Industry Overview - Hydrogen power is considered a green alternative to fossil fuels, produced using renewable energy sources like wind or solar [2] - The hydrogen fuel cell market is projected to grow at a CAGR of 30% from 2024 to 2032, while the hydrogen vehicle market is expected to expand at a CAGR of 45% from 2025 to 2037 [4] Plug Power - Plug Power specializes in hydrogen fuel cells and charging services for forklifts, with over 69,000 fuel cell systems and 250 fueling stations deployed [6] - Revenue increased by 40% in 2022 and 27% in 2023, driven by acquisitions that expanded its cryogenic equipment unit [7] - Analysts forecast a revenue growth of 25% CAGR from 2023 to 2026, alongside a narrowing of net losses [8] - The company received a $1.66 billion loan from the U.S. Department of Energy to develop new green hydrogen production facilities [8] - With an enterprise value of $2.67 billion, Plug Power's stock is considered undervalued at 2.3 times next year's sales [9] - Insiders have purchased nearly five times as many shares as they sold in the past year, indicating confidence in the company's future [9] Nikola - Nikola produces electric semi-trucks and has recently started delivering hydrogen fuel-cell electric trucks (FCEVs) [10] - The company faced challenges, including missed delivery targets and legal issues, but has delivered 203 FCEVs in the first nine months of 2024 [11] - Revenue is expected to triple to $112 million in 2024 and nearly triple again to $328 million in 2025 as FCEV shipments ramp up [11] - Nikola plans to establish a network of 60 hydrogen charging stations across the U.S. by 2026 [11] - With an enterprise value of $338 million, Nikola's stock is viewed as inexpensive at roughly 1 time next year's sales [12] - Insiders have bought 15 times as many shares as they sold in the past year, suggesting potential for growth in the hydrogen vehicle market [12]

Group 1 - The focus has shifted towards offshore drilling, supply industry, and shipping, including tankers, containers, and dry bulk [1] - The fuel cell industry is being monitored as it is still in its early stages of development [1] Group 2 - The individual has extensive experience in navigating significant market events such as the dotcom bubble, the aftermath of the World Trade Center attacks, and the subprime crisis [2] - The individual has a background in auditing with PricewaterhouseCoopers before transitioning to day trading [2]

Financial Data and Key Metrics Changes - In Q3 2024, the company reported gross revenue of $33 million, an increase from $31 million in the previous quarter, primarily due to higher wholesale deliveries [29] - The company experienced a gross loss of $62 million in Q3, compared to a gross loss of $55 million in Q2, with the return of BEVs being a significant factor [31] - Unrestricted cash declined by $58 million from Q2, ending the quarter with $198 million, with cash burn for the quarter at $162 million [31][60] Business Line Data and Key Metrics Changes - The company wholesaled a record 88 hydrogen fuel cell electric trucks in Q3, up from 22% last quarter, and continues to dominate the heavy-duty fuel cell electric vehicle market in North America with over 90% market share [8][12] - The average selling price (ASP) for fuel cell vehicles was $361,000, down 7% from Q2, but the average ASP has held at approximately $370,000 over the last four quarters [30] - The BEV 2.0 has returned to the market with positive feedback, and 19 end fleets have accumulated over 715,000 road miles since its return [20][24] Market Data and Key Metrics Changes - Year-to-date, the in-service fleets have grown 78% to 16 distinct end fleets from 9 in Q1, indicating strong market adoption [10] - The company has accumulated over 4 million validation miles with its fuel cell and battery electric trucks, avoiding over 6,000 metric tons of CO2 emissions [7] - The total number of runs exceeding 400 miles before fueling for fuel cell electric vehicles increased to 285, up 48% from the previous quarter [19] Company Strategy and Development Direction - The company is focused on building momentum in the zero-emission ecosystem and is the only OEM offering two zero-emission powertrains on one commercial Class 8 platform in North America [9] - The company reiterated its year-end guidance for fuel cell electric vehicle deliveries of 300 to 350 trucks, maintaining a flywheel-based business plan to build scale [11][33] - The company is actively seeking partnerships to support its capital needs and is looking to build a coalition of like-minded companies to advance zero-emission initiatives [42][44] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of winning national accounts and noted that customer feedback has been positive, with strong traction in the market [38][67] - The company is optimistic about the future, citing government incentives and the growing interest from automotive OEMs and industrial gas producers in hydrogen as a growth vector [68] - Management acknowledged the challenges of new technology adoption but expressed confidence in the company's unique position in the market [81] Other Important Information - The company has expanded its dealer network, bringing the total to 19 sales and service locations across the U.S. [15] - The company is making incremental improvements to its existing products and is actively working on next-generation products that will be more efficient [57] Q&A Session Summary Question: Long-term profitability outlook - Management stated that they are optimizing operations to ensure readiness for scaling and emphasized the importance of winning national accounts [38] Question: Profitability of FCEB vs. BEV - Management confirmed that both powertrains will be offered in the market, with BEVs expected to contribute positively to cash margins [40] Question: Capital partnerships - Management is actively seeking partners who value the company's initiatives and are interested in supporting the hydrogen economy [42][44] Question: Delivery trends and expectations for 2025 - Management indicated that there is more potential for wholesale deliveries in Q4 than currently guided, with discussions ongoing for 2025 [65][66] Question: Customer purchasing trends - Management noted that repeat customers are emerging, and the connection between Northern and Southern California will enable more sales [79]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38495 Nikola Corporation (Exact Name of Registrant as Specified in Its Charter) | --- | --- | |--------------------------------------- ...

