Yesterday was a huge day for Nikola Motor Company (NASDAQ:NKLA). Shareholders of VTIQ voted “YES” for a merger with Nikola. Tomorrow VTIQ ticker becomes NKLA and the rest is history.
Even though VTIQ stock dropped on this news (some 7%) price will probably hit all time high once the hype is out there. Maybe on the same day NKLA ticker is live and that means Thursday morning. If someone have a share in VTIQ it will automatically switch over on Thursday in NKLA.
Enough with speculations, lets see what Mr. Trevor Milton have to say about the future of Nikola Motor Company.
Production road map
With 7 different vehicles and hydrogen station in the pipeline it seems like a lot for NIKOLA. Mr. Milton said that they will launch “pretty awesome, zero emission truck” that they are going to produce. A battery electric version is being done in Europe by IVECO. They (IVECO) will manage the join-venture while NIKOLA offers brand and technology. Almost no working there for Nikola.
That same powertrain (except they have fuel cell as well) will be produced in USA and will be called Nikola 2. IVECO will also help Nikola to produce that as well.
Another product inworks for Nikola Motor is a Nikola Badger pickup truck. This is a really unique truck because it is not just battery powered electric truck, but you can order it as fuel cell+battery model. Meaning you can upgrade or downgrade power train for Nikola when you find it fit.
Another thing Mr. Milton said that they will use truck dealership to market and service their trucks throughout USA. Not having your own dealership can hurt you but in the words of Trevor Milton, “Dealership will pay us to service our trucks” and he added that they will send their parts to dealership locations so they dont have to house them. This way dealership stock Nikola parts and it come “all less capital intensive” for NKLA.
According to Mr. Milton company now have around $1B in cahs on their account and monthly rate burn is only around a “couple of millions”. They are having such a low cash burn since they employ 350-ish workers and outsource majority of production.
I am going to partner with everybody, I am not gonna do anything myself.Trevor Milton, Nikola Motor Company CEO
Outsourcing is probably something that will turn off investors but Nikola CEO thinks this is something positive.
So, basically $NKLA is just a marketing layer above other OEMs, isn't it? Which, in turn, already have the strategy of outsourcing everything and it backfires on them, right? There's no logic to this.— TSLA to the 🌒 (@graycrow) June 3, 2020
On Diesel trucks
“We need to get rid of that crap”- is what Mr. Milton thinks about diesel. There is no reason for people to be driving these trucks anymore, because electric and hydrogen (especially combined) is better than diesel platform.
You guys don’t give a shit about electric vehiclesMr. Milton about big corporations that are producing both diesel and electric vehicles
He wants to go after diesel in trucking world and also in marine world in the future. Electric and fuel cells outperform diesel because “on hydrogen side you have wight advantage and on electric side you have cost advantage”. When you combine those 2 together Mr. Milton is sure that diesel will be a history.