NKLA - Earnings call transcript Q1 2022

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Operator

Good morning. Welcome to Nikola Corporation First Quarter 2022 Earnings Call. At this time all participants are in a listen-only mode.

We will begin today's call with a short video presentation, followed by management's prepared remarks. A brief question-and-answer session will follow the formal prepared remarks. reminder, call a being As Instructions] this is conference recorded. [Operator Nikola’s my Investor pleasure is Director to It [ph]. introduce of Kwon Relations, Henry you, begin. Thank may you Henry,

Unidentified Company Representative

Thank Chief are Motor Mark to Chief Executive of everyone. XXXX good Nikola’s Nikola, Division. call. and Russell, you, Kim Michael of first President Brady. earnings today Corporation’s Officer quarter Welcome me With Officer operator and Financial Nikola morning, Lohscheller,

accompanying X certain XXXX release the section financial today's and views our can presentation laws. outlook During shortly today's am results results the and environment the Investor for forward-looking and will The federal was website, Relations QX securities The detailing this of the Pacific and call, morning. QX, be the statements found on slides our XXXX. press along our business within call. for Q&A time Today's share distributed year our we full includes after release on company's presentation with financial

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

Form cause may risk made, be factor to the section from of reliance the forward-looking company's the results first and and speak as as as the forward-looking filings they statement. SEC. For Commission presentation, quarterly undue release, XX-K well report on are about with our statement factors XX-Q page the on in please of addition refer the more Form information subsequent put annual and to cautioned the with Exchange on that to filed differ should Securities only of statements, not readers materially date actual the forward-looking to earnings report press our

Russell from We Brady. prepared will and presentation a Mark brief followed begin remarks now Presentation] Kim video by [Audio-Video

Mark Russell

been two to engaged continuing miles customer was positive point for at in and April. and so our utilized programs, over pilot our The success. build TTSI’s and successfully call. These that joining at our months of we've target delighting program BEV thank last production ensure in TRE in were demos made talked overwhelmingly crisis partners side trucks manufacturing and during test pilot off like milestones to efforts, review for all trucks. California XX spite with since of the and in go has business of that customer the met, getting day, our video. and completed to progress chain Southern uptime, kind focused on the targets state accumulated at saw Ukraine, We're Thanks you Everything delivery grateful assembly China XXX exceptional first of shutdowns the last customer the this an we Nikola fleet obstacle, TRE-series on be their and over feedback our XX% won't us, every vehicle extraordinary global a continued every customers of years especially charge the to and war which this. quarter. [ph] despite finished a completed testing. everyone XX,XXX let's very grateful BEVs team and XX quarter, put these X, dealer supply of of line to came you the quarter of anxiously on to continued that part final TTSI you of TRE-series be for done has that We're uncertainty in including COVID-related just own to miles using and landscape. operations in steady in additional day. right, progress total Slide the on These to remarkable in R&D XX% only port combined our for and A the have this. just big average every I'm our achieving pressure All their quit, new our of the total few

previously POs with California under program. TTSI, issuing the we the they with first agreed began submitted As incentive XX HVIP

Covenant We demo looking Solutions now a trucks others. pilot customers launch yet from in programs. pilot and also here but California for utilizing April POs complete We're with HVIP. with resulting completed our traction significant gaining we'll at be Univar in shorter six not underway Pilots amongst and include Logistics

And purchase cereal Let's orders we've go is production is TRE total BEV Since XX, over production to just XXX through purchase year. received of our started April. upside the all to Slide Nikola for target otherwise date March XXX orders HVIP TRE five. BEV for received California this which on we and

the Turning TTSI Anheuser-Busch on with [ph] with testing the XXXX, TRE program to end production of builds half to we NAB’s pilot FCEV our All six have X first a Slide alpha X. the April, hauled be of trucks FCEVs. of the of will of learnings freight the TRE operations. continue batch followed QX, California. alpha of and total truck serial of into by production the At half start testing in with beta May. of quarter. end FCEV Beta to FCEV scheduled pounds commence this XX million end validation program the the through miles By completed logged the the over successfully XX,XXX is we in We’ll incorporated second by by from the alpha pilot first testing TRE trucks year. end beta of set the pilot beta fleet should These