Record 88 wholesale deliveries of hydrogen fuel cell electric trucks in Q3, up 22% quarter over quarter FCEV Fleet adoption up 78% year-to-date, with 16 end fleets deploying Nikola FCEVs, 32 distinct end fleets across both powertrains Expanded dealer network for the first time since launch of the FCEV Reiterating our year-end volume guidance of 300-350 FCEVs PHOENIX, Oct. 31, 2024 /PRNewswire/ -- Nikola Corporation (Nasdaq: NKLA), a global leader in zero-emissions transportation and energy supply and infra ...

Core Points - Nikola Corporation will report its third quarter financial results and business updates on October 31, 2024 [1] - A conference call and webcast will be held at 10:30 a.m. ET to discuss the company's business and outlook [1] - The company aims to enhance shareholder engagement by utilizing a Q&A platform for investors to submit questions [2] Financial Reporting Details - The financial results will cover the quarter ended September 30, 2024 [1] - The Q&A platform will open on October 23, 2024, and close on October 30, 2024 [3] - The webcast link for the earnings call is provided for access to the archived version [4] Company Overview - Nikola Corporation focuses on zero-emissions transportation and energy solutions, including battery-electric and hydrogen fuel cell electric trucks [5] - The company is based in Phoenix, Arizona, with a manufacturing facility in Coolidge, Arizona [5]

Core Viewpoint - Nikola Corporation has faced significant challenges since going public in 2020, including stock price volatility and legal issues, but recent sales of hydrogen-powered trucks indicate a potential recovery [1][2][6]. Group 1: Stock Performance and Sales - NKLA stock peaked at $1,977 in mid-2020 but fell to $450 by the end of the year due to allegations of fraud and production issues [1][2]. - In October 2023, Nikola reported the sale of 88 Class 8 hydrogen fuel cell trucks, a 22% increase quarter-over-quarter, aligning with internal expectations [4]. - Following the sales announcement, NKLA stock surged by 19.57%, adding $0.91 to its share price in a single day [5]. Group 2: Legal and Operational Challenges - The company faced legal challenges, including a $165 million settlement related to fraud allegations against founder Trevor Milton [6]. - Nikola recalled all 209 electric trucks due to fire risks associated with their batteries, indicating ongoing quality issues [3][7]. Group 3: Future Outlook and Industry Position - While the pivot to hydrogen fuel cell vehicles shows short-term promise, long-term prospects remain uncertain due to the unproven nature of the technology at scale [8][10]. - The lack of hydrogen infrastructure and high costs present significant challenges, although Nikola is attempting to develop a network similar to Tesla's through its HYLA brand [9]. - The efficiency of hydrogen fuel cell vehicles is still debated, especially compared to established battery-electric solutions [10]. - If hydrogen adoption proves economically viable, Nikola could gain first-mover advantages in the green trucking niche, provided it manages its cash burn effectively [11].

