Nikola (NKLA) 9 May 232023 Q1 Earnings call transcript

Good morning and welcome to the Nikola Corporation First Quarter 2023 Earnings and Business Update Call. Currently, all participants are in a listen-only mode. We’ll 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. [Operator Instructions] As a reminder, this conference is being recorded.

to Sandhu pleasure Investor my is introduce from Dhillon relations. It

everyone. operator, and Nikola and you, Welcome business good call. earnings Thank XXXX morning, to quarter Corporation’s update first

Pasterick, Michael of President Executive today Carey Energy. Lohscheller, me Officer; and are Officer; Joining Stasy Chief Financial Mendes, Chief

morning. measures Investor include are can presentation release to release this Relations found our along the our with section references accompanying distributed comparable detailing to GAAP discussions be today’s at today. of can These press U.S. measures. Today’s and business most reconciled of release A was non-GAAP found end slides call. results we issued financial earlier The on the press the measures be QX and earnings website, the

our may factors Actual press end and at our and SEC. also about on Today’s results of in future cause expectations differ call page explained deck earnings two from some and discussions differ filings results also the that stated, with could to the our today’s those actual plans. forward-looking also materially earnings and include are release of statements

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

undue are not forward-looking You statements. cautioned on reliance put to

presentation, Q&A. prepared give Stasy and followed by remarks, analysts’ After will video the Michael their

We video Please with from begin will conclude presentation. our shareholders. questions the Thank you.

Presentation] [Video

Dhillon, and welcome to call. our everyone. you, good Thank Again, earnings morning, first quarter XXXX

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out energy with it hydrogen Class cell software autonomous Nikola hydrogen together and technology, vehicle very fuel And truck. The is X plainly. our brand, lay in me hydrogen, future built trucks. Let HYLA our more purpose with of for our integrated controls efficiency,

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drayage be and Beginning Online XXXX. be in January intermodal trucks seaports zero XXXX, CARB X, would register railyards by zero All emission drayage the to only trucks required may emissions System. entering

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We expertise for continuing we the are work forward our have look partnership with gained grateful and and to them.

us As great cell we many the battery of production to truck. software ready critical components product for has electric a and we and fuel hydrogen systems truck. pausing get that our fuel cell is its production, truck the to can our electric truck are battery The development of allowed we apply create

inventory customers electric battery to sufficient to production working resumes Arizona facility of Coolidge, order better align plans in built our this We capital our trucks battery our and improve will and capital. be the when allocation with for electric have July, at

us. confident have what we for to out in am best have other we do I set and do. products no of company say class This direction exciting can is all to

own both we trucking infrastructure to potential Nikola The market a growing fuel along way heavy all fuelers, are themselves quickly as sizable virtually creating to well Nikola’s trucks this be mobile with U.S. countries with It testing already hydrogen fuel zero provinces incentives year. is to business. created or which of hydrogen are to to will an hydrogen with the available have happen. our all have cell of truck it hydrogen. are to customers commercial and that share later well started. dedicate unlimited, on make that put in capture of a states and a on of truck, fuel will forefront and businesses The it Canada making allow efforts on upside possible the hydrogen production, HYLA and available HYLA our ecosystem customers the We as emission and has readily cell

and fuel to with even partner experience, to driver, shortly the today the be the truly Autonomous see technology energy on is more available and each improving to next what safety, this does for adding technology It efficiency truck stress is falling PLUS.ai with year will trucking the our tested on battery trip. availability cell electric afterward. being amazing easing

made business to as our have We well. changes

and We the sales a right transitioned have focused or CFO, right more have the out board, people a positions. to a promoted new revised organization,

continued We partnerships and Voltera recently solutions. and dealerships energy to stations. have network have sell to commercial American the our our sales, development energy on with progress trucks largest people refueling commercial have partners and the with our create announcing we North with especially, open side previously eager a new hydrogen stronger and sales service announced And of new joint network

everyone Our and including focus. listening employees in members, this are our team call on

happen in together. all are making this We

future sell trucks, business say, and continue drive if this does no bright, mean? the costs HYLA looks constructing we What can The do There we and is we successful. down. be as build doubt

