NKLA - Earnings call 4 2023 | Nikola Corporation

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Operator

Good morning. Welcome to Nikola Corporation Fourth Quarter and Full Year 2023 Earnings and Business Update Call. Currently, all participants are in listen mode. We begin today's call with a short video presentation followed by management's prepared remarks. A brief question-and-answer session will follow the prepared remarks. operator the require [Operator should anyone assistance conference, during Instructions]. If

Relations. being reminder, David is Investor this a recorded. Sando, go conference of introduce As to is It ahead. pleasure now Head Please my

Dhillon Sandhu

operator, Quarter Full Call. Fourth you, Nikola Business Earnings and and Welcome Year everyone. Thank to morning, Corporation's and XXXX Update good

this actual end cause the call can today me Corporate Investor and deck are President our of press business A found be are release press filings X Girsky, our statements earnings was Controller. our financial results could and forward-looking can and issued results may U.S. from release earnings of CEO; also of measures. references section slides comparable accompanying Joining website, and and Steve measures presentation of also Relations release press morning. distributed to also on differ found along on today's that and in Actual earlier QX about earnings SEC. end the discussion detailing Today's the plans. reconciled some results with These release materially be and today. includes stated, most measures are Hoog, with to our the today's at Brian This call.Â Today's our we discussion factors GAAP non-GAAP includes future at Page explained expectations results, differ the those the to De

on as date of which only speak the are statements they Forward-looking made.

with stockholders. the Q&A. Thank Then Steve cautioned followed analyst prepared Brian will their on presentation. statements. conclude will remarks, are forward-looking After their You to and video questions video Please presentation, put not youÂ [Presentation] reliance our undue by begin from we provide

Stephen Girsky

we hauling is plans morning, crystallizing. fourth lot IMC freight. and trucking Nikola trucks and marine about our full is Logistics, Welcome electric are the industry what about it's Sons, what for everyone. hydrogen XXXX media it as partner, poster, working States, cell United Container. Previously, and production What call. quarter all fleet the towards. good of a execution.Â Our includes are the list we've social Today, earnings and a fuel a mission our decarbonizing and strong operator our independent time and of The Thanks,Â Dhillon, in business update year to in operations and Biagi long-standing XGen/Duncan Bros, the largest an Coyote fleets fleet company drayage operating trucks frequent are shared is

not we XX%. and quarter, finished for trucks, As to if cell in sold we available California. We was notably, and XX trucks, ship remaining electric to sold selling as we could X behind end said have part hydrogen for user every accumulate QX We vouchers wholesale fourth we constraints.Â Additionally, dealers reserving the with sold supplier every ended demos commerce for continue truck to more it. dealer a designated the truck customer inventory. and January, stock fuel inventory, HVIP Nothing no during had built testing in goods

trucks, January For leading were requests the of share hydrogen market and a [ in XX% a which in for mover cell there issued position and ] the first advantage. voucher were our XXX XXXX to That's fuel through tractor vouchers, in vouchers testament Nikola. XXX from XXXX requested California, of

fuel combined electric period. same truck the for about cell vouchers. Another all and fuel interesting than hydrogen electric more cell truck on fact There that battery in request voucher OEMs are our HVIP other

and cell electric with We our trucks hydrogen focusing have a highlight Canada regions on like clear tailwinds market fuel solutions. infrastructure and California plan, for strong

end-user in end-user on track end-user first believe X.X QX returned, these revenue currently we selling to Once electric end we the again.Â The and QX. exceptional. to and late be truck, our undergoing initial will BEV all for battery been Our which trucks being have the We are through battery with by nicknamed electric is revised enhancements Coolidge will the QX trucks new begin or back returned been retrofit have updates. hands software inventory of battery validation existing trucks packs, trucks early driver in get results fleets remain and by testing

highway [ infrastructure $XXX.X highway. cash to in expansion unrestricted XXXX, Customers fueling position footing our is additional our position business liquidity on approximately leadership continue hydrogen daily. later we strong and Ontario Our solid are hydrogen And cash call, Southern improve decrease team. than plans station for of we first our by announced and the our cutting modular will used our doubling to the In share million California. at more with our We recently in the fueling ] spend, station XX%. a opening Ontario,

is Our QX position cash quarter highest been since it's unrestricted a end at the at XXXX.

further Mary improve such and in President talent top-tier position CapEx Furthermore, footprint-related world-class XXXX.Â We leaders management the attract Coolidge, all have Ole to to continue Experienced team our for We remain This down in we use new Hoefelmann, financially experience. continue moving bring have liquidity cash Chief discussions in is haul. disciplined. as team completed us and effectively urgency and expected Officer to Officer, a relevant our and we CFO Energy; experience place with a bring long with keep which understand is Chan, Chief Financial companies which other ground. to need potential whose new listed They forward. of the as to Operating operational and in publicly of includes break are roles the

