Nikola Corp shares (NASDAQ: NKLA) are up nearly 20% in premarket trading after the EV company said production for “Tre” had started at its Coolidge facility.
Deliveries to start in the second quarter
The Phoenix-headquartered company is scheduled for its annual investor day later on Thursday. Tre is its commercial truck that runs about 350 miles on a full-charged battery, making it best-suited for in-city applications.
Deliveries are likely to begin in the second quarter for the U.S. customers, while Europe would have to wait for another quarter. Production output is expected in the range of 300 to 500 trucks this year.
Nikola hasn’t launched any other product so far. Tre sales are estimated to generate roughly $117 million for the U.S. company this year, versus “nada” in 2021.
Nikola delivered on its promise
The news comes more than a month after Nikola said USA Truck Inc had agreed to buy 10 of its electric trucks, with an option to order another 90 in the future.
The announcement was well-received by the shareholders as it delivers on the promise the company made in February, when it reported its Q4 results. Nikola had targeted March 21st to begin Tre production.
Despite a sharp move up this morning, the stock is still down 30% from its high in November 2021.
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