contract of we LOI trucks or had the either of TRE X,XXX under April, [ph]. FCEV As end

to a hub intend first production electric TA Slide first we're us the and of production joint the production annual relatively a the from Arizona. APS of station in dispensing We in year to the TA’s hydrogen adjacent Phase provide XXXX. with evaluation TC put footprint close up will future. sharing is to we X Energy and announced Nikola is TravelCenters on to on energy X Along to take opportunity go this others haul We completed assembly the the our and we day announced in units Phase a be within unit of expansion station Ontario Let's capacity area phase first in day hydrogen partner will Phase to to hydrogen hydrogen plan capacity. existing Ontario, continue there. intended and started in completed per very for California, could hub low the TC our XX. break We April to infrastructure expansion of per there, hydrogen here of our an while station long providing gives original significant solutions our to Arizona, jointly customer. of to two nameplate Coolidge region, carbon tons for you in in the XX Coolidge the us production will during that being refueling year. expect and and quarter. also in our large which is ground Interstate a America location with to in business. which TCE supply in Energy, Nikola hydrogen tons build utilizing to fuel our hydrogen rate partner selected place estimated capacity X and with per This hydrogen Alberta. the This in groundbreaking XX,XXX X. FCEVs X the XXX hub’s with location region. station committed Crossfield, our the be X,XXX in excellent during the anchor hub us an source to the quarter investing quarter, schedule by update produce Onto hub able of We April, scale in many Slide This

service march an Equipment expansion territory. to the an with partnership Arizona we cover agreement In sales slide. for announced Next our also of with them Group Alta and

extraordinary sets states Our sales locations. network partnerships. service in over XXX covers In service our of our March, dealer expanded apart through and and strength footprint sales and the Alta network and of to XX growth continued forward to conversations. expertise bar Nikola We now partnership looking the with additional We're we directly customer believe Nikola ENGS sale now Nikola also offer over the numbers. Company dealer to network for to ENGS entered over to of into All help and assets Kim work Nikola solutions to vehicles, Finance vehicles. charging purchase of the agreement the with financing Commercial an with right, will customers go and facilitate the infrastructure.

Kim Brady

morning, And Thanks, good everyone. Mark.

to diluted million for in costs, sale Let's generates two, $X.X diluted basic non-GAAP XX net fuel of consist we depreciation was to share one of non-GAAP trucks. expenses $XX.X MCT which begin Mr. per incurred charging out and in expect million validating non-GAAP the per become $XX.X for coming approximately the compensation expenses the in in $XX.X totaled building to we regulatory stock-based trailers, R&D including in and for Milton for fees mobile years. XX% testing us expenses gross we in his million, for excludes, related driver and expenses. the product profit not $XXX.X and came key TRE loss with Nikola first loss a In be EBITDA share results. $XX.X developing $XX.X amortization. cell million expect stock-based and our loss stock-based On million QX adjusted while The margin were under of basis, growth negative to $X.XX. and do $X.X approximately development Basic from $XX.X was including we million and indemnification $XX.X reported and Research Adjusted sales million, were million BEV $X.XX. matters $X.X sustainable. a quarter EBITDA Nikola back expenses compensation costs thre, compensation; reporting. legal net quarter in and net XXXX SG&A legal agreement, million attorney’s million. which million The of revenues

sheet, $XXX ended cash to of with Turning restricted equivalents, and million cash the first balances. balance cash the quarter including we

as with million have In providing million Tumim, two of through XX. lines with approximately addition, March also $XXX liquidity available our roughly us equity total liquidity $XXX of we

mobile, tooling, equipment and of guidance office European testing totaled in made and we significantly our due hydrogen Facility, anticipated space the JV. spending. capital QX timing in CapEx and what came our part of investments comprised storage into large supplier million Coolidge had expansion $XX.X renovations fuelers, A the to construction in of below for of Our our Manufacturing Phoenix, building Greenfield expenditures year-to-date hydrogen and purchases,