Carla just track with and Board of Jonathan Carla for Fortune TravelCenters last over organizations energy equity, and start-up leading joined. and manufacturing record in we December, Directors expertise We added Perche, have scaling a week, a America across of X trucking, private entities In government former successful CEO Tully energy. deep XXX, decades. has of and

experienced developing to getting this global the revenues the the you groundbreaking hydrogen group business, optimizing thinkers about blocks highway. market it's makeup was bring at and and operators the proving highly about we on If costs. and Board, of entrepreneurial growing is look begin of year building a could who companies.Â QX out are This field, deploying technology coming scaling our to the our

XXXX.Â Beginning come in the Now and about cell business our to fuel with on discussion to truck. what's hydrogen updates electric a

I the in and we reserving There trucks trucks and and during call, fans fleets for These operating been from trucks XX spotting California XX and have fleet delivering customer As X the demos. in of QX, hauling several freight. are testing FCEVs, earlier captured built and operation. Nikola online production posts commercial the Canada, stated

tank successfully is here that Long XXX to of Port back Beach, handle truck So the refuel truck market. kilometers could truck That one journey proves zero-emission our to Container drove the Celsius it to mention that the Z-emissions from about Calgary full freight HYLA Port round no to serve completed XX Edmonton the back journey. all the other with XX% and to journey Oakland drove Port hauling is can anecdotes. XXX and the of few after and the route outside. Ontario truck mile Alberta's a their busiest of Not are they Coyote probably refuel.Â MTA's Oakland. trip degrees with while transportation There then the from minus corridor to was

voucher vouchers, power continues feedback engineering ride been fully more HVIP loaded without the the facilitate cell dealers limit, we trip and FCEV no truck until smooth to are to we now. has our fuel team pushing electric X,XXX far fleet truck you the being been California. nickel positive that any trials miles is alongside for were have driving problems.Â Initial to there among a sales. date As Alberta we trucks of XXX of overwhelmingly to had and November, this requested work our approximately still our At able X with the in hydrogen requests day than other Nikola. time, XXX to highlights, complete are sales aware, Last And as team told which XX% in in

As of January of are California, the for which were requested our XXXX, there XXX of XXX end vouchers in truck.

them not since vouchers our product.Â This requested and been helping project. their the market realize first-mover last for XXX testament the science having a the sustainability have leading of of quality goals, is additional ground, strategy the fleets on position of advantage, our a our of call, It's to sales our truck. boots XXX% So

Our time.Â Progress our fleet driving happen track on to end our road the of production making trucks truck on cell transportation remediation. return mission battery hydrogen is QX. electric remain truck a one to heavy-duty the to by customer we on are first We today, the at continues and fuel decarbonize operations

Arizona to throughout is have by fleets back all sale. plan end-user and QX have complete available Coolidge, for and BEV in upgrades Our the And will facility their respective BEVs QX. our trucks end at we of to additional X.X QX, the

beds from XX in Coast. additional the vouchers XX up BEV dealer the continue the voucher to on for last January, end accumulate We are the for on requested of purchase orders XX at to addition from call. The quarter's HVIP requests East one with

with are trucks all purchase and prior fleets team to secure discussions have in spoken inventory sales in to resuming for Our production. Nikola dealers and on additional orders to track further are

better I only As begin the outstanding include immediately enhancements, and to and user-friendly air a the to more improvements, departure maximum additional charging expected an feature, campaign readout service drivers which fixes, vital time connectivity truck augment a the BEV we number scheduled X.X updated we're we've information when not viewing, some ensures more truck's earlier, but capabilities.Â The addressing are the because and of are be over calling said app, battery improvements experience. over packs replacing instrument root available others made updated mobile a for a charge their that

also battery improved capacity expected the to lighter, new which higher packs result are to expected features, in and trucks payload is be for fleets. addition In to

station one and options, do.Â Moving the X we're all basis electric That's product. are opening we California, solutions per network battery business, up fuel trucking. trucks modular for announced Class Nikola developing a truck a the committed and up fuel is fueling powertrain zero-emission providing XX fueling the to keep Customers We hydrogen freight. utilizing on of platform, station on Energy to which we X day. to month, Earlier to the Ontario, in charging hauling first HYLA. daily our can and this are

