Nikola Corporation Reports First Quarter 2022 Results

Published May 5, 2022

Began serial production of the Nikola Tre BEV on March 21
Received Purchase Orders (POs) for 134 Tre BEVs utilizing California’s HVIP¹ incentive through April
Shipped 11 saleable production trucks to dealers in April for customer delivery
Completed Tre FCEV alpha pilot testing with Anheuser-Busch (A-B) in Southern California operations in April
Completed Phase 1 of Coolidge, Arizona manufacturing facility in March
Announced $200 million Senior Note Investment by Antara Capital

PHOENIX – May 5, 2022 — Nikola Corporation (Nasdaq: NKLA), a global leader in zero-emissions transportation solutions, today reported financial results for the quarter ended March 31, 2022.

“During the first quarter, we reached a significant milestone with the start of serial production for the Nikola Tre BEV at our Coolidge, Arizona manufacturing facility and are currently delivering saleable trucks to dealers for customer deliveries,” said Mark Russell, Nikola’s Chief Executive Officer. “We look forward to scaling production and delivering 300 – 500 production vehicles to customers this year.”

Nikola Tre BEV Update

During the first quarter, the final 10 of a total fleet of 40 pre-series Tre BEVs came off the line in Coolidge, Arizona. Pre-series trucks continue to be used in customer pilots, dealer demos, and internal R&D testing. On April 29, we successfully completed our first Tre BEV customer pilot with TTSI. We also successfully completed a 14-day pilot with Univar Solutions (NYSE: UNVR). We are currently undergoing pilot testing with several other customers, including Covenant Logistics (Nasdaq: CVLG).

On March 21, 2022, we began serial production of the Nikola Tre BEV in Coolidge, Arizona. We began shipping saleable Tre BEVs to dealers in April for customer deliveries. Customer POs for 134 trucks have been issued to our dealers utilizing California HVIP. To date, we have received POs, LOIs, and MOUs for a total of 510 Nikola Tre BEVs.

Nikola Tre FCEV Program Update

Tre FCEV alpha pilot testing with Anheuser-Busch (A-B) in Southern California was successfully concluded on April 29. The Tre FCEV alphas logged over 12,000 miles in A-B operations. FCEV alpha pilot testing is scheduled to begin with TTSI by the end of May. We plan to begin building the first six beta FCEV trucks by the end of Q2 2022 and complete them by the end of Q3 2022. This first batch is expected to be followed by builds of a second batch of five and a third batch of eight beta trucks. Each beta cohort will incorporate learnings from alpha fleet testing and previous batches. Validation of the beta fleet trucks is scheduled to progress through the first half of 2023, followed by the start of serial production planned in the second half of 2023.

Coolidge, Arizona Manufacturing Facility Update

Phase 1 of the Coolidge, Arizona facility is completed with a production capacity of 2,500 trucks. We have begun the Phase 2 assembly area expansion, which is expected to be completed in 2023 and provide a production capacity of up to 20,000 trucks per year on two shifts.

Energy Business Updates

In Q1, we selected our first dispensing station location with our station partner, TravelCenters of America (TA). Nikola and TA plan to jointly build hydrogen refueling infrastructure on TA’s existing station in Ontario, California along Interstate 10.

On April 26, 2022, TC Energy, in conjunction with Nikola, announced a plan to evaluate a hydrogen production hub in Crossfield, Alberta. The hub is expected to produce an estimated 60 tonnes of hydrogen per day, with the capacity to expand to up to 150 tonnes per day. Nikola is intended to serve as TC Energy’s anchor customer for the hub.

Dealer Network Expansion with Alta Equipment Group in Arizona

On March 23, 2022, we announced an expanded partnership with Alta Equipment Group covering the Arizona sales and service territory. Our sales and service network now covers 27 states with over 127 locations.

Announced Finance Agreement with ENGS Commercial Finance Co.

On March 29, 2022, we signed an agreement with ENGS Commercial Finance Co. to facilitate the sale of Class 8 Nikola Tre BEVs and FCEVs. Working directly through the Nikola dealer network, ENGS will offer a broad range of customer finance solutions for the purchase of Nikola vehicles, charging assets, and infrastructure requirements.

Strengthened Leadership Team and Board of Directors

On February 22, 2022, Michael Lohscheller was named President of Nikola Motor division, reporting to CEO Mark Russell. On February 24, 2022, Lynn Forester de Rothschild of Inclusive Capital Partners was appointed to the Board of Directors, replacing Jeff Ubben.

