

Class not from can ICE the in All behind follow-up type and inquiries, or where trying in kind market who a electric. gotten truck general, is one. they us tools capitalize get able offline whether other a BEV find to or just available it's I any to right. that Tre on you truck trying customers tight to you've going been take be Okay. of guess themselves kind get any also you've might brands convince any that to just how to available? battery I new whether any be XXXX them to can A customer not ask, And curious that heard get. a inquiries can from the may in any been have additional of past, on it's are want I very that I'm how

Mark Russell

Mike, would somebody if we also us trucks it's trucks, the to if never come first especially your out -- question, the think blue, wants I in to who generally. that short it absolutely any more related want customer is there going terms XX To -- us we for otherwise -- yes. does Yes, a of that trucks, get assistance have which least you or Everybody And back to contacted test in I partnership. vehicles. interest that is to with could? looking very tight. or as of volume not scope makes trial calls of make now at for answer than of the We are trucks, said, not recent in the is months they're they before, line, something And unless not who's who's that that the of then, anybody can extent talked zero-emission

issue, which conversations can into we world. doing on lot some much at that sure the customers parts this to some have all we the going get that's the help we hands. XX/X pretty of through need, make get why the continue a we imperative that supply respects geographies. So in a to point so we're so of build it's work we with chain that And and lot to some customer launch go trucks need We're getting trucks homologation, to the we to in dealer around

local getting U.S. going geographic faster a Port up local the come far, because they're deliver we who's trucks to of the one example, the get in we European first. take with For which have getting spec, more homologation, U.S. because Europe to exception on them trucks That's we're can geographic XX in to up so to a exception Hamburg. of Hamburg, we so there the spec customer them completed quickly, that they're Port can first, those

-- get out change world we're We're trucks and forever. transportation fast to -- we're a a make because it's zero-emission them that as to go can. We're So to more can commercial temporary to there market as as it fast get make not the we can going we address. to out going sustainable do as trying just many for market and as trucks shortage we to as trying

Kim Brady

more insight Michael, well discussions well as the of signed, just sales always final that goes bit with And as terms about LOI into are there LOI announcements. And side. about and which When in announce parties then there's a in But signed funnel, talk a number we final discussions as ongoing as already of demand timing discussed. discussions. we think eventually when we of terms given we LOI

So tuned. stay

Operator

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

Joseph Spak

today. some some in of capacity the language the had on I questions release

capacity I early year II XX,XXX run-rate by that's So year-end, just that's sort X by will a Phase unchanged. want confirm on the of But capacity your X,XXX then, full 'XX. to what actual talking not by you're about shifts, be. also,

little you Phase that I think 'XX. year-end also II, which then 'XX for but a and was by before was was Phase III, the XXK earlier it bit had a year-end XX by

there's what's was on? help the like expansion. capacity just us going pieces I wondering understand seems could you if on going it So with some And moving

Mark Russell

Absolutely.

ready for on [Technical operational, what Coolidge chain. go. go September. what thing the The is to to can as be nameplate up it Germany is with remember first for the are both limit to And parts can them. ready is had schedule. can and the And we The where back are drawing depends parts the line. get. can hemispheres. is they in of get is you're in they the spike in they're supply to in total -- they're Coolidge doing in true, is ramp-up Joe, phase that the many facilities that's they to ceremony and -- Ulm number, Ulm, a then, facility -- with opening going And as on We So doing everything And the Difficulty]. important they

Joseph Spak

because was X.X as and everything think like goal wondering of has my I the touched you XXXX. know, lot that about how sort haven't Okay. of that could we're question, a 'XX, of us if now planning which you since you you're I'm Maybe really that to that's hundred approaching a to since guiderails segue how is your or 'XX realistic sure 'XX. just of And give target trucks, good for the And given mentioned? all some then. just we April second changed is out

Kim Brady

more detail our be share to volume earnings think able XXXX you will we ramp. And respect in to And we'll better much give with visibility production point, and the at that next call. I

Mark Russell

pretty very quarter. specificity same more the give there, every in in your out abate. is situation, situation as ours next begin much But the much things it's in fluid what -- terms of going as will good as to is got OEM we've and when of guess we're And this you And terms affects we'll everybody.

