Nikola Corp. (NKLA) CEO Steve Girsky told analysts during the second-quarter (Q2) earnings call last Friday (August 9) that he was not concerned about competition from battery-electric vehicle (BEV) rivals, including Tesla.
Nikola, which specializes in hydrogen fuel cell (FCEV) technology and the necessary fueling equipment, builds the Class 8 TRE semi, which is available as an FCEV and a BEV. Last May at the 2024 ACT Expo, the manufacturer revealed its updated BEV TRE 2.0.
[Related: Nikola's CEO and software chief provide exclusive walkthrough of improved BEV 2.0]
During the call, Girsky responded to a question about the company's thoughts on upcoming competition from the Tesla Semi, another Class 8 battery-electric that will supposedly begin production in Nevada next year.
Girsky said that one of Nikola's biggest customers, which he did not name, began transitioning its fleet to zero-emission when it bought six BEV semis from a competitor and, despite being promised a range of 220 miles, the vehicles could only do 150 miles. In addition, those trucks required an hour and a half refueling time. The company then turned to Nikola.
"Now they're the biggest owner of our trucks, frankly. And one of the things [the customer] says is, I run two shifts a day [and] your fuel cell trucks weigh the same as everybody else's battery truck," Girsky said. " 'I can refuel them a lot faster, and it's very hard for me to get power to the port to my depot where it is.' So, his driver ends a shift, and the next one immediately takes over. They don't have to wait an hour and a half to recharge a truck."
Girsky then emphasized another key difference between FCEV and BEV semis.
"In his world, fuel cell is actually more efficient than battery. The other thing you have to deal with besides the range fluctuation, we have customers that, like battery trucks, who are coming over and setting up for demos that try everybody else's battery trucks, but what they're learning is battery trucks don't work everywhere. Colorado, for example, high altitude, cold weather, the range on batteries in cold weather degrades quickly. Our range will degrade a little bit but not anywhere near what a battery truck does.
So, there's use cases around both. We have customers who want to try ours, want to try everybody else's, including Tesla's, and we'll see where it all lands."
“Leading with the fuel cell right now I think makes perfect sense, where it’s less crowded in the marketplace,” Nikola CFO Tom Okray added.
For Q2 2024, Nikola reported sales of $31.3 million, up 318% from Q1. Sales of its FCEV semis also exceeded expectations, totaling 72 units, up 80% from Q1. The recall program for the BEV 2.0 remains on track for completion by year's end.
[Related: Nikola shares climb amid hiring announcement, new customers]
“In the last three quarters of serial production, we have demonstrated that Nikola is the offtake. We are the catalyst to disrupt Class 8 trucking to make zero-emission a reality,” said Girsky. “We are the only OEM with Class 8 FCEVs commercially available in North America today. Our trucks are put to the test every day by end fleet users, hauling freight and delivering to their customers. Q2 is an example of how we’re approaching the intersection of mission and reality and how Nikola is out front, charting the course.”
