Nikola shares are currently trading 13% higher at $10.50 per share after the company’s confirmation of its Tre Semi-Truck production starting. The production was scheduled to start by the end of the second quarter at Nikola‘s factory in Coolidge, Arizona.
The antecipation of the production dates will allow the company to deliver the first trucks in the second quarter. Nikola estimates to deliver between 300 and 500 trucks this year followed by increased production in 2023.
The announcement was made during Nikola’s Investors Day held on Wednesday, March 23. The company will host a presentation on Nikola’s leading Class 8 truck program and Energy business.
Earlier this week, Alta Equipment Group announced that it has been awarded the Arizona sales and service territory for Nikola Corporation. This agreement further expands Alta’s dealer territory with Nikola beyond the NY, NJ, eastern PA and New England markets, as announced in August of 2021, and will replace Empire Transport in Arizona.
Recently, the company finished phase 1 of Coolidge Factory (Arizona) allowing the company to produce 2,500 trucks per year. Construction is underway for Phase 2 with expected completion in Q1 2023.
On February 28th, DA Davidson Analyst Michael Shlisky reiterated Nikola’s Neutral rating and downgraded the price target from $12 to $8. On February 25th, J.P. Morgan Chase and Co. Analyst, Bill Peterson, lowered Nikola’s price target from $12 to $10 representing an upside of 24.38%. The analyst reiterated Nikola’s Neutral rating.
Recently, the company announced that it has appointed Lynn Forester de Rothschildto its Board of Directors. Forester de Rothschild is a co-founder of Inclusive Capital Partners (“In-Cap”) and will now represent the group on the board, replacing In-Cap co-founder, Jeff Ubben.