Operator

is Dutton question of Evercore Douglas next ISI. from Our

Douglas Dutton

talked externally Just What to chain at issues there. Joseph's or Just the a production than the I there looking rates other looking sort faster chain that internal that are guess, just of and is color that. supply on slower for on that it internally factors? some of you the or sort question the about? mean, follow-up supply we outside are really could purely are of factors, allow I for stated

Kim Brady

lines Look, we've terms done making a available we in our ready. labor and our And in that production great sure of job are capacity have place. is

-- ensure suppliers working that locked components can as packs the well lock with And our respect can X to various as production right as as that are feel Those where element so, confident that well have And to we're much we capacity as XXXX. have in with influence as possible, the control, that the suppliers about XXXX as as are we we're we key in where supply. we integrated we suppliers trying battery supply working and circuits. self and with now, pack for to ensure well to we

a believe there how to up think better we give that capacity much you than in what for in be to about ramp. preferred year, our XXXX, demand is accelerate some for stated we previously production about the guidance the But we to position that one next So to manufacturing will our we guidance. available. our team ability that to have certainty trucks greater X,XXX is we'll extent have units have produce the And

Operator

of question from Peterson is JP next Our Morgan. Bill

William Peterson

Yes.

of this you of you harder about You've for example, infrastructure compared your wondering Los relief lot the infrastructure impression course, of vehicles. U.S., to install electrical maybe supply a come high-power call for We've also on to some But by charters. on constraints get some hydrogen announcements, Angeles in some seen But this have some the our it's spoken I'm harder passenger part for the to of power And permit, about and lower vehicles. projects. assumes, is charging infrastructure. that harder to

in install. other So to it words, take longer could

a guess with with other I for charging about in earlier the working ecosystem, at volume? I the BEV where customers mentioned a that doesn't that of on is, understand if shipping making to potential the what question surcharging you is in again, you're But way Tri-Eagle. think model? the partners able start But the limiter, I your capability trying case right your is both Just and and for first Nikola utilities will role guess and enable operate. that guess U.S. truck? how is electric and sure So And doing Europe build what to the to become trucks least ecosystem Nikola and

Mark Russell

behind side, These are So, -- infrastructure several that's is a much you the like vehicles ourselves increasingly it is only between great a as or And want kind infrastructure fence. call the is capacity on difference. commercial have property, about behind BEV said, solution their vehicles of that hydrogen in highlight have vehicles all years hydrogen to you customers that charging in that's are question because for vehicles. prospect pretty what every and see terminal And charging I infrastructure exclusively the big need public stations the finding would The for their difference you commercial to that on typically. charging for these fence. we we simple won't kind have a case at kind a of talking charging now. for These not we of

XX those, that's be to got taking up fast you've that's purposes. vehicles if -- capable of Our charging And of will kilowatts charges a lot for of power. XXX

facility. upgrading, And the about things talking be that are to usually supply get the power you done that are if needs to so, There takes time. that And can started.

tracks a have purposes of use places. we We charging temporary using have test we the a lot have testing in don't that been for solution of the Most we need.

good are far. we temporary our able Caterpillar. dealer we're charging temporary majority of these at one this are that even network power specialists which say of they long-term dealers things in the That's to power. Most temporary in neat our of about the also point, solutions really providing power dealers dealers I'd this at And Most have for temporary also to providing put at so do. of solutions. and So point them are

you, charging a that of hard that's going that, on the we're sure really provide we on to vehicle there's Tri-Eagle. the for So solution the do of other offering like lot and in hydrogen side. like make can we're work was they're of the the and I going the just tell the can able what to Power to Green discussions whole And just case dealers, terms bundle, in where

get the you you you the need get maintenance to the the and that the get support, If the to move. the truck or service energy and charging truck, get you

power, to more going So you're be that's this going utilities, I implications and on a see front. vehicles front, for going as grid operators way more Two in just power power. some for of great on that X big future that for you the is this think going make on forward. to commercial I'll going teaser question. for the the us prediction commercial I'll give a way here. right do deal you're us to And as the a about and hear from well