Class the with definite hydrogen the with stations infrastructure station support of Voltera North as station one hydrogen our are with on trucks. fuel operating Beginning intends supply the Xnd, required for energy We XX of EQT, develop Nikola’s provide expected five Voltera cell and we America both, refueling provide for to up construction. Nikola hydrogen Voltera expertise firms the capital the announced cost throughout fuel plan subsidiary the the for the And X the a will the Power, technical May to years. the electric over next charging stations. electric and to as to well of develop largest vehicles. refueling clean business, execution documentation stations to infrastructure to

recently Hydrogen Buckeye the the and plan and City We time have ordering on receiving equipment. progress on general continue approval Hub, unanimous rezoning made our progress significant amendment on application, from Phoenix lead to of long

demand program we hydrogen North capital partnerships, Hydrogen progress to many to along We the Future over for several Energy Hub, loan strategy strategic on co-development continue the of addition two believe work to the Phoenix production Fortescue completing green business our on the and made the the refueling In these closely application improve with further Industries of buildout others office efficient, months for on U.S. financial process, large-scale be America. Phase and facilities hydrogen X announced Department partners ecosystem. validate of of our last with the across work

an critical cell efficient fueling fuel are part network truck demands. will with be same component time forward customers believe of provide matching we the The to early most mobile capital solutions. at for we our fueling moving fueling look refueling, flexible believe as adoption and business important remaining We while

HYLA pleased date, to have are announce we to fuelers. mobile four hydrogen commissioned We

the development of During the refueling stations. announced quarter, mobile new for we our Chart Industries, and partnership collaboration includes which fuelers hydrogen modular with

third We other have also fuelers signed agreements for party additional mobile Wharton. partners, Taylor from including

than solutions deployed fueling can fueling permanent station and lower any rapidly to geographies allow modular fuelers introduced the hydrogen into requirements us the capital Mobile stations are infrastructure. trucks area. as requirements and geography Mobile in match with in be

trucks this we our remain In year. later fuel to customers on deliver hydrogen program, to cell track

be will finalize trucks are validation. and building vehicle XX customer Gamma trucks. gamma pilot We for testing to currently used

two of we the today, trucks. As and are finishing of first the in trucks have four the completed next process

built be order an the will Biagi, recently for trucks. by four who Postal remaining include and carrier Pilot United Service, June. and XX for leading Trucking, Walmart, announced AJR The the a Linde, fleets end commissioned States of

this built The truck We for believe July. first fuel production year. anticipated units only will the be cell are hydrogen purchase production the company be in available X to Class Nikola with

fuel Our dealers orders have customers. than already cell more from truck for the received XXX end

fill team backlog is remaining Our for diligently and XXXX orders additional secure our commercial XXXX. to working and

the creation and in federal truck first zero market. Nikola. be emissions opportunities hydrogen mover value take believe provided We advantage and our the to market as significant X are cell governments can vehicle will share positioned best of company fuel and Class massive The business state by energy incentives the a take we a for long-term

We the electric are also momentum battery build sales beginning to program. with

trucks from quarter, dealers. battery quarter retail electric we a to the first sales, produced significant XX we achieved the increase XX XX During In XXXX. delivering

delivery these will commercial and customers made and trucks have believe we go-to-market sales build positive improve to providing improved a fully with to build-to-order new solutions. through as financing This we to momentum customers move options inventory revamped continue we reduce continue customer the provide possible dealer in and and Our battery end and to hands, changes network numbers. strategy and will customer integrated look We believe strength continue organization into these on basis. mobility trucks compound we to will will and electric be

pause end the continued cell convert Phase production as battery fuel temporarily X which with progress expansion be of electric the May, the the will we in end we we Coolidge, to both, by on assembly the Coolidge trucks. and hall, accommodate assembly complete will QX. At of hydrogen line In

cell in we resume will production. July We fuel production begin as

We module Fuel Power also begin manufacturing begin December Coolidge July Cell XXXX will and pack XXXX. plan to Module by Coolidge by Bosch battery and in assembly in

Company the rest CFO, to our her I am flying Stasy. team. team. on passion the the me join it start is Stasy me to partner She She’s business be the in I now have knowledge evident on will and and great off a our her to pass for with leadership of leadership great new happy and a will has of work.