$200 Million Senior Notes Investment

On May 2, 2022, we announced a $200 million investment from funds advised by Antara Capital. The investment comes in the form of a senior unsecured note bearing interest of 8% if paid in cash, and 11% if paid by the issuance of additional notes. The notes will mature in May of 2026. We expect the note to fund in early June 2022.

First Quarter Financial Highlights

Business Outlook

Nikola looks forward to achieving the following milestones in 2022:

Deliver 300 to 500 production Tre BEV trucks
Successful FCEV alpha pilot testing with Anheuser-Busch and TTSI
Build, validate and test Tre FCEV beta trucks
Announce location, break ground, and commence construction of the first hydrogen production hub in Arizona
Announce two or more dispensing station partners in California

Webcast and Conference Call Information

Nikola will host a webcast to discuss its first-quarter results at 6:30 a.m. Pacific Time (9:30 a.m. Eastern Time) on May 5, 2022. To access the webcast, parties in the United States should follow this link: https://www.webcast-eqs.com/register/nikola20220505/en.

The live audio webcast, along with supplemental information, will be accessible on the Company’s Investor Relations website at https://nikolamotor.com/investors/news?active=events. A recording of the webcast will also be available following the earnings call.

About Nikola Corporation

Nikola Corporation is globally transforming the transportation industry. As a designer and manufacturer of zero-emission battery-electric and hydrogen-electric vehicles, electric vehicle drivetrains, vehicle components, energy storage systems, and hydrogen station infrastructure, Nikola is driven to revolutionize the economic and environmental impact of commerce as we know it today. Founded in 2015, Nikola Corporation is headquartered in Phoenix, Arizona. For more information, visit www.nikolamotor.com or Twitter @nikolamotor.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of federal securities laws with respect to Nikola Corporation (the “Company”), including statements relating to the Company’s future performance and milestones; expected timing of manufacturing facility expansion and production capacity; timing of completion of testing, production, as well as other milestones; expectations regarding the trucks’ uses and impact; and terms and potential benefits of the planned collaborations with its strategic partners. These forward-looking statements generally are identified by words such as “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” and similar expressions. Forward-looking statements are predictions, projections, and other statements about future events based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: design and manufacturing changes and delays, including global shortages in parts and materials; general economic, financial, legal, regulatory, political and business conditions and changes in domestic and foreign markets; the potential effects of COVID-19; the outcome of legal, regulatory and judicial proceedings to which the Company is, or may become a party; demand for and customer acceptance of the Company’s trucks; the results of customer pilot testing; the execution and terms of definitive agreements; risks associated with development and testing of fuel-cell power modules and hydrogen storage systems; risks related to the rollout of the Company’s business and the timing of expected business milestones; the effects of competition on the Company’s future business; the availability of and need for capital; and the factors, risks and uncertainties regarding the Company’s business described in the “Risk Factors” section of the Company’s annual report on Form 10-K for the year ended December 31, 2021 filed with the SEC, in addition to the Company’s subsequent filings with the SEC. These filings identify and address other important risks and uncertainties that could cause the Company’s actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and, except as required by law, the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

Use of Non-GAAP Financial Measures

This press release references Adjusted EBITDA, non-GAAP net loss, and non-GAAP net loss per share, basic and diluted, all of which are non-GAAP financial measures and are presented as supplemental measures of the Company’s performance. The Company defines Adjusted EBITDA as earnings before interest expense, taxes, depreciation and amortization, stock-based compensation expense, and certain other items determined by the Company. Non-GAAP net loss is defined as net loss adjusted for stock-based compensation expense and certain other items determined by the Company. Non-GAAP net loss per share basic and diluted is defined as non-GAAP net loss divided by weighted average basic and diluted shares outstanding. These non-GAAP measures are not substitutes for or superior to measures of financial performance prepared in accordance with generally accepted accounting principles in the United States (GAAP) and should not be considered as an alternative to any other performance measures derived in accordance with GAAP.

The Company believes that presenting these non-GAAP measures provides useful supplemental information to investors about the Company in understanding and evaluating its operating results, enhancing the overall understanding of its past performance and future prospects, and allowing for greater transparency with respect to key financial metrics used by its management in financial and operational-decision making. However, there are a number of limitations related to the use of non-GAAP measures and their nearest GAAP equivalents. For example, other companies may calculate non-GAAP measures differently or may use other measures to calculate their financial performance, and therefore any non-GAAP measures the Company uses may not be directly comparable to similarly titled measures of other companies.

INVESTOR INQUIRIES:

[email protected]

1. “HVIP” stands for California’s Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project which allows for up to $150,000 towards the purchase of qualifying vehicles.