William Peterson

for answer and ecosystem update. to a recognized Thanks the a I year. lot these hydrogen lot sense. want this come back of of that and do announced makes were to that That earlier

lot color And a you are provide the thought deployments locations. during about for think the targeting regime. hydrogen quarter Southwest maybe I But think helpful. for envisioning can maybe For given some you example, to pushing. we're our was cell have as what going be can the on update travel I'm the It first alpha in This these XXXX. are earnings be road had guess as call. obviously, would I in might California, substance I think is, X you're But we to XXXX? electrolyzers, on the the as question any fuel centers, specific on vehicles assuming you're and of the enable going this capital supply fast I The that of of of see it, which mentioned constraints terms not commitments Nikola's

Mark Russell

All right.

the if here, Let got down me all see Bill. parts I that of

-- will -- the is facilities. which TA, We haven't with existing start hang which they first we we to been of which that the All which on where right, tell are have let's are facilities X TA state have But you we're they Those checking second. I going going have those be do first can will probably actually we're announced dispensing identified. not X you those just be sure are the So yet, facilities make fairly to dispensing announced. identified one locations because in so that's X starting. they're straightforward in are But forward. and only. at guess Southwest, -- because locations identified,

is general and truck So the us are we to trucks. and we such plenty that infrastructure bigger In TA And because able room for fuel put than on their that average in be to the so TA to of storage have just dispensing location. need gives have tend facilities great us in be stock a to to partner facilities large. general,

and here making that State to have Now APS have out dispensing, order. for for Arizona also Commission with relates agreement electrolyzer capacity an our have choices, which we're the It the get the that and on electricity in XX-year using rate we the to a in something because Corporation put announced hydrogen only that means hydrogen will that water will Hub, Arizona. of we be of there, -- be is working we which course, of that why Southwest on the we they're which

be hub its order commitment electricity will you Those We have of hydrogen We our at be electrolyzers available that with add capacity. methods making hub the and hydrogen may and other that And referenced. this the make to to which be hydrogen amounts for the of Mel, run. time to make customers as truck is have hub. of of large asked, redundant in this will there from our on clean to service for $XX will you million first in-process

has So lead to trucks the slightly. the hydrogen

In before some the -- you've need. and it. put hydrogen a you'll that. cases, We'll where temporary And capacity need got so in trucks see

battery we have like solution a have as just mobile well, We mobile trucks. charging for

but you'll into in our target that with of see the starting for trucks, Hub stations for geography. production place first we hydrogen temporarily, fueling X initial infrastructure those going advance geographies and TA hydrogen hydrogen Arizona in put in with trucks. mobile Southwest And that can for have We the the starting

Kim Brady

more a of here host Bill, Day. lot year And But Analyst you detail to next want when something an share is we think beginning we'll about. we that

fuel X And kilograms Nikola For have day be XXX example, Partnership per on-site to stations. major day, right XXX but of hydrogen Tre per day. the an for for and day. tons by XXX that to fuel tons talked represent assuming for addressed the But we that XXX to X let's would day we that per stations, need XXXX, about, of the approximately own per assuming house XX generation approximately fuel-cell kilograms hub equity up not say, And have also TC per by, and obligation. we XX%, could tons XX at

So it offtake the potentially is agreements. of quite TC yet control locations, may substantial own possible we in ownership, in of many those molecules equity Energy terms

suggesting is that are we we're very to going what so, And be creative.

of the will years. we have We X are we think about about give you structured, how good But in going of to in ultimately capital we're and And thinking we X to how want terms we are for capital what we be excited insights pretty about be may have to allocation. able better terms very a next efficient. insight to