California an go day. fueling Southern utilize their situated ideally collaboration able trucks will station secure sites back. at to to customers to new Bay a and customers Oakland team mentioned, sight locations the sites modular near named in The refueling be refueling work These now in to strategically serve with line and we Fuel per up multiuse FirstElement located, have with are California, Haile we In Northern as is assets. Nikola California, planned Element Oakland, HYLA X Additionally, the partner. which refueling The locations opportunity authorized being port near solutions we secure providing from to the heavy-duty XXXX.Â As Southern to fuel additional additional Sacramento. first right and X Area in have of additional hard Northern of enables XXX to

In flexible hydrogen look developing intended planned up the HYLA station the team the the modular is surrounding addition element, Nikola not stations fuel need in to the a discussions fueling new while station solution, to fuel to priority to of to infrastructure highway other is fuel a planned fueling the assets step top in geographies first hydrogen are efficient assets.Â The Ontario rapidly well enter us the prior their penetrate ensuring in density at We and can markets truck Modular the of of be network infrastructure area time of us with and refueling are customers as in markets redeployed commit and is trucks. remain development First strategy to existing interim to HYLA a fuel in to as to utilization provide deliver will ensure density we and believe truck The demand. or hydrogen permanent to a to high amassed Upon the allowing location are is cell operators modular without the permanent underway, underutilized nimble stations support capital the permanent solution hydrogen ones. with cell hydrogen electric bottleneck completion and is new in new the of refueling as develop XXX% HYLA highway. allow we is infrastructure, modular new customers built. electric serve station assets.

passing confirm happy to Brian are record, time, financial of has team to our our the than it truck enough offtake results. We to cover secured at this energy to support more XXXX plan

Unknown Executive

CapEx we QX and trucks electric quarter visibility to use the XXXX, Steve. electric cash and cash ramp sold up burn spend the million million to fuel rate our strengthen deposits, will XXXX. excludes and in initiatives, million. cell stock-based in includes cash trucks less in $XX of you, recall dealer of prior have than of XX working electric to Service $XX.X while that and compensation, first the the averaged of to $XXX which Net for million depreciation position, cutting second XXXX, the business $X.X for certain balance in due per we battery net increasing hydrogen reducing HYLA truck and our impact XXXX was XXXX total incentives agreements. capital first liquidity compared on fuel per cell of of $XX other Thank as continue continue activities half our XX truck That supplier also dealer half half year-end.Â In the revenue impact returns and quarter hydrogen of XXXX in to on focusing revenue core we truck rebates, to activities, by unrestricted cancellation loss by million. Throughout operating revenue used

pack on $XX.X supplier $XXX.X due expenses year negative XXXX deposits. BEV estimated components.Â Total of the BEV million for battery compensation losses stock-based the $XXX.X million, truck recall, million of outsized and Our $XX.X to came at a for $XX.X was million million million gross the recall reserve for electric battery inventory loss write-down in other of which and XXXX and loss includes $XX.X and in gross operating costs in includes

to and came a cell [ the expenses the during million the in and of like We'd the for little quarter. at $XXX.X million for Net interest the versus which expense the were million basis provided third interest convertible reconfiguration completed noncash range in Excluding $XXX.X year from continuing also operations substantially Net year fuel expense is was the $XX Toggle April color on the of year, loss to a totaled and loss million, the $XX.X footprint notes full hydrogen conversion XXXX a Nikola on provide related onetime to operating truck XXXX. as supplier online. year for bring we from for totaled deposits, electric full manufacturing our on million XXXX. total within ] full $XXX.X elevated line previously improved expense full non-GAAP production guidance

cell into results. the While on carry in over mirror.Â Moving the we the vast expenditures truck majority of expect costs are XXXX hydrogen tooling XXXX, fuel these some rearview to electric to QX

incentives, to which lower-priced of During hydrogen a for cell was the $XX.X XX ASP. fulfillment Net $XXX,XXX ASP of truck million. total trucks down rebates revenue delivered quarter, we due of fuel electric dealer the and deals, drove number of legacy

the like as We the cancellations expect dealer strategically includes inventory and would low repurchase as economics our and to truck strong sales network their of like approximately cell our California deals and and XXXX was ASP a to today. are from $XX.X fulfilled. was due transitions some hydrogen increase legacy $XX.X the spend mix BEV We of QX in outsized continue position reversal they unit refine high Canada.Â Gross away losses throughout in we dealer revenue per as million, quarter accruals. service per Net to revenue of in additional from geographies and insight tailwinds million for of fixed and to the truck current fuel show gross loss cash margin true into negative resulting electric some production costs noncash and Gross XXX%. variable volume, provide and