everyone. you, Michael, and morning, Thank good

I business opportunity in economy, and I A team had be position the deep positive of to one we I’m Class the need priorities long-term that and on to world. highly impact can develop can to greater hydrogen unlock virtually that alongside is focus the lower Company’s begin the have business with and Nikola’s In saying the the navigate value align and To macro optimize thrilled Nikola opportunities would cost and It thankful leader number Michael understanding North we our get fuel joining with my My impact financials. strategy with on positive like goal Nikola business make discipline. is in American our challenging financial emission opportunity, EBITDA years our XXXX. and in last Nikola, our a cell, structure, and make our of operations spend to Board, and the on by focusing on I cash I’m marketplace. to to a believe burn, right transportation am a four support. for excited your I CFO unlimited zero our market. is decisions, by hydrogen leadership strategic By environment, positive the the a the new achieve be the a and of critical on capitalize the to

Now, our results. let’s QX review

battery revenues negative we electric attributable $XX.X Lower pivot first and to manage generating costs manufacturing specifically approximately and for our out to in to QX. a overhead $XX.X the while XXX% improvement gross a of or of the plant volumes. higher strategy XX to of structure. substantial inventory in delivery quarter, improved Cypress, we inbound loss million, transitioning costs receipts, as improvements for Cost recognized This revenues inventory related build-to-order delivered we freight was During and quarter of nearly trucks cost negative versus labor million $XX total million. dealers is XXX%

below R&D million, expenses in QX including compensation. levels in $XX.X stock-based midpoint in based levels, compensation. guidance of our expenses totaling $XX.X came QX QX at including significantly SG&A million, and below at and $XX.X million below of our came the $X.X stock million guidance

$XXX.X was loss non-GAAP and per net basis million. $X.XX awards, market-based run to the lower at and With new and compensation million, share XXXX. GAAP non-GAAP rate and a plan was cancelation half we and totaled totaled forward the compensation RSU stock $X.XX the be quarter in per second of million executive moving $XX GAAP basic roughly basic diluted. remaining the net for first expect substantially of on quarter on basis diluted, $XXX.X loss

$XXX.X we million restricted net included proceeds direct million from in and cash balance in Not in QX Turning to sheet, our balance with the including cash $XX.X the is quarter cash. offerings, we April. $XX.X the follow-on approximately million closed ended which of received of

is in Tumim million ELOC, of cash and the on current balance April and access million sheet million million received convertible available $XX the is to on approximately Our million follow-on cash, proceeds offering. comprised from debt, restricted $XXX million $XXX $XXX on $XXX.X available $XX.X of net of including ATM, available of capital

other shares is We our limitations being along this registering capital agreement, and be price. shares want clear, including upon per of by with market the stock in certain to additional contractual conditions, June much and applicable availability those stockholders authorized dependent

place, addition in to including are capital, vigilantly we In assets to raise the existing we already monitoring our on have facilities sheet. opportunities monetizing balance

resulting was receivable approximately million, down At in $XX.X to collections higher million Through we April, million $XX volume. million. floorplan the QX of able from end balance by secure AR been quarter, accounts in have facilities, of sales the approximately $XX.X despite $X

working We have and on sales faster hard available, both improve financing to conversion. know financing they’re and it substantially side retail our customers options, enable and dealer is important our for cash to a to

At the $XX This trucks QX levels. including XXX electric inventory, Coolidge. $XXX.X WIP million approximately of finished end flat inventory, of QX, held includes in and million battery versus we and

we minimizing Now that requirements manufacturing we are burn raw materials. build-to-order to, have inventory, from adjusting improve our to sufficient optimize stocked cash by strategy capital and build-to-stock working

is approximately fuel totaled facility the manufacturing CapEx power spent for and supplier production cell for hydrogen the now part million fuelers, Coolidge complete, hydrogen substantially was production first truck, cell fuel tooling predominantly quarter $XX.X line. on mobile expansion, which equipment, the and module

are Europe, we $XX Nikola for earlier, the In JV, JV shares common America. million the said stake in on million Iveco of our stock to XX% Michael Iveco with back our most our deliver North important market, As Nikola. XX us exiting allowing cash in focus exchange pay will and to exclusively

see mix remain investment near-term JV return hitting benefit numbers from Iveco, of year. see from cell to focus spend, additional our market, utilize that commitments, new We activities. to to and By The shift savings development being realize able strong shares electric for European technology. for from to this from the shifting delivery capital focused future our may sales as million demand fuel our the battery North consisting XX momentum hydrogen expect on contribution we team product raise we American commercial of and improved

is by million footprint call. our manufacturing efficient to being through from have update of it guide optimizing by year time, at do prioritization. infrastructure. on cost too guidance, unchanged early reduce to For the this XXXX XXXX we and full full At sight $XX capital are and line as least year working energy year the remains last alignment in CapEx center We a our

into critical expenses also QX in taking a provide are will update an our on We our operating and look call August.

