Nikola Corporation is an American manufacturer of heavy-duty commercial battery-electric vehicles, fuel-cell electric vehicles, and energy solutions. It presented several vehicle

concepts Concepts are defined as abstract ideas. They are understood to be the fundamental building blocks of the concept behind principles, thoughts and beliefs. They play an important role in all aspects of cognition. As such, concepts are studied by s ...

from 2016 to 2020, the first of which was a natural gas fueled turbine-electric semi truck. The company went public on June 4, 2020. In February 2022, the company projected deliveries of between 300 and 500 of its first battery-electric semitrucks — known as the Nikola Tre — to customers. The company delivered its first two battery-electric trucks in December 2021. Like

Tesla, Inc. Tesla, Inc. ( or ) is an American multinational automotive and clean energy company headquartered in Austin, Texas. Tesla designs and manufactures electric vehicles (electric cars and trucks), battery energy storage from home to grid- ...

, the company is named in honor of

Nikola Tesla Nikola Tesla ( ; ,"Tesla"
''

Phoenix, Arizona Phoenix ( ; nv, Hoozdo; es, Fénix or , yuf-x-wal, Banyà:nyuwá) is the capital and most populous city of the U.S. state of Arizona, with 1,608,139 residents as of 2020. It is the fifth-most populous city in the United States, and the on ...

. In September 2020, the Securities and Exchange Commission and the

Department of Justice A justice ministry, ministry of justice, or department of justice is a ministry or other government agency in charge of the administration of justice. The ministry or department is often headed by a minister of justice (minister for justice in a ...

launched investigations into securities fraud allegations. In July 2021, a United States federal grand jury indicted Nikola founder and former CEO Trevor Milton, but did not indict the company. The indictment charged Milton with three counts of criminal fraud—for "lying about 'nearly all aspects of the business'"—and two counts of

securities fraud Securities fraud, also known as stock fraud and investment fraud, is a deceptive practice in the stock or commodities markets that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in lo ...

. Publicly traded shares in Nikola dropped to around after falling from over $65 in mid-2020, when its market valuation had exceeded that of the

Ford Motor Company Ford Motor Company (commonly known as Ford) is an American multinational automobile manufacturer headquartered in Dearborn, Michigan, United States. It was founded by Henry Ford and incorporated on June 16, 1903. The company sells automobi ...

. In October 2022 Milton was found guilty in federal court of three of four counts of fraud against him, over statements he made while CEO of the company.

History

Founding (2014–2019)

Nikola Corporation was founded by Trevor Milton in 2014 in

Salt Lake City Salt Lake City (often shortened to Salt Lake and abbreviated as SLC) is the capital and most populous city of Utah, United States. It is the seat of Salt Lake County, the most populous county in Utah. With a population of 200,133 in 2020, th ...

Utah Utah ( , ) is a state in the Mountain West subregion of the Western United States. Utah is a landlocked U.S. state bordered to its east by Colorado, to its northeast by Wyoming, to its north by Idaho, to its south by Arizona, and to it ...

. , the first 5,000 Nikola One hydrogen-powered glider trucks were slated to be built by Fitzgerald Glider Kits in Tennessee ( gliders are truck vehicle platforms without engines). In March 2019, Nikola acquired a 389-acre parcel of land in

Coolidge, Arizona Coolidge is a city in Pinal County, Arizona, United States. According to the 2020 census, the city's population is 13,218. Coolidge is home of the Casa Grande Ruins National Monument. The monument was the first historic site to receive protect ...

, for $23 million, with future state and local tax breaks. Nikola said in 2019 that they expected truck factory construction to start in 2020, truck construction in 2021, and the fabrication of 35–50,000 trucks per year by 2023. In February 2019, Mark Russell was hired as company president. Russell had most recently been president and CEO of Nikola Corporation's investor,

Worthington Industries Worthington Industries, Inc. is a global diversified metals manufacturing company based in Columbus, Ohio. It is a steel processor and manufacturer of pressure vessels, such as propane, oxygen and helium tanks, hand torches, refrigerant and indu ...