capex announced Nikola invest year full senior convertible by notes. On million May investor institutional unchanged. $XXX an of guidance purchasing Our an we agreement X, with to in remains

of The fund investment net notes, total validation Nikola cash proceeds XXXX. our of for hydrogen has on development to shares would were the notes and including as and business to accomplishments liquidity the made be other used this shares accelerating notes scaling of million early related convertible average March approximately XXX.X expected the sale of are our $XXX as funds, the truck view the billion for recent expect liquidity June. the general strategic infrastructure, diluted Weighted million. expansion with well tooling a our approximately as manufacturing, along $X from and outstanding. of We position million had sources, operational and the the first company with We in purposes. quarter have basic approximately XXX.X as for a corporate We ended to quarter of XX setup,

Our XX, was employees. of March headcount as X,XXX

to functions. manufacturing supply IT and other as in development, talent grow We we new corporate and product continue hire engineering chain,

to million anticipate guidance. which to began dealers customers, for negative, Moving compensation. them. stock-based million continuing We likely associated are TRE outstanding anticipate produce million increased million. production. forecast weighted we will BEV estimated is million shares to of XX on million. to improve the forward for compensation. fixed including XXXX is quarter difficult shares with legal spread between TRE We of fees Nicola expenses scale outstanding SG&A to to to second of concerning guidance, full range anticipate and BEVs We $XX Actual to so XX At revisions our range $XX million over zero $XX no of includes in trucks to XXX.X and saleable QX, gross quarter units approximately are defense. and predict, of we to our our SG&A scale. the look $XX second million roughly Milton’s shipping emission end deliveries ranges for be million, $XX.X $XX.X in not excluded. will but $XX.X we on to as deliver costs million, revenue, $XX expense margin having revenues R&D million of fees expenses expenses. for CapEx be number $XX April margin at are gross to they the XXX.X approximately million. for delivery the higher year We or guidance between as This QX our Estimated of stock-based non-GAAP And due the of XX XXXX are we average deliveries, the to Trevor do $XX.X made

as shares line weighted However, outstanding conditions average down raise if we Tumim additional with fluctuate could or equity market draw on on capital. the our we depending

increase the are in will of through the net remainder forward, European include product joint activities. flow going expenses of to will affiliate development expected losses a the earnings JV line EU our are in to equity the activities within acted Additionally, item. IVECO with JV the Previously, we the expanding contract manufacturer. Accordingly, earnings This R&D of year. the that or our increase solely as venture XX% of increased for result in loss

challenges provide that in did cost the not chain ongoing we months. and February. supply in China in and in recent zero COVID outbreak recent I would to led COVID like supply additional color bottlenecks guidance. in our factors policy last were on China to Ukraine issues anticipate The The Next, has discussed chain embedded in more some pressures back war when we

Nikola our impact still about we our without confident the target have targets. battery from current more Based TRE sight, available supplier chain other our the in are and we packs XXX XXX revisions. full to to year to is and Battery BEVs, components meet XXX BEVs. cells any ability commitment there to magnitude build uncertainty duration key achieve of to on TRE line of While full than to build our this delivery making reconfirm range Nikola electrical supply continue event,

with pack in closely Our ensure inverters more BEVs. supply build more than and so battery not Nikola’s disrupt Nikola build a to Nikola BEVs, to to TRE XXX Nikola XXX no than XXX displaced chip than ECU module working to Nikola to [ph] gaps XXX subcomponents schedule. chain is build battery TRE as supplier team TRE supply, more build and than BEV to TRE E-axles more the BEVs. build

to and have production strengthen ensure strive talent We BEV components first team chain supply beta growing for cell critical during continue We the TRE to and builds. adding the quarter. our we headcount necessary by fuel TRE

We remarks. dispensing completed TRE XXX XXX cell announced more five, four, build, established strategic TTSI; and testing revenue hydrogen are on One, goals. pilot five fuel two to with and hit EV This or we our production test testing commence of cell Station report trucks; way production in cell construction earnings to successful our production TRE two dealers hub electric for alpha Anheuser-Busch in first deliver shipped three, break an TRE pleased concludes QX and California. fuel trucks; And location, April validate and and prepared fuel Nikola Arizona, the successfully milestones alpha ground beta AB in BEV partners announce achieving to our that BEV and We in to TRE the trucks we vehicle operational on call. with XXXX. are well to

