Nikola Corp (NASDAQ: NKLA) said on Wednesday it had started production of its first semi-trucks earlier this week, sending shares of the electric truck maker higher after the bell.
What Happened: Nikola plans to begin deliveries for the electric Tre semi-truck in the U.S. in the second quarter, the company told analysts during a presentation.
It said it expects to deliver between 300 to 500 trucks this year, generate “meaningful revenue” in the second half, and break-even in 2024.
“Backlogs of LOIs, MOUs, and POs are expected to increase as Nikola produces and delivers production Tre BEVs in 2022 and 2023,” the company said.
The trucks are being built at the company’s factory in Coolidge, Arizona, where it has an annual capacity of 45,000.
Production and deliveries for Tre trucks in Europe are expected to begin next year in the second quarter and third quarter, respectively.
Nikola can build up to 10,000 units a year in Ulm, where it has a manufacturing partnership with the Italian transport vehicle company IVECO.
The electric truck maker said it has already delivered 18 Tre trucks and another 22 are awaiting final checks.
See Also: Nikola's $2B Lawsuit Against Tesla Days Away From Dismissal: What Investors Should Know
Why It Matters: Despite early hiccups, Nikola is the first EV manufacturer to deliver zero-emission commercial trucks, beating bigger rival Tesla Inc (NASDAQ: TSLA).
Elon Musk-led Tesla has been trying to build a fleet of electric semi-trucks as well, though there has been no update on when it plans to begin production and deliveries.
In 2020, the U.S. Securities and Exchange Commission and the Department of Justice investigated Nikola over securities fraud allegations.
The company’s founder and former chairman, Trevor Milton, was accused of “lying about nearly all aspects of the business” as well as for securities fraud. He denied all the allegations before stepping down from the company.
Price Action: Nikola stock closed 0.65% lower at $9.14 a share on Wednesday and was trading 11.2% higher in after-hours.
Photo courtesy: Nikola Motor
