Nikola Corp (NASDAQ:NKLA) announced that it began production of its Tre BEVs last week at the company's Arizona manufacturing facility. The Nikola Tre FCEV deliveries are anticipated in 2023, but the BEV deliveries are just around the corner.
"This is really an important milestone in our growth as a company to be at the point where we can actually start series production last week and have trucks in the hands of our customers starting next month," Mark Russell, CEO of Nikola, said Tuesday on CNBC's "Closing Bell."
Nikola is seeing increased demand following the announcement, according to Russell.
"Everybody wants and needs zero-emission trucks," he said. "We go to customers and we say hey we've got a truck that's in production ... the total cost of ownership of this truck compared to a diesel is gonna be competitive and the response to that is: when can I get one?"
The Road Ahead: Now that Nikola has started production, investors will be focused on how fast the company can scale. Russell told CNBC that Nikola is moving forward despite facing continued supply chain constraints.
"I've never seen shortages so pervasive and so acute," he said.
Russell noted that the company has been able to navigate the headwinds by forming partnerships with companies who are able to work around some of the supply chain challenges. "That's how we've been able to get parts to start production of the Tre," he explained.
The Nikola CEO said he expects the company to produce 300 to 500 vehicles this year, followed by significant scale in 2023.
Nikola on Tuesday announced a partnership with finance company ENGS Commercial Finance. ENGS will offer a broad range of financial solutions for customers considering purchasing Nikola vehicles, charging assets and infrastructure.
From Last Week: How To Trade Nikola's Surging Stock As Commercial Truck Production Begins
NKLA Price Action: Nikola has traded between $6.41 and $19.52 over a 52-week period.
The stock was up 8.94% at $11.33 at the close on Tuesday.