. In April 2019, Nikola held the Nikola World event in

Scottsdale, Arizona , settlement_type = City , named_for = Winfield Scott , image_skyline = , image_seal = Seal of Scottsdale (Arizona).svg , image_blank_emblem = City of Scottsdale Script Logo.svg , nick ...

. The two-day midweek event included a public demo day to show off the Nikola Two truck, the Nikola Tre truck, the Nikola NZT UTV, and the Nikola WAV watercraft.

Going public (2020)

In March 2020, Nikola Corporation announced its plans to merge with VectoIQ Acquisition Corporation (ticker VTIQ), a publicly traded special-purpose acquisition company run by former General Motors (GM) vice-chairman Steve Girsky. This resulted in the combined company being listed on the NASDAQ exchange with the NKLA ticker symbol. As part of the merger, founder and CEO Trevor Milton had his title changed from CEO to Executive Chairman and Nikola President Mark Russell became president and CEO. Nikola's stock began trading on June 4, 2020, a day after the merger was completed. By June 9, the shares had more than doubled since they began trading, as investors continued to bet on the growth potential of electric transportation. At the end of June, Nikola started taking reservations for pickup truck, the Badger, even though a prototype had not been shown to the public. The company was valued at around $13 billion in early August 2020, compared to its revenue in the first six months of 2020 of $80,000 ($36,000 of which was attributed to installation of solar facilities for CEO Milton). On September 8, 2020, Nikola and GM announced a partnership, by which GM would acquire an 11% stake in Nikola (valued at approximately $2 billion at the time of the announcement). GM would also earn the right to nominate one member to Nikola's board. In return, GM agreed to use its manufacturing facilities to begin production of the Badger, as well as supply fuel cells and batteries to Nikola globally. Nikola stock jumped by 50% after the announcement.

Fraud allegations and guilty verdict (2020-2022)

On September 10, 2020,

short seller In finance, being short in an asset means investing in such a way that the investor will profit if the value of the asset falls. This is the opposite of a more conventional "long" position, where the investor will profit if the value of the ...

firm

Hindenburg Research Hindenburg Research LLC is an investment research firm with a focus on activist short-selling founded by Nathan Anderson in 2017 and based in New York City. Named after the 1937 Hindenburg disaster, which they characterize as a human-made avoidab ...

released a report accusing Nikola of being "an intricate fraud" perpetrated largely by Milton. Further verification by ''

Financial Times The ''Financial Times'' (''FT'') is a British daily newspaper printed in broadsheet and published digitally that focuses on business and economic current affairs. Based in London, England, the paper is owned by a Japanese holding company, Ni ...

'' and ''Research Enquirer'' confirmed the report's claim regarding a showcased Nikola One rolling down a gradual slope with no onboard propulsion and instead by using the force of gravity. The stock fell by 10% that day while the stock of GM, which had made an agreement with Nikola days earlier, fell by 4%. By September 12, Nikola stock had fallen by 36%. Nikola called these claims "false and misleading" and threatened legal action against Hindenburg. The US Attorney's Office for the Southern District of New York showed interest in the report. Previously, Milton had alleged that those who were short-selling Nikola stocks are fans of rival company Tesla and are "anti-Nikola or paid attack accounts". In response to the release of the Hindenburg report,

Mary Barra Mary Teresa Barra (née Makela; born December 24, 1961) is an American businesswoman who has been the chair and chief executive officer (CEO) of General Motors since January 15, 2014. She is the first female CEO of a 'Big Three' automaker. In D ...

, CEO of GM, said her company conducted appropriate diligence before its deal with Nikola. Reports that became public on September 14 stated that the Securities and Exchange Commission had started a probe into the fraud allegations and on September 15, the Department of Justice began an investigation into Nikola as well. On September 21, 2020, Executive Chairman, founder and former CEO Trevor Milton announced his resignation from Nikola and Steve Girsky became non-executive chairman of the board. News of the allegations caused the share price of Nikola Corp to drop by 20%. Following the resignation, Nikola then "issued copyright-takedown notices targeting critics on YouTube who iting fair useused clips of the promotional video in which a Nikola One semi-truck was seen rolling down a hill" without a working

drivetrain A drivetrain (also frequently spelled as drive train or sometimes drive-train) is the group of components that deliver mechanical power from the prime mover to the driven components. In automotive engineering, the drivetrain is the components o ...