of In to $XX XXX%. to XX revenues of XXX% million generate million deliver electric we expect XX gross battery QX, for to margins trucks $XX.X and negative to

to ASP year. we to the the hydrogen our We of fuel commences, cell margin be expect immediately improve, a we gross expect production bill the electric, on and to to volume scale material as due to and substantially higher margins continue costs. battery gross lower superior throughout trucks Once

by goal breakeven gross to point Our of end reach the is margin XXXX.

of fuel $XX for are compensation. to to fuel R&D build R&D is of build QX in QX, activities million due XXXX million range million estimated the $XX cell in including fuel and cell Our stock expenses in front-loaded QX $X the beta cell validation launch. gamma in ahead

year. higher compensation half by executives million $X.X cell primarily focused awards in fuel second of SG&A XX% accommodate the to on be retirement executive million, We approximately be expect $X.X CapEx run stock-based will supplier million. $XX drop of including the million assembly rate a Stock will due cell of the part of in stock of to module in R&D fuel be in remaining cell cancellation the market-based modification $XX for the to power range tooling. production compensation We and our anticipate $XX expenses. to line million and impact line of fuel $XX hydrogen QX, to to million, truck, of QX Coolidge in the

expect forward, and QX, reduce have we build shares Going footprint be the outstanding quarter our expect investment. be to for with approximately outstanding we the will million. total minimal capacity spending the the as CapEx to million In shares approximately average we weighted $XXX to trucks, additional significantly, to and $XXX.X

for sustainable approximately spending. we In for almost to of and burn, in looking business, million level much by XXXX. QX option million cash focus was severance. our every reductions structure. $XXX This cost not operations is Cypress cash million and our at inflated XXXX, related was burn are will burn in our of quarter of cash of $XX and QX realign Nikola cash as redefined per a allow we us lower Our burn cost $XXX

pillars towards a progress quarter to burn XXXX show capital: coming working line see and $XX I on of per management; opportunities inventory sight million. million specifically reduce progress reductions, reaching beginning have cash improve some end in achieve of to payables; We focus further million position XXXX. of profitability. personally We are take $XXX cash driving template target by aggressive and approximately will million a $XXX am with in focus to working and collection. further burn cost April are the cash of with of to find and course, three in already management renewed to cash This already burn all at and quarterly procurement cash tangible our $XXX of

will for Michael back I Now, pass to it remarks. closing

Thank you, Stasy.

Let how me and will better. this summarize focus Nikola our make priorities

will where We is hydrogen cell focus advantages. North on in business our we and competitive truck refueling fuel have clear This America. the

We with are the a the first energy cell market have and fuel in with hydrogen infrastructure. role truck our our leading

change the battery model will and truck focus and technologies build-to-order autonomous to drivers which for We electric fleets. our help on

cash our We the and capture electric this achieve hydrogen increase will concludes By fuel of reduce market. prepared and trucks our will This expect meaningful burn momentum on strengths, a battery our turn our sales both, focusing in in Nikola focus and share profitability we help to sooner. continue remarks.

Operator, please line questions. open the analyst for

Instructions] Partners. question Our Vertical first with [Operator Research Kauffman Jeff from is

to the best very $XXX quarter, thank burn sight second we’re for the us line of, of it on $XXX of adjustments next some you. see up million it to all, cash end of you rundown. year? or going And for mostly have very what on this of year you kind first beginning and a Could congratulations visibility year. a wanted more better types promotion throughout we of I constant Thank -- detailed to follow be is a just million on and at programs these you that going give feel do Stasy, of where the much and luck of is half your comment to per to you of reengineering on? your

work good Jeff. I’m And lot we Thanks, do. I to words. have excited. the here. to of appreciate It’s kind Obviously, a be

our coming about truck get will course be fuel limit I capital. jumping you of million, things. as here. average which still, million, my monthly call, ultimate below And that’s April. really briefly and burn, look economics And we need to cash the be in lot goal in ramp if some again, reduce the $XX $XXX in talking it’ll OpEx, mentioned better, have a QX, a progress in in we’re CapEx, already doing working to a We which was improve to work And at $XX up of mentioned, there do combination So for we that critical much million to which get manage of as is comparatively, at one, we’ve made to cell.