William Peterson

these color constraints. the for manage acute to supply Thanks and wishes best

Mark Russell

Bill. Thanks,

Operator

BTIG. Our Jacob next Green question is from of

Jacob Green

Guys, me. quick for one

in guess, And or go-forward you midterm? broadly built talk any out we network to of capacity supplement any expect there say overseas or dealer in You out Coolidge volumes this on to or to received own the your more Europe near should have I orders you first, have in the all. truck X,XXX can strategy more

Mark Russell

great a question. That's

European customers. So first start let me with

the them expansive take they U.S. in Hamburg, use launch truck. Hamburg. going for very Port spec, are U.S. the because use and to can XX Our allows port will a They're them that in of customer Europe be that trucks spec to there

kicks Hamburg. of the us that Port So in off there

other customers are We of Europe. to talking a in number

existing the in the IVECO network has dealer Europe, in Europe, which good network we advantage coverage. of have dealer Our

customers the course, output portion own We ability of dealers their of IVECO as the will IVECO be to also will Nikola branded, XX%. and selling of those Both of is our Tre of have any support is use IVECO's well. but selling those the going to to customers. factory, which be be BEVs

so a dealers alternative in in talking will service network there's to the experience all vehicles their course, with hydrogen And Europe. have us slight have dealing fuel of And that they difference. fueled. ours fuel generally, place so of already trucks. ability some with market of lot in And a gaseous is be for there. So service great this that trucks leader And heavy already. But to of dealership us -- in now that have with about dealers place. number front equipment. partnership fronts, natural they are on is with because a valuable especially is but dealer fueling IVECO support dealers the we're heavy are used fueled IVECO gas, fuel alternative heavy and on These to for who

So what still in the already we're here. place building in U.S. in we're Yes, Europe. is Operator?

Jacob have I though. think we might lost

Operator

I think right. might be you

moment. from Bank. is One next Okay. And question our of Yu Deutsche Edison

Edison Yu

I supportive. costs goes on, kind that's with I First can't you are the that LG. guess, too need go But coming they finding know, you just maybe I obviously first everything that's capital the the over directionally, beyond So thought I any just can about But are in going the in the have industry? about thoughts and that, on that? know you you Tumim, question, second much raise. agreement question, given then, process reveal are how updated higher, question. And very guess of

Kim Brady

battery certainty last Edison, be ultimately know in XXXX and price At questions. we year, that decline public for assumed price what this XXXX. not declining great both point, we we When will would went that XXXX. sell

we XXXX, We that on are suppliers. beyond And possible comes have idea online capacities believe be that good pretty in do what worldwide we anything we a believe will have would there by significant When XXXX. it sales do be based to signed.

for dropping you overall something XX% working we're trucks. to of your battery comes bound electric on. that approximately when know, represents as costs And that's However, bond cost, it battery

can So quicker remaining have looking for if at than that components, we drop we are anticipated. we the

how much well terms are And this we'll and terms giving about is a work bound quarter margin. of we the a so, engaged profit next better idea in have at the you as as some in lot think of that in cost we of gross perspective

to right Going QX. the question. second believe, have at ample end liquidity your We now, of we

million. $XXX and availability have million of $XXX E-lock We million, cash, have $XX we about of

terms in so, of liquidity. we year-end, will have $XXX have And approximately the $X.X liquidity. in terms we billion By of approximately available million

have always that our cash would We sufficient times, that preference have at following be months. indicated for all XX we the

next flexible. And and terms go capital amount and QX we final course, going based conditions to offering, potential we but our via And fair a flexibility in so, ultimately, we of year, sometime current of on are and additional want to be address of liquidity. we when have market the

Edison Yu

you very much. Thank Great.

Operator

Mark the remarks. session. of over end I back now closing will the Russell the to reached have question-and-answer We call turn for

Mark Russell

in to again in And our we'll for everybody you Thanks. call. looking on to be forward joining a Thanks, talking quarter.

Operator

conference. This concludes today's

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

Nikola (NKLA) 4 Nov 212021 Q3 Earnings call transcript