Nikola has slashed its production targets for 2021 just a week after company founder Trevor Milton was indicted in federal court with misleading investors.
Speaking during a recent conference call with analysts, Nikola chief executive Mark Russell said the company was facing “numerous” delays related to the acquisition of parts, prompting the chief financial officer to suggest Nikola will deliver just 25 to 50 vehicles this year, half of the 50-100 vehicles that it had previously estimated. The company added that it has already built 14 pre-production prototypes of its electric semi-truck.
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Auto News reports that Nikola is trying to move past Milton’s past involvement in the company and has scaled back its plans. While investor sentiment around the company is far from solid, the startup is moving forward with production plans and in the most recent quarter, completed the initial phase of construction at its plant in Coolidge, Arizona. It is reported that it has started building five prototype fuel-cell powered semi-trucks at the facility and is now moving forward with the second phase of construction at the site.
Nikola’s current plans call for it to launch its first hydrogen-powered fuel cell truck in 2023. It also expects to start building battery-electric trucks in Ulm, Germany this year through a joint venture with Iveco. Deliveries of this truck should start in the fourth quarter.
The U.S. Department of Justice claims that between November 2019 and September 2020, Trevor Milton schemed to defraud investors into buying shares of Nikola by making misleading statements about its products, technology, and future sales potential.