We will address the line. to your remainder Operator, please the the time open use questions. of

Operator

Evercore is Thank McNally [Operator proceed. Chris Instructions] Please from you. Our ISI. question first with

Chris McNally

Thanks so much, team.

per the hopefully hold? QX also Do And can trucks those the about two how out just wanted progressing behind from next pace you of QX at if truck now progression can the trucks gives something of numbers. of that to things the the unit ramp little Day the so to per of day put about you by general to trucks the towards all you at one-two to still day end over five like internally That one have the Okay, see of day. is gave of a broad a numbers meat you bit [ph] year, what to that comments end the Wanted course kind we do eight producing deliveries confirm key if getting way year. to and talk to the QX Analyst Appreciate the over could months? of the QX per five sense

Kim Brady

thanks for Chris, the question.

in we were QX, when have manufacturing And stated really QX when It's also that visiting what recall, it site the previously about to in issues. transition you was earnings from it's facility and have are If ramp. to call, towards on comes our about supply deliveries year. we really QX Coolidge, actually you chain half stated that [ph] not skewed our second

well on in to to half what that's chip available be and second going about So XX%. our year. is be that And of in XXX suggested of that will we units the have battery supply due this year and delivery based delivered the as really packs, will QX for XX% QX, as QX timing are approximately of the the certain represent

as actually confirmation to easing scale our So and a then and nothing have to at has we we can actually with manufacturing with respect more chips, trucks plant. build chain up supply to do our ability

Chris McNally

Kim, that variability. one paraphrase? Is I year-end. components the that’s be the that to obviously the XXX will the variability of the paraphrase had the if that good just by is as QX just that, that ramp. external the terms are remind Is range Because And to you fall between have in described, an into if QX way you'll because a that just great. the chips it's issue only which but really in and in for of guess big packs get to of you really you most the -- the a timing all of sales then appears best the packs, secondary. on could that chips us And XXX

Kim Brady

of delivery Yes. the we think what that main and And are modules two was packs. risks I stated have

are comes BMS of the comes we our components. a when yield. are trying of efficiency makes microprocessors there's and And chips, working supply sure it to And such a couple we're sure couple And But there and there have are that chips, and there that no are closely hundred in second, build. we're to make so our to critical supplier, manufacturing it it a with disruption that few boards, when when that important. those then

Chris McNally

just Perfect, and then one housekeeping.

you Given of to of bridge the is the Phoenix, -- XXX you I sort convert. expect financing would million that again, mentioned to the end in ’XX, number to new $XXX think

that to wanted reiterated that make this sure implies at Just XXX convertible. essentially

Kim Brady

ensure months we billion. to end have are stated anywhere on following that's reasonable. that we this $X that $XXX we million for operation. And of that targeting from What XX also is think stated have I the looking to liquidity adequate we we that always have year, and hand of have liquidity cash to by of are

think reasonable. I So that's

Chris McNally

Perfect, much. thanks so

Operator

Our with Davidson. from is question next D.A. Mike Shlisky proceed. Please

Mike Shlisky

Good up Are this or be on will you expenses the Europe. hear I have hello. about Did badge related quarter? that you truck I morning. all be and guys to badge developing Europe, Nikola comments to want last a their IVECO, follow it your of that previous correctly? with Yes, will for to IVECO some new

Mark Russell

Mark. produced refer in specific we Nikola. And badged joint This XX-XX the ahead. I'll output will there be venture Everything terms is proposition the Go that a Mike. Europe joint remains Nikola the all Kim. name. the brand Thanks, will in numbers, to The will joint the venture of venture of be --from carry then