. ''The Drive'' called Nikola's action an "abuse of YouTube's copyright takedown system". On September 23, BP backed away from a potential partnership to develop hydrogen refueling stations for Nikola's EV Trucks; Nikola's stock price fell by more than 25% intraday after BP's statement. The partnership was cited as a critical component in Nikola's business plan for its electric vehicle trucks powered by hydrogen fuel cells. Nikola had planned to announce the BP partnership days after the GM partnership. In November 2020, GM announced that the proposed deal to take an equity stake in Nikola would no longer occur. A revised deal was proposed, having GM provide Nikola with the promised fuel-cell technology, but leaving out the 11% stake in the company as well as no longer producing the Badger electric pickup truck for the company. The Badger was subsequently cancelled. In December 2020,

Republic Services Republic Services is an American waste disposal company whose services include non-hazardous solid waste collection, waste transfer, waste disposal, recycling, and energy services. It is the second largest provider of waste disposal in the Unite ...

stated that their previously announced partnership with Nikola would be terminated. The two companies had agreed to jointly develop zero-emissions garbage trucks in August 2020, including the production of at least 2,500 to 5,000 trucks for the Republic Services fleet by the start of 2023. Nikola's shares fell 9.8% after the announcement was released. Analysts call the canceled order a short-term setback, allowing the company to channel more focus towards the core of the business, being the production of semi-trucks designed for long-haul transport. In February 2021, the company publicly dropped their Powersports unit along with any plans they previously had to produce any of the powersports concept vehicles they had shown, including the Nikola WAV watersports vehicle. Also in February, as part of YE2020 filings with the SEC, the company stated that they now intended to produce just 50-100 Nikola Tre vehicles in 4Q2021. In June 2021, Nikola invested $50 million in a new hydrogen factory headed by Wabash Valley Resources to produce fuel for semi-truck fuel stations across the Midwest. In July 2021, the company announced plans to add five new

Class 8 truck Truck classifications are typically based upon the maximum loaded weight of the truck, typically using the gross vehicle weight rating (GVWR) and sometimes also the gross trailer weight rating (GTWR), and can vary among jurisdictions. United ...

dealers in Arizona, Texas, Colorado, California, New Mexico, Delaware, Florida, Maryland and Virginia. In late July 2021, a United States federal grand jury returned an indictment against Trevor Milton that included three counts of criminal fraud, including "lying about 'nearly all aspects of the business'" and two counts of

. Milton pleaded not guilty to the charges and was freed on $100 million bail, secured by two Utah properties. Nikola's share price dropped further and traded at $12 after falling from near $65 in June 2020, when Nikola had a company valuation in excess of the

. Following the indictment of Milton in July 2021, the company stated "We remain committed to our previously announced milestones and timelines and are focused on delivering Nikola Tre battery-electric trucks later this year (fewer than 100 Tre vehicles, per 1Q2021 SEC filings) from the company’s manufacturing facilities." In October 2022, Milton was found guilty in federal court of three of four counts of fraud against him, over statements he made while CEO of the company.

2022–present

In August 2022, Nikola announced that it would be acquiring the battery company Romeo Power. On August 4, 2022, it was reported that Nikola has delivered 48 vehicles to dealers, and reported a revenue of $18.1 million. In September 2022, all 93 of its Tre Class 8 battery-electric vehicles were recalled due to an issue with seat belt anchor assembly. Nikola published in October 2022 that they have completed the acquisition of Romeo and "look forward to executing on the opportunities ahead.”

