What happened
Battery and hydrogen fuel cell electric truck maker Nikola (NKLA -3.26%) has had its share of credibility issues. But the company has since distanced itself from its disgraced founder, Trevor Milton, and now has posted on its website that previous intentions to have its first battery electric vehicle (BEV) available in 2021 will come to fruition. After the promising news on the timeline of its first product, Nikola shares jumped 5.4% early Tuesday before paring those gains to 3.5% as the market neared its close today.
So what
Early questions about the company's technology and progress led to the resignation of Milton, who is now under indictment by the Justice Department for alleged "false and misleading statements to retail investors." But the company has posted on its website that its manufacturing timeline is on track. Nikola posted that its Tre BEV will indeed be available in 2021.
Nikola Tre battery electric truck cab. Image source: Nikola.
Now what
When Nikola reported its second-quarter financial update on Aug. 3, it said one of its planned milestones for the second half of 2021 was to "deliver pre-series Nikola Tre BEVs for use on public roads hauling customer freight." It seems well on track to accomplish that as it now states simply on its website that the Nikola Tre BEV will be "available 2021."
The company recently had other positive news when it announced that it received a U.S. Department of Energy grant for $2 million. The grant is for the development of Nikola's next-stage hydrogen fuel cell vehicle and to advance the development of its hydrogen fueling infrastructure.
The company likely won't convince investors to believe in it until it is bringing in revenue and customers are satisfied with its products. But for a small step along the way, some are rewarding the stock today as it progresses toward its goals.