Kim Brady

the that we that what JV greater actually European of Mike, responsibility relationship, that doing What we're will development JV. trucks. means expanding is of are which And version is include to we're our given

as related that is as R&D that forward, what is and Nikola making well this IVECO additional for And be services. investments means of both outside will Most personnel, engineering going to R&D. so,

of impact we will And our -- an impact the to So from investment where JV. are we a equity, the will working now, loss details we would better that through the and exercise be costs it relates QX, Right minimal. able from affiliates. be in guidance. give through And are going you what terms our incremental before will be in to in

be guidance be that we'll QX, And what QX impact forward, be. with and going you the larger. will able share will to So

Mike Shlisky

have me distance Okay, of be located and to and for from it dispensing pipeline? share? will Or any you that some the far other property location, area? a Is I new flow it hydrogen identified that Could in the with the talking Can a trucked switch as far dispensing the hub. guys Alberta you stations the TC? your stations? really of of let great. that as partners facility feature If you be coming various in of on in out might to Because have

Mark Russell

it's -- much we of carry replaced in where here agreeing direct going eventually. can't in uses electricity, something destined locating you pipelines gas refer close natural a One The to move now the One pipeline across operation major of for some yes, Atlantic. and everybody's the way the Mike. likely pipeline from potentially substituting in gas the hydrogen planning. they Pacific the be one point very because be going with location needs Canada that's the partnership to to be route hydrogen. of that's all And would, should producing we And in that that -- of the carbon. enough Relations course, of developed to control Canada be that And this to across I question, Investor that and, were the things will And region for Energy Energy Canada assets Great Canada. strong throughout hydrogen TC And is cost is reasons logic North is substantial also to Arizona be TC effective Highway gas transcontinental to and can strategic you route Most at industrial to goes do very -- capturing natural pretty be the in then hydrogen carry defer natural of a assets have to by There's to for near America. today are some future. eventually Phoenix be

we long So is the short important being customer. close the be pipeline the run, In a in to run. will anchor

to We have demand.

we participated up that cell recent a in, a there. conference up fuel lot some seen materials came out the Calgary of have have we customer actually there, demand of truck might in a press of You had that

be will facility. early about feeling that So confident we this Crossville the confident, geography from looking are particularly launch for an new us, since fuel

Mike Shlisky

Okay. last the quick this ones FCEV with I have Maybe AB That's planning quarter, for TTSI. here. that to granular you TTSI was too had mentioned of to still that me. one appreciate same you're we don't great. Last get on I want through quarter part the your and discussion, one But guidance others. in get you it AB testing

part any You this dropped potential running on to the end change quarter, is this those besides there the other tests two you're customers?

Mark Russell

others. No, there will be

As we is pilot. this earlier be presentation, Covenant there in others. also in will current And test mentioned the

daily As do demos we this and more customers, ones, as long the gain said will reduce. don't the my remarks, and more long, really to confidence, confidence gain we doing I programs testing in length the of with point, pilot We as which are doing we're prepared we have now. at like

Mike Shlisky

Okay, great. thanks so much. Kim, Mark,

Mark Russell

Thank you.

Operator

Markets. Capital is [Operator proceed. RBC with Joseph Spak next from question Instructions] Please Our

Joseph Spak

a couple so Got much, clarifications. questions everyone. of and Thanks

which, know have equal Just you I going left and back little a more the is ELOC need the amount to through I liquidity. [ph]. XXX the on you over then you ran the should guess, to bit which have Kim, math

sources, need look you So sort sort of so is it, guess might your of that ELOC get I additional for I you to understanding? that it, that's mean, available you -- that if you but [ph]? current

Kim Brady

on one remaining one we existing of for And spending ELOC [ph] [ph] anticipate We part our And plan Right. and our on down two. and it ELOC approximately clear, XXXX. drying have think I $XXX Joe, our made million that’s two. fully we

Joseph Spak

Okay.

at look that, And you But day it, guidance. this day. like like But environment, of working So this of and bit know, I just $XXX sort capital, sort upon you and comes quarter. know, I especially a to looks little of I it in like guess it to by about could building looks add look take your I expected a million sort burn, cash more. if guess the we at is have about

assume of as burn that goes if five-six it ramp. you of suggest reasonable of you would goes sort I to if higher sort what probably I which think availability quarters the think it's lower, before to liquidity. higher it's have And continue I that

