Prototypes of the Nikola One will hit the roads next year, and full production of the vehicle is scheduled for 2022.
2018 was a big year for Nikola, and investors continue to line up to back the hydrogen-electric truck startup. Next year may be even bigger.
Nikola announced on Wednesday that it has completed an oversubscribed Series C financing round that began in August. Wednesday’s announcement was for $105 million, bringing the total of the two-stage round to $205 million. CEO and founder Trevor Milton said the goal is to raise $150 million. The identity of the investors has not been identified.
“It’s primarily to prepare the truck for full production,” he told FreightWaves. “We will initiate a $1 billion round in the first quarter of next year. It usually takes about 4-5 months to complete a round this large, which will go to the factory and everything else.
Milton said construction of the plant is scheduled to begin next year. Both North American models, the hydrogen-electric Nikola One and Nikola Two (day cab), will be produced at the Arizona manufacturing plant once they enter full production. The company is spending more than $1 billion over the next six years to develop the facility on the west side of Phoenix.
Although 2018 was good, 2019 looks set to be even better for Nikola. The $1 billion funding round should push the company’s business through the roof, and drivers should start seeing the trucks on the road.
“(The year) 2019 is going to be a great year because you’re going to see all the products on the road,” Milton said. “The biggest criticism is when are you going to have trucks on the road? We’re really trying to help the industry and you can’t do that if the truck (can’t pull a load).”
Anheuser-Busch, which ordered up to 800 trucks earlier this year, will be among the companies likely to have trucks in its fleet by next year. The original prototypes will hit the roads next year for validation, and some larger orders will be released in the 2020-2021 timeframe, Melton said. Full production is scheduled to begin in 2022.
Last week, Nikola introduced its European model, the Nikola Tree. The Tre will make its official debut April 16-17 at Nikola World, a major event the company is planning in Phoenix. The Tre will be on display alongside the Nikola One and Nikola Two (day cab) vehicles at the event.
The European model, which will also be launched in Australia, will have a power of between 500 and 1,000 horsepower. Its range ranges from 500 to 1,200 kilometers, depending on the configuration. It will come in a 6×4 or 6×2 configuration.
The company said the Nikola Tri’s cost per mile is expected to be 10-20% lower than that of similar diesel engines in Europe.
Since the announcement, Nikola said it has booked more than $380 million in orders for Nikola Tree. Nikola previously said pre-orders for U.S. models had exceeded $8 billion.
Nikola is looking to locate a European location for the manufacturing facility.
“Now that we have secured funding and are oversubscribed, we are gearing up for the 2019 Nikola World Championships. At Nikola World, you will see the USA Nikola Two prototype in action and you will be able to set foot in the European Nikola Tree,” said Milton. “We also have some surprises to show.” From our power sports section and other new product announcements.”
By 2028, Nikola plans to have hydrogen coverage in the US, Canada, Europe and Australia. Milton said the process of starting construction of the network will begin in 2020.
The Anheuser-Busch contract calls for the construction of 28 hydrogen fueling stations across the country. Initial locations will be announced later this year, and the first trucks will be prototypes. The stations are expected to be open to the public.
Ryder will provide all sales and service warranty coverage in the deal, Melton said. Anheuser-Busch’s dedicated fleet numbers between 750 and 900 trucks, moving about a third of the company’s total shipments, the company said. The Nikola order will likely replace the entire dedicated fleet by 2025, however, Anheuser-Busch said it has existing commitments for other alternative fuel vehicles.
The trucks to be delivered to Anheuser-Busch will be the Nikola II model, which is the day cab version. It will have a range of 500 to 1,200 miles, produce no emissions, and can be refueled in 20 minutes.
