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Nikola Corporation has surpassed delivery estimates for its big hydrogen rigs in the first quarter, demonstrating progress in its transition to hydrogen technology from battery electric trucks.
This positive development comes after challenges that impacted the company’s share price and marks a significant milestone in Nikola’s strategic pivot.
Exceeding Delivery Estimates:
Nikola announced that it delivered 40 vehicles in the first quarter, exceeding the estimated 30 units projected by a consensus of four analysts polled by Visible Alpha.
The company’s ability to surpass delivery estimates reflects its commitment to advancing its hydrogen-powered fuel cell electric trucks and signifies a step forward in its operational performance.
Production and Inventory:
During the three months ending on March 31, Nikola produced 43 trucks. Additionally, the company stated that the remaining hydrogen big rigs in its inventory at the end of the quarter were scheduled for delivery in early April, indicating strong momentum in production and delivery processes.
2024 Delivery Target:
In February, Nikola set a target to deliver up to 350 hydrogen-powered fuel cell electric trucks in 2024.
This ambitious goal underscores the company’s confidence in its hydrogen technology and highlights its commitment to expanding its presence in the electric truck market.
Resolution of Issues:
Nikola addressed challenges related to battery-powered trucks, including coolant leaks in the battery pack leading to fires.
The company intended to return all battery-powered trucks to customers by the early third quarter, demonstrating its dedication to resolving issues promptly and ensuring customer satisfaction.
Market Response:
After the announcement, Nikola’s shares surged 8% in premarket trading. This positive market response reflects investor optimism regarding Nikola’s progress and potential growth prospects despite previous setbacks that led to a substantial decline in the company’s share price since its public debut in 2020.
