Nikola celebrates commercial launch of its first hydrogen truck — almost seven years after faking a working prototype

US zero-emission truck maker Nikola Motors has commercially launched its first hydrogen-powered model almost seven years after faking a working prototype, which led to its then-CEO Trevor Milton being found guilty of securities fraud.

The Tre FCEV model — which Nikola says is the “only production hydrogen electric Class 8 truck on American roads today” — has begun rolling off the company’s production line in Coolidge, Arizona, which also produces the battery-electric version of the same vehicle.

The Tre FCEV has a range of up to 500 miles, and Nikola says that it “is expected to have among the longest ranges of all commercially available zero tailpipe emission Class 8 trucks”.

Despite facing accumulated losses of $2.4bn, and quarterly losses of more than $200m, the Phoenix-based company hopes the new model will help it rise from the flames.

Over scenes of stunning US landscapes, wild horses and flocks of birds, a deep-throated male narrator began speaking in reverent tones as if performing a voice-over on the trailer of a new Hollywood epic.

“There’s nothing like a breath of crisp dawn to rouse the spirit. Early birds get the best seat in the house,” he declared.

“We heard we’d never make it. But here we are. Underestimated. Unstoppable. Clearing the way out of the haze of ancient combustibles and seemingly indestructible industrial-era infrastructure. With something safer. Sensible. And sustainable. Designed right here, at home.

“It’s the only production hydrogen electric Class 8 truck on American roads today. With 500 miles of range. A behind-the-wheel experience unlike any other. And the ability to fuel in under 20 minutes. This isn’t another overpromised game-changer. It’s the first light of a new day. Made by and made for those who lead. Nikola. Follow none.”

There was no mention of the cost of the vehicle, but the press release did point to the multiple subsidies available that would reduce its cost — in California, New York state, Canada and British Columbia, not to mention the $40,000 clean commercial vehicle tax credit per vehicle from the US government’s Inflation Reduction Act.

“Progressing steadily towards its strategic goals, Nikola and its dealers have received 223 non-binding orders for its hydrogen fuel cell electric trucks from 23 customers,” said the Nikola press release. “Notable fleet operators such as J.B. Hunt, AJR Trucking, Biagi Bros. and TTSI, are among the growing list of customers committing to the future of sustainable trucking.”

Nikola first held a huge launch event for a hydrogen fuel-cell truck in December 2016, with an infamous video that seemingly showed the prototype driving along a road, was merely showing it rolling down hills without any force of its own, as Nikola later admitted.

The company began listing its shares on the Nasdaq stock exchange in June 2020, and at one point it was worth more than US auto giant Ford, with a share price of $65.90. But a report in October 2020 by short-seller outfit Hindenburg Research revealed “an ocean of lies” at the company, sending its stock plunging — and leading to Trevor Milton being found guilty of fraud (he is due to be sentenced in November).

The share price has fallen steadily since then, to an all-time low of $0.54 in June this year — a 99.2% fall. In May, Nikola received a delisting notice from Nasdaq as its share price fell below $1 for 30 consecutive days, but in June it began rising and has only spent a few days below $1 since then.

At the end of Thursday, Nikola stocks were trading at $1.65.

In its most recent filing to the US Securities and Exchange Commission, the company admitted that its accumulated losses since start-up had reached $2.4bn, with continuing doubts over whether the company can remain a going concern over the following 12 months.

“We believe that we will continue to incur operating and net losses each quarter until at least the time we begin to generate significant margin from our trucks, which may not happen,” the company notes in its filing, which is dated 4 August.

“We have determined... there is a substantial doubt that we will have sufficient funds to satisfy our obligations through the next twelve months from the date of issuance of this Quarterly Report.”

It continued: “Our ability to continue as a going concern is dependent on our ability to obtain the necessary financing to meet our obligations and repay our liabilities arising from the ordinary course of business operations when they become due. The outcome of these matters cannot be predicted with any certainty at this time.

“If we are unable to raise sufficient capital when needed, our business, financial condition and results of operations will be materially and adversely affected, and we will need to significantly modify or terminate our operations and our planned business activities.”