-- but the of do you chain But pace. supply ramp as constrain here of of early sort your much to with towards go needs year? you go do might -- the much what really like higher you this and of at we really when that's at gets next balance how a think or wants So level need production, about to how the clearly stages beyond want to higher into year, sort a

Kim Brady

not when we have have liquidity previously, have we are that battery as well stated raise as end yet. for look clearly of And stated, out we what X,XXX we cell some But stated XXXX, XXXX have there provided for to respect that cells believe build based for trucks is that any next on we will Joe, guidance we have we adequate we believe will be packs to have still capital supply you XXXX we XXXX approximately for contemplating. operation by with enough chain issues year. availability that

volume been cell has secured. that So

be terms well as We to operating expenses. going CapEx as idea have in our what are some of

that capital not be confident for will able have we address point, in at approximately to feel that billion that really of we While this XXXX liquidity planning sure is XXXX. $X we XXXX. having Any raised

Joseph Spak

Tumim. I think change, says, you does. considers don't on future for just then notices issued it thank but which footnote to it just reading the And that I'm Okay, the guidance purchase shares, the that. that clarification

of of [ph]. going should that. what as then how are the going also, how that we further the are drawdown that Or handle ELOC converted? to how a So you to And convert? about And contemplate for does you are sort be accounting

Kim Brady

So, have with respect to we already drawdown anticipated for Tumim, that.

general there be may what be the during comes numbers. we somewhat price about always When a we and assumptions will we the the stock depending drawdown. we can suggested, adjusting convert But stock make price it point As some fluctuation, on where happens period. of at have the sheer obviously, it to when

Joseph Spak

you. Thank

Operator

Please Bill Peterson question with is next JPMorgan. Our proceed. from

Bill Peterson

on the questions for BEV Yeah, have taking some hi. the program. Thanks questions. I

And some near term, just understanding. of to want of get kind some this more but

last you you So, time for TTSI. XX% XX I mentioned uptime, mentioned think

around think just starting but Just the And that you is that? again, you mention here. then context one in going important some it be can provide in I to was Investor for guess, one mentioned how you April, didn't SAIA that hand? I Day

So, plus the guess I second to schedule on talked June? You understand, guess one Hamburg for quarters. seven in still about -- is I

understand that [Indiscernible] the outlook what looks near applications then, what for nature. still like And to program. trying of, Just the interested things kind like just term BEV in

Mark Russell

The uptime Great BEV you. is thank critical. uptime X Any is Class Bill, question. critical.

As you on. with operate, customers their the so far don't we've the TTSI, don't results run of we're with If These our pilots others. are base very and make that know. machines they pleased they money. And the business

We have haven't front disclosed. going publicly we that on lot this a

We are of customers. with working lots

customers, are point, of demos customers. and are and working dealers running all dealers working Our with with lots trucks have at this

So the demand pretty seismic. is

at zero becomes If capable, the trucks everybody is, that you about somebody one. like a And wants can terms is emission this then then discussion point. get reliable a and ours

far. very we're with we're so pleased how So doing

love reliable tremendous. far, you in them. feedback These the video, the it's very saw and As proving we're trucks capable, very so the and drivers just are getting

emission leaders those tested of trucks the than So trucks, they saw that trucks tested, the know in fuel TTSI And trucks, the the feedback say. have video, we more that are the I more they video. anybody zero case in emission were on different interviewed than you of, XX of as they reduced TTSI, alternative

about on you'll land the customers of now. hearing that's And up lot And more this lot right the as there's lay going be ramp a there. production. front we more So a

Bill Peterson

get weeks But just pushed it? hatched on six or like pulled either does said least like feels whatever. But it it at ago to demos or something's based what some you sound were

Mark Russell

stopped we No, any haven't we haven't demos.

pulled has -- and haven't forward. any we We Everything's demos nothing not haven't, no. going

Kim Brady

and So be but would able our we Bill, I we’ll demo you actually show that testing. information say no pilot to additional expanded have

Mark Russell

right Dramatically, direct going as own now their work. our in our I dealers said programs fleet to have addition