to of of roughly half really lot a come that be cash half in production, our XXXX. Once fuel will get will attributable burn into So, second we capital. of cell working

if can to by making effectively build-to-order, can manage improve we available, have So, we sure switching our we it. then financing that drastically more managing inventory,

then more just and one follow-up, is for energy the And this business.

have With the with economics the not out Does been Nikola the of the to made mobile that just these for with Voltera put capital the Voltera, moving of we - money for think as announcements fuelers and stations. change this partnership should does deal it the how the energy having and business?

change model, terms announcements at the all? of do recent these In anything or how do they energy

And Carey Jeff, the question. Mendes it’s of Energy President Yes. great division. here,

ecosystem, economic detailed partners. The capital energy you’re building mover us whole a when the and us them stations. business with a Voltera are in I And the model enables burden right, partnering to right, absolutely think, very relieve mobile deal, a advantage actually building the stations, this look at we for with these have significant our first to having actually, get we fuelers. negotiating

competition, the and with a this, experience lot energy a in of plain infrastructure an getting mover leg first up of you As advantage gives a simple. person on

great of that. Voltera a been has So partner

how first them that with modeled competitive understand rate. What movers are we’ve fair don’t are we of We economics and this change. with negotiated a us. we’ve The is partnering

burden we and the as go the I’d say looking relieves economics change. So, at capital this forward our don’t model,

with is JP next Bill Our Peterson Morgan. question from

week, Michael. Nice seeing you last

of presumably of you showing guess and both fleets fleets. coming But that a you California. in advanced your then especially have or I’m sticks focused mentioned current lot conference? the talking arrangements fleets -- maybe clean my -- particularly that is were with on discussions towards that where your are And Are people really gravitating fuel Expo newer conversations out about ACT with? coming there’s trucks announced don’t you cell question that of having more more at So, you I most

Thanks questions. Yes. for your Bill

So first Expo of I mean big all, was ACT last mean, very week. a I overwhelmed. was really I show

we think all there a a couple customers. see people. were of I I very kinds trends. XX,XXX had And very, very business of good discuss important opportunity to with our topics

So mean, is mobility first the of obvious. are California sticks coming, out all, emission I zero right? And so of

before. was level year the So, interest a higher much much, of than

production, electric it terms In applications, customers, prefer a are but but battery like truck, depends [ph] the continue electric very this electric cell relevant now of they truck, right, our and build still forward. to we we truck are to both, we see while on happy So, ports happy the to we battery fuel truck, post going battery in California, and for the truck produce right?

now of in in a July. positioned, the why is right? miles mean, and else now, think competitive. out and we same in will truck is say, cell interest a that’s produce XXX of best-in-class terms truck, truck It’s the fuel The Nikola very cell the time, there cell strong At I I uniquely is fuel fuel I very there is who range

are customers numbers. overall -- Carey customers our topic electric infrastructure. a in orders but takeaway see surprised daily and go. battery order that was for is is the I the the firm from I this it That the actually basis. kind on on shows mean, ports, to Expo up interest truck, it the my positively have mean, especially in yes, morning. number And where because we XXX And this we what I and is about ACT mentioned next really got, there you will think just from I most is So dealers. of -- going very hydrogen

to truck shows have it people this wait. now want don’t So, and that

So, trend in I think of we see clear cell and fuel terms hydrogen. a

question for Thanks My second Stasy. Okay. that. for is

in for be been capital, options that the know, don’t time. there here that I think you’ve the you could ahead guess, balance raising for do some So, a some I have think mentioned you how looking you about period purposes? role of may particular you use, any I options sheet.