Core Viewpoint - Nikola's stock experienced a significant rebound after reporting record sales for the third quarter, despite having previously hit a 52-week low and facing substantial year-to-date losses [1][2]. Group 1: Sales Performance - Nikola delivered 88 heavy-duty Class 8 hydrogen fuel-cell trucks in Q3, marking the highest third-quarter sales in the company's history [2]. - Deliveries increased from 72 fuel-cell trucks in the second quarter, indicating a positive sequential growth [2]. Group 2: Financial Guidance and Market Reaction - The deliveries fell within Nikola's Q3 guidance range of 80 to 100 fuel-cell trucks, which raises questions about the stock's sharp increase despite meeting expectations [3]. - Investors may view the latest sales figures as a positive sign, given Nikola's history of missing financial targets [3]. Group 3: Revenue and Losses - Higher sales are expected to boost Nikola's revenue, which was around $31 million in Q2, although the company reported a gross loss of nearly $55 million [5]. - The losses were down sequentially, suggesting some improvement in financial performance [5]. Group 4: Operational Challenges - Nikola has delivered only 235 trucks to date and is facing rapid cash burn while issuing stock to raise funds [6]. - The company is currently the only one commercially selling Class 8 fuel-cell EVs in North America, indicating a unique market position but also highlighting operational challenges [5][6].

Industry Overview - Electric vehicle (EV) stocks have underperformed recently, with consumer interest waning due to concerns about range and charging [1][2] - Despite recent challenges, the future of EVs remains bright, with Bloomberg forecasting a 21% average annual growth in EV sales over the next four years, reaching 30 million cars annually by 2040 [2] Company Analysis QuantumScape - QuantumScape is focused on developing advanced lithium-based batteries, specifically a ceramic solid-state lithium battery that maintains 95% efficiency for longer periods and offers greater driving range [5][6] - The company has not yet reported revenue but began delivering prototype batteries in March, indicating that revenue generation is on the horizon [6][7] - Volkswagen's PowerCo has entered an agreement to manufacture EV batteries using QuantumScape's technology, suggesting strong market interest [7] Plug Power - Plug Power is innovating with hydrogen fuel cells, which can generate electricity for vehicles, and has proven this technology in non-passenger vehicles like trucks and buses [8][11] - The company has faced inconsistent revenue and profitability challenges but is projected to reverse its fiscal downturn, with analysts expecting a strong recovery [12][13] - Plug Power's current price target is nearly double its present stock price, indicating potential for growth [13] Nikola - Nikola focuses on hydrogen fuel cells for class-8 trucks, with a significant increase in deliveries (80% growth from Q1 to Q2) indicating rising demand [15][17] - The company is transitioning from battery-powered trucks to fuel cell-powered vehicles, which are seen as more cost-effective for heavy-duty applications [15][16] - Nikola's revenue is projected to grow over 200% this year and next, driven by fleet owners' demand for zero-emission vehicles [17][18]

Core Viewpoint - Nikola has faced significant challenges over the past three years, resulting in a nearly 99% decline in stock value, with current trading at 2 times this year's sales [1] Group 1: Company Performance - Nikola went public via a SPAC merger and set ambitious production goals, including shipping 600 BEVs in 2021, 1,200 in 2022, and 3,500 in 2023, along with 2,000 FCEVs in 2023 [2] - The actual performance was far below expectations, with no BEVs shipped in 2021, only 131 in 2022, and 79 in 2023, alongside 35 FCEVs delivered in 2023 [3][4] - Revenue figures show $0 in 2021, $50.8 million in 2022, and $35.8 million in 2023, while net losses increased from $690.4 million in 2021 to $966.3 million in 2023 [4] Group 2: Leadership and Financial Strategy - Nikola has had three different CEOs since its public debut, and its founder was convicted of fraud in 2022, contributing to instability [4] - The company increased its outstanding shares by 278% over three years to raise cash through stock sales [5] Group 3: Competitive Landscape - Competitors like Daimler Truck and Tesla have ramped up their electric semi-truck deliveries, posing a significant threat to Nikola's market position [6] Group 4: Future Outlook - Nikola aims to differentiate by increasing FCEV sales and is working with Voltera to build 60 hydrogen charging stations by 2026, although this will increase near-term losses [7] - In the first half of 2024, deliveries rose 49% year over year to 113 trucks, with revenue growing 49% to $38.8 million, and analysts expect revenue to nearly quadruple to $133.5 million for the full year [8] - Analysts project revenue could triple to $406.5 million in 2025 and more than double to $934.2 million in 2026, with an expected adjusted EBITDA margin improvement to negative 17% by 2026 [10] - Despite having $256.3 million in cash, Nikola faces $586.4 million in total liabilities and is expected to incur a net loss of $493 million for the full year, indicating potential cash flow challenges [11]