approximately costs variable and duties and costs hydrogen and truck. fixed variable can cost accruals costs supplies, on $XXX,XXX taxes. manufacturing labor, cash goods a per truck a at as materials cash into we manufacturing costs basis, of variable bill separate On of cash our include unit per such inbound production Coolidge, and buckets: fuel in direct cash Looking freight were amortization. final cell cost, Variable electric X basis, depreciation

come fixed cash revert as throughput freight spend. down overhead air these and decrease cash basis, expect supplier include our cost indirect ocean-freight as costs and per primarily per On bill $XXX,XXX. a to normalizes.Â Fixed from costs back of materials We were vehicle to labor cash facilities unit

we unit experience We a a volumes. on per of on will production fixed basis operating expect we the as cost benefits cash leverage scale

basis cash per XXX% margin. negative cash a are we on a So truck,

license Coolidge depreciation net and and of goods on of basis, in include tracks D&A amortization write-downs third and inventory, were items unit On loss an the of The a D&A on resulting track, accruals IVECO component realizable equipment. the like per S-WAY cost XXX%. gross the per of facility accrual negative a manufacturing margin value $XXX,XXX warranty

later insight where into to provides cash half improve where to to basis margin as and As million insight a fuel achieve higher sales, as we million of We a truck of we expenses. cell XXXX we a QX this lower stock-based you bill the to increase gives materials year. provide give Actual production, the and our expect in basis.Â Since to Nikola's in operating includes with share $XX.X a losses will operating operating continue guidance.Â Moving as hydrogen our stage our expenses second to we spend within provided wanted we at of in the of came looking better we that production. highlighted and of accruals above of items Steve volumes margin delivery on we cash P&L reporting have $X.X is on volumes. decrease call first increase ASP, early there are range on reserves quarter on compensation. when in guidance and and lower in performance million expect at be per deposits unit leverage some and operating truck electric included contribution supplier production are the $XX.X the substantially many believe the measure production accounting leverage Total for per clear cash this runway

decline million continue to continue as used our and cash supplier bill Excluding Cash our financial million, average reductions foster low use. expense see we expenses reduced for below in of We loss $XXX.X the we QX material use came continue cash as capital manage to target. anticipate was to guidance and in costs $XXX deposits, of below operating will on effectively. on end working discipline our

we of million, QX XXXX. a QX million ended an secured with and QX from Lastly, since cash cash under highest our of $XXX.X total balance of improvement unrestricted $XXX balance

Stephen Girsky

Brian. Thanks,

truck discuss is sell XXXX our demand we we build. the Let's outlook. and in position starting believe can year constraint, as every not can a We're strong a we

XXX are year from some At are fuel ramp-up guiding electric new upside We to There on the in supply. electric on this truck trucks. supply truck for truck plenty could of if experiencing refueling dispensing the capacity full time, components and hydrogen cell range the we deliveries in XXX production alleviate assets. modular be to and cell components the and we of delays have suppliers of constraints hydrogen hydrogen in Coolidge both fuel this range as assets

we can where believe selective market our working opposite. in with we coming with the on continue you push chain customer down, always, and with Contrast will are to be current price is inventory provide supply coming higher. we is we the the doing team orders quarters.Â With current and greater diligently and EV suppliers, than updates high demand light-duty As are supply, this can our prices

expect early the to deliver at of electric trucks or the XXX the in return will trucks, to QX completed we XXXX. late battery least QX On end begin we have users These after in XXXX. deliveries recall

and dealers that continue through team submit We HVIP sales are the sales pipeline our orders. for working encouraged purchase additional to is vouchers,

as to range year full be minimal million. we revenue to the just $XXX year, and and hydrogen million deliver are in trucks the We guide, the we other full million. associated develop the to and million costs beginning be we revenue think $XX $XXX hydrogen of between year expect This hydrogen expect to first will $XX and highway.Â For for XXXX the truck be total revenue

full We and the on the low negative expect be end. for XXX% end guidance high to delivery range of in year on negative XX% gross total the the margin of

helpful On cash costs. the be as truck initially side, will lower incur production to not as burn volumes will the we many

year. contribution to margin positive of see However, a later we in do the line sight cash achieve

this elevated are reduce to we we time, that deploy about technology. to there are bill believe As we volumes as ASP costs, increase At believe noncash now of Brian we right earlier, in up be new production talked ramp and fixed continue accruals if and can can some flows transition $XXX the At compensation. costs we $XXX a costs material and trucks truck cash positive margin to on that XXXX be to million million produce million, every of fixed expenses a XXXX. manufacturing expect produce operating and of we point, will cash more as stock-based in into selling begin to including operating range more $XX contribution covering expenses.Â We position