have nice down. just from maybe the it’s elaborate here? to way, And If and cash what you But see could come do have the options that by on going what do burn you forward? options you

offering. market you, Thank And additional capital are typical again, raise raise the went we limiting QX, and through we question. now, full million $XXX are is to the obviously, existing we In cash Bill. here all me. And for also raised the capital. instruments after a of to able list off. priority burn have on this tough in And great remain high the pull demonstrated raised on positive Yes. we ability with and along Obviously, $XXX very and lot we market, conditions out companies right very the not know right the million end, but that to quarter

optimistic. cautiously remain we So,

facilities including money, covered as access monetizing you mentioned, to raise is And we’ve also As assets that capital we existing are on have. we far million. $XXX exploring about to as opportunities the the remaining other

and If you while access available on as PP&E, that well needed we land, as lot costs. terms continue sheet, will to as look we’re working have in options we have capital on at our in to nature, sheet sure balance we cutting that make balance [Ph] IP. things of always our parallel buildings, So a of

Cumming Our question Dillon from next with is Morgan Stanley. Please proceed.

ties just EBITDA a positive to one of of being the breakeven or XXXX. back outcome Good in terms Stasy, ones in go comment -- of I question. morning. firm. to asked a But, for by the that cash earlier targeting made the Hey. EBITDA into still you wanted terms Thanks I still was confident guess, or

at and/or this As you truck right? cost you of I reduction production point of what actions? I the comments guess, cash to your through relative are would ties structure, the some But on cost made this outcome support deliveries, of burn. level going that think into some

Yes. for Thank question. your you

we we our One, from opportunity cells, reduce the better we in volume. battery way BOM EBITDA fuel the we the have Step have we think of need costs now a to because to is where battery on things to about and on and we a profitable one BOM ‘XX. So, coming need our fuel there realign to money less truck. reduce that to have sales about, level the pack on the get costs, more path be we that, is make a lot And everything primarily it: on talked increase lot do cell, to and by

haven’t to for double cover given that’s anywhere X,XXX be need depending in to are. of will to from back. our need at well, close we be break on guidance would on And we our I as come working able Again, we back, ‘XX, current least where trucks we’re we XXXX out where cash while even. to expect that’s X,XXX to from will us but -- to level to currently as mention down the able cash for mix it we in So ‘XX, to sell

Okay.

ahead. Sorry, go

on opportunity obviously, pricing. only fuel I of to cell, a lot the have other mention, with The we No. thing our wanted

are first market. just the given we we not what reducing specific going to about, but pricing also that’s working a where are it’s BOM to very reductions talked have on, BOM So, Michael be the

able be fuel there. we margin So pricing we more to will And get a better the on bit cell. little have power

you technology solving from of the about the endgame mentioned and fuel platforms forward. asking partnership context the them right the a super I you. for kind in for I Does, concerns truck not. because cabover test think model in kind new whether or US market product? the the going of well. guess, a are is ask of or potentially just guess, out of And flush to dissolution I’m I then, the if that your hydrogen release terms I can JV question Thank collaboration in door I of Can not think them? I open cell on some helpful. great. license you just Iveco to looks out, you the the still press like the planning guess with what as Okay, That’s framework

your be there. just curious on thoughts So

Thanks, Dillon.

me Let that. here. Michael take

obviously the a with Iveco, Iveco all, meaningful and Nikola of the supply have way. shareholder from continue. first the We, of partnership Iveco side, e-Axle. I so cab continue a the in stay will will mean, also Nikola with agreement So will to

here So, mean, continues, focusing does the it’s we but the in have way the cell business Europe way. cell partners? make that focused my a I with And on truck. both fuel a much the this I fuel positive more in partnership so much And does for also in North the sense and Iveco momentum why here on America. engineers on all focus we truck, need better

engineers So, it to sometimes in tell like have idea implement me companies difference. side of will experience, good actually terms you not operational let nine the to much on with other help Because the faster. world both it’s hour a of time

much implementation faster. be will So

good In your point. cabover, And for a Expo very terms also great ACT of me. feedback there, was

they people once delighted. They the Is love see And there, who an cabover are the are in people in loves our But everybody absolutely. it once people many cabover? infotainment. actually particular also unusual are Yes, not it. in are there So, truck.

they look, very So, two customers will or I’m cabover. yes, one find about okay. say, the it. like And you that’s very, we and don’t positive But

