Trevor Milton, founder and CEO of Nikola Motor Company, speaks on stage during the official introduction of the company’s zero-emission products, including the Nikola Two hydrogen electric truck. (Photo: Brian Street/Freight Waves)
The company said the outpouring of support for the Nikola Motor hydrogen electric truck has been overwhelming, and based on feedback on April 16, 2019, at the official unveiling of the Nikola Two at Nikola World 2019, orders could be pouring in from customers hoping to be among the first to drive one. That doesn’t mean they’ll get one anytime soon.
According to Trevor Milton, founder and CEO of Nikola Motor Company, the company has temporarily stopped taking orders for the truck. At last count, Nikola had about $14 billion in pre-orders, but the new production facility to be built in Arizona will produce only 50,000 trucks a year, when fully operational, and will likely be closer to 35,000 when it starts up.
Full production of the Nikola Two is on track for 2022, Milton said during a press conference at Nikola World 2019.
“We have big brands working with us,” Milton said, referring to Anheuser-Busch, which has already agreed to buy up to 800 vehicles by 2025. “Our focus now is to get the truck out.”
Mark Russell, the company’s president, told FreightWaves that there is a backlog that is “beyond what we can build over the next several years.”
At some point, the truck will hit the roads, and in large numbers, Milton hopes. When that time comes, maintenance will be an important part of the equation.
In those cases, Ryder System will provide store coverage nationwide at one of its 800 locations. Service and warranty work performed at Ryder locations will be 100% covered under Nikola’s full leasing program.
Ryder has extensive experience working with electric vehicles and continues to build its fleet of electric vehicles through partnerships with Chanje, Workhorse and Daimler, as well as a distribution agreement with Nikola Motor. The company has more than 200 million miles of electric and natural gas vehicle experience to date.
For Nikola customers in Tennessee and Mississippi, Caterpillar dealer Thompson Machinery, an early investor in Nikola Motor Company, will also provide service.
“We’ve hired the best people to be our partners (in maintenance),” Melton said. “With technology, it doesn’t matter without the right people.”
The good news for starting Nikola owners is that maintenance won’t be a separate, fluctuating cost. Under the leasing program, owners pay a fixed monthly cost for the truck, hydrogen fuel, warranty and maintenance. Owners will have the option to trade in a new Nikola vehicle every 1 million miles or 84 months, whichever comes first, the company said. Other options will likely be available based on customer demand, Milton said.
The other good news? Milton insists the truck’s finances will result in it being less expensive to run than the current diesel model, and because the hydrogen production and power of the plant at Nikola will use solar and wind power, it will be a truly zero-emissions vehicle from production to consumption.