Bill Peterson

Okay.

guidance. into supplies that of think gross the redirection environment. year? is taker agreements price should I trajectory, in inflationary full guess I collected you've including the environment, the inventory look battery because I for But know next constrained broadly good and see for how materials, into thus assume think we next and it's in increasing, the of Just of as an inflationary really from the far. the sort we about on the some full But look we had, should largely minerals want year? some margin Considering, maybe pay provide to to this DC the reiteration you you've year example margin impacts guide. cost, we I and guess, about wouldn't as given how the

Michael Lohscheller

plan comes And where next that we XXXX, know. Nikola it’s when somewhat territory. exactly as gross of it have we terms Bill, margin But you it’s in freight premature, XXXX will we end And is there to a guided profit in to challenged, of what be year. be by for for positive

deliver. pull where We can we And as are line sight have by and have working know categories. hard, of visibility, we put we as well and we targets components

we materials. respect certain there see battery we areas talked out. where we we to approaches respect as to haven't biggest whether see we to have And comes and kind want And and challenging and supply. what enough chip stated and half to comes about that, when components. with soft well will As what shake are of then second the we'll couple away of with have to sales of by chip be to And we have materials raw at point XXXX. pricing backed But it when see pricing raw that to may this to demand a end it with the related will in the to be respect as year cells, the the

Bill Peterson

the Okay, color. for thanks

Operator

with from Osborne is proceed. Please Jeff question Company. Cowen & next Our

Jeff Osborne

on Hey, guys a the process. couple good questions HVIP had morning,

funding I think -- the both the for the any are that two fleet guidance orders? orders and risk fleet provision. of part than is want larger you Is which announced ability there I XX, small that under trucks the to get more might XX folks to small guess

Mark Russell

question. hey, great Jeff,

by great who a this taking them in As covered And California. on deliver working way. under the we're of good, in team up are we're that's big got covered far with this, HVIP. advantage why targeting the to HVIP That’s interested this are XXX trucks we the orders year we customers the have pretty the on goes. we think. That's that of is obviously I Again, we've it. state have We're directly. said we've program. And to officials of reason by XXX. a And the on And trucks. XXX so the of the number XXX gotten far a working others, But control of for total program how purchase the lot so completely depending

Jeff Osborne

trucks? any are over for But individual XX of Absolutely. orders an fleet the

Mark Russell

to for hang the before see if and don't today there I answer We'll get we up on. here. know check Hang can that. that we

Jeff Osborne

is -- one then -- we a third at in else, XX% everywhere perhaps you is and called level just pricing No a pricing, level the between given think worries. different California guidance? And about of California as to are there anywhere

Kim Brady

And looking different we that actual our tell that. you than definitely that $XXX,XXX. higher We And, for we're that pricing Jeff, geography. be we have there should anticipate is that. our at we're will guidance pricing in realizing guided can

Jeff Osborne

great I those. Yeah, downtime XX% but for obviously and just Could you reasons address last like what still on downtime factors one a XX were of then the is the was? is two the like I'm number, number and just to you're what the curious, time. for the one leading what had share doing

Mark Russell

pleased have distribution that same a We I everybody's causes the don't have But it's with highlighted of uptime. me. number downtime the the video. factors. customer the a front the That’s of super Pareto in of was in and

Kim Brady

pretty to you're sure for actually --- that trucks, from want Jeff, XX if diesel anywhere to even we some want is achieving set we good. Hey, expectation make XX uptime to

we trying we the our that So we sure target to want to while are we are are customers right expectation performance, improve make for. our looking set that hitting that the

Jeff Osborne

much, I it. Thanks Appreciate have. all Kim. That's so

Mark Russell

Jeff. Thanks,

Operator

turn closing We of comments. I have the session. over like question-and-answer back end the to conference for management would our to reached

Mark Russell

call. quarter. Thanks you next And to will our talk we in for participating

Operator

conclude does This you. Thank today's conference.

You may participation. disconnect your lines at this time. And thank your you for

Nikola (NKLA) 5 May 222022 Q1 Earnings call transcript