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

at bank mobile account. paying as Voltera’s bridge fueler the about as ask great million deal, was you developed? well. to the saw, tanks feelers, a I that stations -- lot I stations Expo for As for they’ll out it’s for show, business. meet I for I still down, it Voltera in the walked you unit. or paying use Michael, but of those ACT But And the the a coming there’s per where HYLA want are to of guess, no last are kind mobile a week either of few seems dollars an being area customers the to like be it

who’s So, each going paying I’m for those, curious to of be fuelers HYLA there.

think I one this again, area It’s good is And these Mendes Mike. Nikola’s here leading Carrie where Thanks Yes. and with again, mobile the fuelers. ecosystem question.

in release. them. some from And fuelers. in Wharton we talked developed, be XX being of press bar to we’ve We’ve another and which suppliers year mobile terms Taylor Michael a now that then of own These developed from XXX of so which we’ve rest being liquid Chart in The those the got we’ve will coming third And able faster the on being with this party And first got lease those own. mentioned one, pressure, so of about are our Industries good then refueling three out or next came four those terms more suppliers, one got that for December, another. enables our more We’ve one time. year. each of

they’re And see value of to mobile partnerships look, these the these is keen use fuelers. greater in

I terms So, really partners got being them. and good with they’re we’ve think, each of good

profitable is question faster. mobile I on then, up, years business I to these a it scales I the really to have as next stations dealers, because business take think, these a dealers, build, a mobile this couple lot think stream come think

balance solid with this So in fact the think the lot capital of incentives at, off a and others. model we the Voltera to people first Inflation since various I sheets, There’s of the space, what’s especially the we’re those? okay, hydrogen. bringing partnership to and are looking market also you’ve into for seen the advantage And take Act, get that looking demand Reduction announcement

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so reflect ultimately have sales price And customer, we that. the will the

to clarify the outstanding. And wanted Tre I then, Okay, plan the forward. going BEV for

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Deutsche Winnie with Our Dong from next Bank. question is

well you margin has the of sequentially, one quite -- the on you for to improved bridge drivers negative is QX the Can of provide bit results. the the question the a QX what are a First gross sort guide the but the reiterate as year full guidance -- margin to also more then, Thanks. bridge your term? And can expectation? in versus margin if gross

the Winnie, nice on Yes. Good again. to question talk Hi margin. to you

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communicated gross have range the the we So to here for really get of year. that’s the the margin rest of that key to the

strategy customers. Maybe Thank of you delivery encouraging bit deliveries customers market, retail to taking are much. a the And end us you’ve signs order. dealers in Got quarter? observations BEV, that about talk can the like some built the so some to question a then, end follow-up improvement end in made? are there Thanks. we it. you quite that as terms In did to now seems is of new on from But the retail see

Yes. to and more some up this. on this Thanks happy color for bringing give

the with Actually, XXXX. total on First quarter. the side of much than retail year the in all, you being we we now XX uptick are have I in more seen totally that’s right. mean, retailed retailed trucks

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so Thank pass Great. you much. on. it I’ll

Instructions] from is Our next BTIG. proceed. [Operator Tyler question DiMatteo with Please

fuel the cell Michael, Thanks vehicle. Hi, taking follow-up to the for question. on wanted everyone. I

the year are about level, trying towards the any continues end pieces As out in to you thinking bring those book grow, to to order look prioritizing order and you roll at way color of think this that more a higher how are more just that, to continues these to increase, house, your as there? all about presumably orders, book any just you while of

some add happy Tyler. Great I’m color. to Sure. point,

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last moment? the Then a able we want, truck cell XX what there have only truck. And really all in point. fuel of when customers very trend is mobility of miles. and miles it think Which is confirmed will zero the XXX minutes. week was produce terms at other of range it. a obvious whatever fuel I unique is is emission First selling all, were that? But strong do is truck we in to cell why the So be time the we the can fueling California, XXX

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follow-up piece. orders retail were good. on financing And Clearly, pretty to wanted then, this quarter, I the

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question is with next Our from TD Cowen. Jeff Osborne

on had my the curious in a just your if couple recall narrow decision the on recall variable a I Just the any there. thinking applaud like I’m BEV on decision, your impact outcome, focus? I to but was was curious end. the the the if

No, decision no I impact this whatsoever. not a We was at this, all. And through had thanks Jeff our had recall. for mean, bringing this worked up. on No.

