Nikola announced this Tuesday that signed a partnership with the market leading commercial finance company ENGS Commercial Finance Co., a member of Mitsubishi HC Capital Group. The partnership aims to facilitate sales of Class 8 Nikola Tre battery-electric vehicles (BEVs) and Nikola Tre hydrogen fuel-cell electric vehicles (FCEVs). Start of production of the Tre BEVs began last week at Nikola’s Coolidge, Arizona manufacturing facility. The Nikola Tre FCEV deliveries are anticipated in 2023.
Working directly through the Nikola dealer network, ENGS will offer customer finance solutions for the purchase of Nikola vehicles, charging assets and infrastructure requirements to offer a broad range of financial solutions to Nikola customers. The agreement furthers Nikola’s commitment to secure partnerships with well-established transportation finance specialists to offer customized financing solutions for Nikola dealers and customers. ENGS will also help Nikola and its dealers facilitate sales by offering floorplan financing solutions to the dealers, parts and service financing and other related capital requirements.
“Our partnership with ENGS will strengthen our ability to help even more fleets transition to zero-emissions by offering a variety of innovative solutions for those customers that require alternative financing options,” said Nikola Chief Financial Officer Kim Brady.
“ENGS is very excited to partner with Nikola. We share many of the same goals on sustainability and technology,” said Jim Freund, ENGS Executive Vice President & Chief Marketing Officer. “We look forward to working closely with Nikola and their dealer network to provide the best customer finance products in the market to help promote the sale of Nikola trucks.” Tom Canepa, ENGS VP Sustainable Development Solutions, added, “Working with companies that promote Sustainable Development Goals initiatives is very important to us, and we are proud to partner with Nikola and its dealers.”
Last week, Nikola confirmed that it started producing its Tre Semi-Truck. 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 month, 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.