$XX the spent refueling truck expected hydrogen is XXXX reduce investments for fuel will biller and tooling CapEx supplier electric modular to million CapEx to infrastructure, cell Our on predominantly be highly $XX materials. million.

million. between For based the $XX XXXX, electric XX expect first availability, we quarter million to for XX fuel hydrogen revenues and cell supply and of deliver on trucks between $XX

million margin will for expenses be $X.X be approximately QX Operating expect expected $XX are compensation. negative $XX.X be to stock-based million to million. gross includes XXX% CapEx for between to million in approximately QX and We will QX XXX%. $XX.X negative of

our truck and close We call, complete engineering battery validation fleets. just interest I'd recall cell government from fuel about hydrogen truck electric suppliers, focused expect so year electric operating to reduced and to as are been the officials production.Â To interest and partners on to as talk products the activities we decline in and the There now expenses and to the throughout services. further has we Nikola like much

than walk-around the evident know we're hydrogen where XXXX, brought excitement real. more that We said Bosch CES rights electric from at we and and X all. were tours fuel hosted was They and Nowhere cell and gave people reactions by at for trucks.

While have cell Paradise Class floor, trucks and on the the future fuel was XÂ hydrogen truck electric only driving Road. one other down attendees showroom their up OEMs our

refueling and first at We are modular station. products, our the freight building falling

phase we us are want our operation in refine and those to we're success. you are with I here Nikola's Operator, and inspires to remarks. have passion said your model, for product to business We work faith all who you to your journey each and them doing the fleets in putting execution time, us, we to future. for with your prepared your what trucks to commitment pioneering going the in and line analyst collaborating Nikola's mile, thank our also we're have questions. concludes Thank open entered again This of do.Â Finally, to our ensure our support product please while

Operator

Instructions]Â Our [Operator Davidson. Mike is D.A. question first from Shlisky with

Michael Shlisky

that there was trucks dealer getting -- from to stock XXXX sold And to you guess to for dealers are demand finally point curious the there almost planned were that have noted that? kind where a entire no taking be and inventory. I fulfill output for you'll I here? requests was able had You inventory whether Or is customers of

Dhillon Sandhu

customer filling still now. are right We demand

to We but a trucks. every have have At something vehicle before dealers I actually demo that, to order. attached going point, stock like to they'll able be customers while some physically think it's will or a be

Michael Shlisky

near-term resolved? the that get the to a good [Indiscernible] you production. when on one sight quarter a then level, in have component mentioned if you or constraints, might first And resolve that I'm had Okay. curious here few those the

Dhillon Sandhu

Sure.

resolve. resolving So fueling I And faster. also side on they're to with truck the the starting resolve on say side, would actually to the a little truck side, starting they're -- the

Michael Shlisky

last one Okay. And one me. for

Arizona, corridor. California was the point, plans transition any next was very market You of ] with you and it the in the infrastructure help and bring the local to slide after enter then that interesting. have had do about mentioned market there into this you plan manage kind [ to ease hydrogen that for permanent core outside At a how interesting of an your

alluded to You Canada. had

is Midwest. here? in the in pipeline offtake within go here be if California some lot the still got of Or next more I'd like you've to the there infill X? over curious or year You've got a

Dhillon Sandhu

And move the said, where go in We okay? we to X market But then is to California? out the in the position a We've incentives and to with ports Sure. serving this We all way. are. it other plenty Canada in move trucks need opportunity. There's Will California again, and us fish work. the you this trucks mission. the about them. Canada. best to is XX,XXX we be at sure for I'm of move density, want think best We We California those from a Right to there'll like make big look There's are supply are markets. got California. to through building X California. this build now, year, markets. be as fish Yes. right now, right eventually We density in

Operator

next Ben with question Baird. is Our Kallo from

Ben Kallo

so work far. the for Congrats

port, talk Just -- more you you're just the and mentioned you the working developing opportunity that. on the there could about on how

I close opportunity there. and that's know So lot of a sense a makes

Dhillon Sandhu

Yes.

and to And ]. were. frankly, but that's a where up went So said, X XX,XXX that's Canada, some XX them and -- California, of fuelers X the trucks markets, attacking most opportunity the the of trucks, for an tens Like orders are those ports biggest a going. These handful us. huge. we're our it's most ports I enormous think of went serving our to it where [ are We was

guys guys. these big Okay, These here. were small weren't

not ports, just California the opportunity ports. Southern So California big and only the it's the Northern way, by

week move I It's XXX. able a going a was be First and opportunity element us last -- trucks will day. to for we to could to able be with element at XXX-plus Oli. They're fuel big First

and So Northern in we think huge and Southern there's California connecting a both ports them. opportunity

Ben Kallo

that? trucks? think you like buy of as then about the compared me or X, know buying how when Just cadence about and XX And electric we pilots you the customers do the on all or think full different. the -- like do they're they do and fleets infrastructure, to customers, are they I X think the how pattern

Dhillon Sandhu

Right.