Production vehicles

Nikola Tre BEV

The company makes the Nikola Tre BEV battery electric semi-truck, a

. The total battery capacity (9 Pack) is 733 kWh, the connector type is CCS (CCS1 and CCS2) and charging time (80%) 160 minutes @ 175 kW. Charging up to 350 kW is expected to be available via update in Q4 2022 Created to support the transition from diesel to zero-emission transportation, California’s Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) still has limited vouchers available for California fleets to reduce the cost of a Class 8 Nikola Tre battery-electric vehicle (BEV) by up to $150,000 per truck. The Nikola Tre BEV is eligible for the New York Truck Voucher Incentive Program ( NYTVIP) which provides vouchers, or discounts, to fleets across New York State that purchase or lease medium- and heavy-duty zero-emission battery-electric vehicles (BEV). Administered by the New York State Energy Research and Development Authority ( NYSERDA), NYTVIP helps make it easier for fleets to adopt zero-emission vehicle technologies by significantly reducing upfront costs. Purchasers of the Nikola Tre BEV can now qualify for an incentive valued at up to $185,000 per truck, with a scrappage requirement.

Concept vehicles

Nikola has publicly announced a number of vehicle design concepts since 2016 and unveiled a few concept vehicles that the company aims to

develop Develop or DEVELOP may refer to: * ''Develop'' (magazine), a trade publication for the video game industry * ''Develop'' (Apple magazine), a technical magazine formerly published by Apple Computer * Develop (chess), moving a piece from its origina ...

for public sale.

Nikola One

In 2016, the company unveiled a high-level design for a natural gas fuelled Class 8

truck A truck or lorry is a motor vehicle designed to transport cargo, carry specialized payloads, or perform other utilitarian work. Trucks vary greatly in size, power, and configuration, but the vast majority feature body-on-frame constructi ...

called the Nikola One, aimed then to be in production in 2020. The concept was changed in August 2016 to a hydrogen fuel-cell powered generator instead of a natural gas fuelled gas-turbine generator. In 2016 Nikola claimed to have received $2.3 Billion in pre-sales, to date no deliveries have been made. In May 2018, Nikola Motor Company filed a lawsuit against

seeking $2 billion in damages alleging that the

Tesla Semi The Tesla Semi is a battery electric vehicle, battery electric Truck classification#Class 8, Class 8 Semi-trailer truck, semi-truck by Tesla, Inc. The truck is powered by three motors, and is claimed by Tesla to have approximately three times ...

infringed on six patents that Nikola has been granted on the design of the Nikola One. Tesla responded that the lawsuit is without merit. In September 2019, the

Patent Trial and Appeal Board The Patent Trial and Appeal Board (PTAB) is an administrative law body of the United States Patent and Trademark Office (USPTO) which decides issues of patentability. It was formed on September 16, 2012, as one part of the America Invents Act. P ...

denied Tesla's request to invalidate Nikola's side-door patent. As of September 2020, the lawsuit is still ongoing. In May 2018,

Anheuser-Busch Anheuser-Busch Companies, LLC is an American brewing company headquartered in St. Louis, Missouri. Since 2008, it has been wholly owned by Anheuser-Busch InBev SA/NV ( AB InBev), now the world's largest brewing company, which owns multiple ...

placed a provisional purchase order for up to 800 leases of the hydrogen-powered truck versions, and Nikola claimed then that the trucks would start being delivered in 2020. By 2019, total pre-orders for truck leases encompassing all Nikola Class 8

models were claimed to be worth $14 billion.

Nikola Two

The Nikola Two is a semi-tractor truck

concept Concepts are defined as abstract ideas. They are understood to be the fundamental building blocks of the concept behind principles, thoughts and beliefs. They play an important role in all aspects of cognition. As such, concepts are studied by ...

designed to be technically identical to the Nikola One. Unlike the Nikola One, a prototype driving under its own power was demonstrated in 2019, including when hauling a cargo of beer for a future customer.

Nikola Tre

In November 2018, the company unveiled a Nikola Tre hydrogen-powered semi-truck

aimed at the European market. The hydrogen ICE Tre was also stated to be targeted for the Australian and Asian markets. Nikola said the Tre concept was to have and a range of . Former CEO Trevor Milton stated in 2018 that production was planned to begin at the same time as the US truck versions, which was then thought to be 2022–2023. In November 2019, the company unveiled a Nikola Tre electric truck concept (a rebadged version of the Iveco S-Way) that would also be aimed at the European market, just as the original hydrogen Tre had been. In July 2021, the company restated that they intend to deliver the first production Nikola Tre battery electric trucks later in 2021. The Tre was delivered to the Port of Los Angeles in December 2021. It has a 753 kWh battery pack, rechargeable from 10 to 80% in 120 minutes at 240 kW. California qualified the Tre for its HVIP program in January 2022 at up to $120,000, and New York at up to $185,000. The first customer delivery of the Nikola Tre was made in April 2022, with 11 vehicles being delivered.

