Nikola Corporation (NASDAQ: NKLA) shares fell more than 10% after the designer and manufacturer of battery-electric and hydrogen-electric vehicles and components reported financial results for the second quarter of 2020.
A major obstacle in the second quarter has been the COVID-19 pandemic. The global pandemic caused disruption in Nikola’s supply chain, but the Company claims that mitigation efforts are underway to reduce the resulting risk to production timelines. At this time, Nikola believes that, “long-term objectives will be materially unaffected by COVID-19.”
Nikola reported steps towards achieving this goal including completing a reverse merger with VectoIQ and a related PIPE offering, providing an additional $616.7 million of cash on the balance sheet to support Nikola’s further product development, and the buildout of manufacturing infrastructure.
Earlier this June, Nikola signed a purchase order with Nel ASA for 85-megawatts of alkaline electrolyzer capacity. This purchase order will support up to five of Nikola’s hydrogen generating and dispensing stations. At capacity, these stations are expected to generate up to 40,000 kgs of hydrogen fuel each day, which would support up to 1,100 Nikola Two FCEV trucks.
“In the second quarter of 2020, Nikola met predetermined milestones on our journey toward becoming the zero-emissions transportation leader in the global heavy truck market,” commented Mark Russell, Nikola’s Chief Executive Officer.
During the second quarter, Nikola and Iveco began the buildout of an assembly facility dedicated to Nikola Tre at CNHI / Iveco’s Ulm, Germany Manufacturing Complex. Once completed, this facility will be capable of producing up to 10,000 trucks per year, and