- Arizona-based hybrid truck company Nikola Corporation (NASDAQ: NKLA) is planning to break ground on its Coolidge, Arizona factory on July 23
Arizona-based hybrid truck company Nikola Corporation (NASDAQ: NKLA) is planning to break ground on its Coolidge, Arizona factory on July 23. And the company’s founder and chairman Trevor Milton said that the factory will employ thousands of people once it opens.
“Breaking! @nikolamotor factory in Coolidge Arizona breaks ground July 23rd. The ceremony will be held there to kick off construction of the plant that will build up to 35,000 zero-emission semi-trucks and create thousands of jobs,” wrote Milton on Twitter last week.
Wall Street analysts have started offering forecasts for their takes on Nikola. JPMorgan analyst Paul Coster issued a “Neutral” rating on Nikola — which is like saying “Hold.” Cowen analyst Jeffrey Osborne is bullish and rated the stock as a “Buy” with a target price of $79 according to Barron’s.
Osborne said that Nikola’s fuel-cell technology will be able to reduce the total cost of owning and operating trucks compared to diesel engines.
Nikola went public upon merging with a special-purpose acquisition company on June 3. Many investors and reports have been apprehensive about Nikola’s strategy and governance. Bloomberg published an article with the headline “Nikola Founder Exaggerated the Capability of His Debut Truck” and Milton threatened legal action against the reporter.
“Tesla fans had to endure hate from the world as they started out. Believe me, haters had plenty to hate on Elon for years. Now, many in the Tesla fanclub have become the haters themselves,” added Milton in a series of tweets. “You won’t change anyone’s minds. You won’t make a difference in any Investor’s eyes. Tearing someone down doesn’t raise your ship. We are going to do incredibly well regardless, so sit back and watch.”
The plant is expected to take between 12 and 18 months to build. The employees at the plant in Coolidge will work on the battery-electric Class 8 trucks. And eventually, it will be used for building 35,000 battery and hydrogen fuel cell electric trucks every year. And Nikola is also planning to start building the battery-powered Tre model in a joint venture with IVECO.
Nikola has nearly 15,000 orders for fuel cell trucks, which also included a firm commitment from Anheuser-Busch for buying up to 800 trucks.
And Nikola is expected to reveal more details about the facility in about a week when it starts taking orders for the Badger pickup truck. The Badger is expected to debut at the NikolaWorld event in Phoenix this December.
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