Nikola NZT (Nikola Zero)

In 2016, a prototype concept, the Nikola NZT (briefly originally referred to as the Nikola Zero) was unveiled as a utility task vehicle with a 72 or 107 kWh battery. The concept was stated to have total, provided by a motor at each wheel, weigh , and use the same clearance suspension as the

Ford Raptor The Raptor is a nameplate used by Ford for its "high-performance" pickup trucks and SUVs. In use since the 2010 model year, the Raptor is designated as the highest-performance version of the F-150, Ranger and Bronco. Drawing its name from both ...

. By the end of 2016, it was listed as a powersports product, in the ''Nikola Powersports'' division. In 2017 Nikola took a journalist for a ride-along in a prototype of the car in a Utah desert to demonstrate the vehicle's capabilities. That was an open-cabin version, lacking doors or a windshield. On April 16, 2019, Nikola presented an NZT in Phoenix, Arizona, that appeared similar to the original one, except it had doors (but still lacked a roof and a windshield). Nikola says it offered rides in this vehicle to the attendees during the event, and published a video claiming to show it. The vehicle was supposed to have , and up to of range per electric charge. The vehicle was cancelled, alongside the rest of the powersports division, in February 2021.

Nikola Reckless

The Nikola Reckless was a

concept vehicle A concept car (also known as a concept vehicle, show vehicle or prototype) is a car made to showcase new styling and/or new technology. They are often exhibited at motor shows to gauge customer reaction to new and radical designs which may or ...

that was projected to be a military grade fully-electric tactical off-highway vehicle. A prototype of the vehicle was displayed in the International Special Operations Forces Industry Exhibition Conference in May 2018. The vehicle's chassis would be 4×4 although it could switch to

two-wheel drive Two-wheel-drive (2WD) denotes vehicles with a drivetrain that allows two wheels to be driven, and receive power and torque from the engine, simultaneously. Four-wheeled vehicles For four-wheeled vehicles (and by extension, vehicles with six, e ...

. It would weigh and would be able to carry up to . Also, the vehicle would have a machine gun. The vehicle was removed from the website with the cancellation of the powersports division.

Nikola WAV

The Nikola WAV was a concept vehicle unveiled in April 2019 as a Nikola Motors watersports offering and presented alongside the Nikola Zero. The Nikola WAV concept had a waterproof 4K resolution screen, and cruise control. The vehicle was cancelled, alongside the entire powersports division, in February 2021.

Nikola Badger

The Badger was a proposed

electric Electricity is the set of physical phenomena associated with the presence and motion of matter that has a property of electric charge. Electricity is related to magnetism, both being part of the phenomenon of electromagnetism, as described by ...

pickup truck announced in February 2020. Nikola planned two variants, the first powered by a combination of

hydrogen fuel cell A fuel cell is an electrochemical cell that converts the chemical energy of a fuel (often hydrogen fuel, hydrogen) and an oxidizing agent (often oxygen) into electricity through a pair of redox reactions. Fuel cells are different from most bat ...

s and batteries and second all-

, without fuel cells. The truck was intended to go to market in 2022 with the assistance of GM. In November 2020, GM pulled out of the deal and Nikola canceled the truck.

Gallery

File:NikolaTwo.jpg, Nikola Two File:NikolaTre.jpg, Nikola Tre File:NikolaTreSideView.jpg, Nikola Tre, side view File:NikolaReckless.jpg, Nikola Reckless File:NikolaRecklessSideView.jpg, Nikola Reckless, side view

References

External links

* {{Authority control 2014 establishments in Utah 2018 initial public offerings American companies established in 2014 Battery electric vehicle manufacturers Car manufacturers of the United States Companies listed on the Nasdaq Electric vehicle manufacturers of the United States Manufacturing companies based in Phoenix, Arizona Special-purpose acquisition companies Truck manufacturers of the United States