Nikola's Hydrogen Truck Deliveries Surge Despite Market Challenges
Key Ideas
- Nikola reports an 80% increase in deliveries of hydrogen-fuel cell trucks in Q2, exceeding expectations and signaling strong demand for big rigs.
- The company is transitioning away from battery-powered vehicles towards hydrogen-fuel cell trucks, aiming for full-year deliveries of 300 to 350 units.
- Recent customers include Walmart Canada and AiLO Logistics, with Nikola also expanding its refuelling station network to support hydrogen trucks.
- Despite challenges like high interest rates impacting EV demand and a significant drop in share value, Nikola's stock rose by 3% on the positive delivery news.
Nikola, based in Phoenix, Arizona, reported a remarkable 80% surge in deliveries of its hydrogen-fuel cell trucks in the second quarter of 2024 compared to the previous three months. The company delivered 72 Class 8 hydrogen trucks to wholesalers during this period, surpassing its own expectations of 50 to 60 trucks. This increase in deliveries indicates a promising demand for big rigs powered by hydrogen as Nikola shifts its focus from battery-powered vehicles. The brand has set a target of delivering between 300 to 350 units by the end of the year, showing confidence in the growth potential of hydrogen technology in the trucking industry. Notable recent partnerships include Walmart Canada and AiLO Logistics, with the latter placing an order for 100 hydrogen trucks. Nikola has also been proactive in establishing refuelling stations to support the growing fleet of hydrogen trucks. While challenges like high interest rates and economic constraints have impacted overall EV demand, leading to a decline of over 70% in Nikola's share value this year, the positive delivery figures boosted the company's shares by 3% in morning trade. Despite the market challenges, Nikola remains committed to the development and adoption of hydrogen-fuel cell trucks, showcasing resilience in the face of industry headwinds.