First look: Nikola shows off Coolidge factory with deliveries expected this quarter

First look: Nikola shows off Coolidge factory with deliveries expected this quarter

Article Originally Posted By PhoenixBusinessJournal On April 27, 2022

Nikola, the Phoenix-based maker of zero-emission vehicles, opened its factory doors to the public on Wednesday, giving a glimpse into the company’s early production progress.

Nikola Corp. (Nasdaq: NKLA) kicked off commercial production at its Coolidge plant last month and on Wednesday the company said it had produced its first 11 vehicles which are expected to go out to customers in the second quarter.

The event welcomed customers, suppliers and other stakeholders into the plant for a tour and a test ride in the Tre semitruck. Gov. Doug Ducey and other government officials were also on hand for the event.

“Today marks the day, when we transition to customer deliveries,” CEO Mark Russell said in an address to the audience at the event. “We're now going to be a revenue producing company and will be forevermore.”

The company expects to produce between 300 and 500 battery electric vehicles (BEVs) this year, a figure contingent on the amount of battery packs the company can get from its suppliers.

Production goals

Nikola came to life as a Utah startup back in 2015 and though the company has yet to generate revenue, that is expected to change in Q2. The company has previously said it expects to break even by 2024, once the Coolidge factory is fully built out and the company is selling both BEVs and hydrogen fuel cell electric vehicles (FCEVs).

The company is currently operating in what it calls Phase 1 of its Coolidge factory, an approximately 250,000 square foot space, running one assembly line on one shift a day and completing a single truck each day. The goal is to scale up production by adding hundreds of thousands of square feet of manufacturing space and eventually make five vehicles a day, then up to 10.