X. X So sold me We something. first, fleets XX let trucks correct trucks and to to different X

about more. and -- them trucks wants XX XX the were one So way, are the who by why these not they ask bought When of that. been you buying people He's public fuel others truck? Their many us cell Xx the they refuel interested? is it's can electric and message almost as Why range the are truck faster. same to gets weight and a basically

Operator

is question Research next Partners. Our from Jeff with Kauffman Vertical

Jeffrey Kauffman

is the you battery had and really update. the couple guidance into for of The cash That on back customer a flow Could that a helpful. I field, electric of up out thank P&L of was little showing hands detailed the the guidance questions. part that? and give getting in there us Well, for through Is you clarity just in running statement? the in 'XX. the only 'XX that cost trucks the

Dhillon Sandhu

that? want you handle do Brian, to

Unknown Executive

Yes.

we write cost initially. to the So had up

million, that so we've cash we've spent about in perspective, already $XX QX. a incurred primarily million was From $X So far.

of QX. be the most and will in cash So impact QX

Dhillon Sandhu

that revenue selling, talked those XXX for guidance, trucks trucks throughout The additional the in we're that be we will the the about year.

so QX will QX, We or those the early expect to delivering hit P&L. those late start

Brian A trucks reserved that, a on Of them. on to, warranty that accrual. the of the timing lot actually be alluded close those will spent sold retrofit the we $XX sold of timing to be packs approximately will million. close we pretty $X liability of spent material to but will spend As pretty million the trucks --Â retrofitting ultimately, actually those be to a

net cash So some million now I which outstanding AR. expect to inventory sell to we the $XX battery expect as minimal we quarter, be a spend approximately and -- of think million And the the last electric contribution that. on we cash $XX is the total we positive for million, collect a on spend impact we $XX alluded of through

that's So maybe of a now, $XX the instead million revenues. but is hit for $XX and you P&L should it think million will impact number that about how they

Stephen Girsky

of most Brian year the half of less first the as And the of we burn year, costs half second materially cash half to, to the in expect than are in the first other alluded year. the be thing, of cash the these Jeff,

Jeffrey Kauffman

is out that Okay. fuel the in or of cell you're the there revenue thinking be only maintenance other And we're other when that fuel we're about now say, vehicle of on the to, there about related them, trucks figure? are revenue sale or revenues or generating then talking should kind the selling we that oddities that

Stephen Girsky

that So some We're We $XX most piece there. of $XX is said there started energy of this big revenue the getting just number. around to million it. in small is that It's small. energy. That's year, million

Jeffrey Kauffman

Great. final then question. And

$XXX have it booth ex payphone of looks mean because gave here. with capital if you phone might I'm the the burn, that my But depreciation, walk again and like fuzzy you're ex then be somewhere at that in before going year? of stock-based kind does comp, the my [Indiscernible] raise guidance I million a end the to little cell So through a cash here to math low

Stephen Girsky

Yes.

the highest more unrestricted had the in years. burn. that We have X -- cash we listen, we've actually cash -- have So than cash

have Second we half is first could and going could than to assets we materially be monetize. that lower sell we half

it, what we'll we need right we do we do out but for need it to sure. need to So when That's now. figure do don't to

Operator

Lewis Greg from Our next question with BTIG. is

Gregory Lewis

-- then bed were that those just pack quick, in saying? largely that just inventory what is already XXX referenced, and trucks up those need you've are Real you battery the it,

Dhillon Sandhu

Greg. Yes,

had believe I -- we Nikola XXX in about trucks the So inventory.

will contribution So sheet, of balance can hundred a our and and ASP, of is them as right $XXX,XXX those are substantially those the sell be -- lower. off about positive coming you cash for, think we'll rectifies about cost

Stephen Girsky

country. in anywhere the will Those sold be

Gregory Lewis

about with talk that one on the to of element. next Yes. first it did the have like you Understood. and getting hydrogen, up want the network. I looks kind one running, Congrats

XXXX, we a down think like kind still road? want targets, say probably Are mid-single-digit kind growth, we years of that longer-term to maybe path X, about the to of kind the on were range, targeting we kind of As X realizing I of midyear. XX, out that

Dhillon Sandhu

digit Mid-single range?