one from there was just SEC into or you I of remainder recall for the ago. then, the items next? to time cash And time trying entered any the some details is that year this settlement

were on Did something you the years. multiple payments you over already paid installments for or two think the cash reserve I the made that already or come? that have that over is to

$X.X of to yes, small very So like we million. payments at the the looking SEC to incremental are making tune

out. So our we’re stretching in liabilities right that It’s now.

burn gave there or I incremental more the the positive? path on provide if cash -- of target any details could margin EBITDA but the know to you then, And in you gross margin, didn’t is gross

year to kind breakeven. to our Again, we to Yes. fuel fuel and right? improve margins need things, of I think goes cell back it on next get cell the One, first two

And that, so, Right right? need do now how to on cell, improve we BOM our we the cost. can fuel

then, and per truck manufacturing We bringing module fuel market. also, in we and material XXX,XXX one, And suppliers. can we be just better the better, price already are our we to average And to first going touched higher FCEV, that that by on having on truck Coolidge to the hit And volume just power getting being selling XXXX. production power at about the XXX,XXX expect cost. to target do is cell per with in pricing

back for you. Dhillon call now shareholder to Thank will the over questions. I hand

Thank you, operator.

you how and many far, orders how is, many so have? question sold first companies you have The do trucks from

electric have we of XXX the wholesale QX, made truck. Through deliveries battery

conjunction have them sales retail customers dealer with sales were improvements. we add momentum additional our XX good through retail product financing partners, we challenges, to commercial increases. QX, make building improving Our infrastructure work network and as been improved and in in with and sales team completed and see

on and As dealers. Auto vehicles our Universe electric the Solutions, retail we TTSI, Avant-Garde deliver is showed Logistics Electric Nissan earlier, truck using to battery to customers slide include

fuel for customer more have hydrogen hydrogen from than received the cell fleets end On XXX fuel cell over truck, seven orders dealers trucks.

Biagi Bros, and Power previously announced We Plug orders have recently from AJR.

The made the hydrogen being what plans Nikola are top? second bring to question advance that technologies is to will

Sure.

market. the fuel the be believe available We Voltera purchase great cell start we for company first doing both, to electric making cell trucks on fuel right mobile and progress conjunction one the the head hydrogen verge good hydrogen company will is have So truck and In the No a recently energy. fuelers. significant have a is of else with side progress vehicle with the we on truck, are energy joint with station now, on competition. production bringing the agreement the on coming this. other No announcing with development made and we

fact, coming In our competitors to hydrogen may be us for fuel.

business. are So, our a hydrogen cell we excited about massive and truck There fuel energy potential. is

few questions a to need those surrounding are metrics. there achieve we to volume would and Stasy, what Michael. hit production profitability, you, Thank breakeven,

we maybe go those So, over now. can

Sure. you, Dhillon. Thank

places. Now gross need have better But in several a XXXX. breakeven about refocused model, have our we business be we to to able on reaching by the XXXX. we trucks path we make profitability, EBITDA sell by achieve that from first, money will before positive talk margin come we This to

on packs BOM our the battery have reduce battery fuel we on nine cost to begin with, has to specifically only where cost cells, a two have material as packs versus it We BEV. lower

BOM packs As cost. make for you XX% the the BEV, themselves of battery up know over

and to serial For fuel of getting XXX,XXX to truck currently cell, with to XXX,XXX will and Coolidge XXXX. hitting cost we down higher we by be per goal production FCPM per truck, volumes that eventual achieving manufacturing at anticipate by XXX,XXX driving bringing

have previously through and currently stock a hand. cell material That XXX,XXX line For picking per battery finished once up as will through of pricing purchases XXX,XXX improve future sight as battery down we as come sell we trucks have and cost improvement well current at discussed on BEV, we’re that pack significantly. cost prices reduction with lithium come BOM lower of to the to batteries

and not to get need at us business outback positive giving XXXX our to to XXXX, will our be gross margin on level. volume mix That close sell cash for EBITDA. we guidance trucks are depending we the to While cover to needs able to expect for double to we X,XXX least in to on X,XXX at the breakeven

to earnings Thank for ongoing your and you all quarter support. call for our first listening

As Wish executing we are See a we you business and soon. Goodbye. continue you will plan. wonderful day. discussed, very-focused our

conference. now you. concludes This Thank today’s

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