Gregory Lewis

fueling of terms stations? In

Dhillon Sandhu

target. we're on think I

team moving at sites his sites are a the target. looking six it's line where sight We of and have good funnel. still a in on demand Oli there's new need in the Greg, we big so every X South target. North. It's day and another modular a

Gregory Lewis

And Great. Mike's one me chain the around obviously, just being issues drag. for -- a supply more question then around Okay.

through kind here we're QX, midway in As ramp starting we as the cadence of line the chain as have sit a supply realizing into about we can kind fuel any better deliveries, walk cell think sight just on us of now that through out we you summer? to look of

Dhillon Sandhu

Yes.

And end. things -- obviously, sounds up, ease So start to good the if XXX we'll XX, XX, farmers math, that. XX, like accelerate move we'll low on

Operator

As [Operator a reminder, instructions].

with from Deutsche Bank. question is next Dong Our Winnie

Yan Dong

you I that any on positive there? previous target update sort was wondering maybe of the if on can was units [Indiscernible] about and you I talk associated XXXX. wondering if get maybe to perhaps think, that's update have you I any that EBITDA needed been,

Dhillon Sandhu

repeat you a question? can your breaking Winnie, there. was up It little bit

Yan Dong

now? Sorry, hear can you me

Dhillon Sandhu

Yes.

Yan Dong

indicated was for that EBITDA units to there's that positive target was get talking I to goal? may the any XXXX. perhaps any I about if you needed Yes. wondering associated then previously that updates And be target? to

Dhillon Sandhu

here by a volume fixed that, Once to We cash dropping So contribution truck. on do do we cash margin strategy to the costs. that positive is it's aspire more and margin the cover year-end. -- about accelerating to the on get again, variable a

have So as will to year, margin next get positive. that to we ramp positive and of a volume to increase on EBITDA both those, of we sight the basically cash later into us this we -- drive contribution right year next year now, line the as get

here. it's on make truck need it's to then -- So has learn, the win. whether don't getting then the on about the That's strategy. you underestimate those the on you and the the building fuel, pivot win. learn, working getting we been through make whether on the Get That's go-to-market, that the the field, inefficiencies and field, This here. make, field and adjustments all we it's are strategy you on adjustments whether

Yan Dong

the different maybe separately, I a post then comment of on BEV think, will the sort profile Can XXX the this had one using, you're previously. deliveries, you maybe pack like, normalized And on perhaps maybe ] [ like side. margin margin, on versus units you the of gross battery look what

sort understand the margin wanted to targeted for So that of just profile product?

Stephen Girsky

Yes.

now We're So is guidance margin right full we BEV in guidance a there. basis. out specifically breaking gross margin not included that gave, the on year that the

our trucks we to through. costs. that aware, will a and new additional lot in require trucks packs you're we're battery of labor inventory, Those As only going XXX approximately direct sell have then some

So we those trucks do on year. cash this contribution expect a positive

have we to as that continue in you guys to potentially QX not start year, next we'll get we gross or closer rebuilding and when QX provided them update margin guidance, we However, target frame. time

Operator

no I Dhillon back questions. questions, [Operator further investor Instructions] over hand the will now to call With for

Dhillon Sandhu

how We plans operator. for investors who we forward can the positioned itself up media to Two, start be is what are true? a battery Thank series question, XXXX? social entering are the you, market; three, Nikola the the than platform, questions first does hydrogen X and better can through of of what off other Nikola is in let's and retail summed our differentiate electric how topics: into what X XXXX? the which from manufacturers investors majority received One, from Say seeing Badger are Class and look with what Steve, program, happened with on competitors

Stephen Girsky

business Thank include do. is are business day, sales drivers costs. we we about were price, we fuels to and on you, and we deploying said pipeline executing Since what XX and products. average of our our sufficient execution, validating heightened XXXX needs Dhillon. fuel trucks model we've strong Every our Near-term scaling by our optimizing revenue growing higher customers. QX, electric in meet modular our cell sales hydrogen announced we in had to the going interest delivered

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Dhillon Sandhu

Thank you, Steve.

is positioned the and we Next from better how are what topic competition? differentiates us

Stephen Girsky

fuel appreciate What available hydrogen America. electric fuel Biagi, out the trucks service of range, to features, we than add in Customers on the to to and now. as The which biggest We've driver deliver over our sets features, freight overcome technology them range cell truck in These to hydrogen more to first-mover Containers to of speak. is difference customer like embedded first will electric even data hauling smoother Class and electric show ride and right that bay being the radius, capabilities over-the-air hydrogen customers are the Logistics,Â XGenÂ and that manufacturer customers and are prefer the to the the tighter extended fuel be advantage. cell cell has the more experience their our extended truck X software-driven a assistance IMC We turning peers. miles. we road. is MO up allow keeps updates a apart truck North many Coyote time customers XXX us short, make leader features challenges from better.Â In over benefiting its more market is updates,

hydrogen competitors. plan, fuel for out versus bear cell focusing California market strong our will like on clear Canada HYLA solutions our and Our with electric regions tailwinds trucks infrastructure and

Dhillon Sandhu

media turn of will over the some regarding the I about to posts And recently.Â Britton, is one Great. this the social topic Badger third you.

Britton Worthen

and for and headquarters what employees, It program OEM passenger good and was with late different years, we Badger Dhillon, accomplished in development, team Badger Utah growth days today part been produce predicated proud reservations morning. eventually Nikola to development being been validate, on company than were misleading manufacturing and recent of in in is deposits because taken an in built people trucking Badger from very completed The in its an was dollars posted in partnership have company overcome X X,XXX research the been I've program a a were XXXX. some always more the endeavor and There did companies would to order billions complex program Milton. vehicle programs Coolidge, Phoenix take After all initiated of do extraordinarily facts.Â The engineer, to that announced prototypes Trevor typically Mr. and with has X On undertook heavy-duty as pursue and not XX, and that to vehicle why Badger. passenger for not deposits of I in Nicola's and you, a vice a the a is just from Milton's comments very we few trucks. September heavy-duty build program. XXX XXXX, After trucks Thank member the decarbonize more November versa. This were potentially company XXXX, this from Badger and that industry. some and Class the videos returning like Nikola taking work departure we have by Nikola address confusing about X I'm facility than distribute.

our assets In summer time, X that struck as Ember Ember, heavy-duty no on purchase our the business to the a on with to addition needed paid XXXX. down the market have Milton any they an agreed value we to time. core our anything to into Nikola the with several sale. allowed back we a stated It at were directly or Nikola. to of the reputational, this allowed that because note press Sparks X and way that brings by developed of brought operational payable This with semi-trucks. departure to back a to that powersports they Nikola to us majority bring the executed Class property the Badger and company. were claw damage effort Nikola to assets desire allowed and we CEO to EV-related Class money had note fray, to Badger that company, ever shareholders acknowledged be stated and Mr. interest these between the the which from When focusing in retained Based were release to be on to XXX,XXX as which of XX% stay that was have and expressed and which Mr. representations prototypes.Â Mr. included certain Milton working caused at felt Mr. capital some the Milton's by so, not physical to agreement Canon. Ember, a do and back owned a Nikola over to intellectual a focused products lowered and related powersports company and to deal sell trucks Sparks not in was to agreed market. Sparks legal Mr. and Milton for Nikola given meetings upon assets. the Dave he some hand this the enough possible X on these Cole in market to that to his their Canon products Mr. bring stay owed Mr. from since assets, Sparks plan partners comment discussed day in shares was Nikola Milton bring agreed Mr. zero-emission work and stipulation.Â Over Cannon to Mr. Sparks retain part strongly at its and that Ember, Nikola or years Mr. worthwhile involved indirectly left specifically Mr. if the on financial Cannon involvement company would worked X.X and to that Mr. proceedings above

is on all at that. just that in that Milton trying X.X company. have you years lost we done has Mr. this have heard the past on happened after is us not to of The Nikola all irony take call, now the control As

better control away to to for our We wrongful to to Nikola, we to far and Mr. related relevant of continue will push a won we he conduct. are and stockholders clean his management than legal believe take directors attempt energy, the continue efforts Milton lack all pursue that to our related any directors and company.Â We makes experience $XXX who back against avenues slate million run a against clean tech to arbitration award of

arbitration confirmation, we confirmed currently in court working that a from federal opposed on the that are for Not Mr. but request Milton decision award to surprisingly, have court. waiting judge. has federal are We

openness commitment our remain I of time honored organization a I with our made Dhillon. all distractions. transparency unnecessary has a eliminating stockholders, back it part turn morning, to now government entities, mission company your to and am this members to partners Nikola and be our you and day Our this Thank every employees. team like to and for and committed

Dhillon Sandhu

That our Officer, Legal today. remarks your to Thank joining. for you concludes you for prepared explanation. Worthen, our for Chief all Thank Britton

Operator

conference. conclude Thank today's you. does This

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

Nikola (NKLA) 22 Feb 242023 Q4 Earnings call transcript