Q2 2024 Nikola Corp Earnings Call

Speaker Change: Good morning and welcome to Nikola Corporation's second quarter 2024 Earnings and Business Update Call. Currently all participants are in a listen-only mode. We begin today's call with a short video presentation followed by management's prepared remarks.

Unknown Executive: for Earnings and Business Update Call. Currently, all participants are in a listen-only mode.

Operator: Weiss. This is your Earnings and Business Update call. Currently, all participants are in a listen-only mode. We will begin today's call with a short video presentation followed by management's prepared remarks. The question and answer session will follow the prepared remarks. As a reminder, this conference is being recorded. When you look at the Nikola, it's...

Unknown Executive: We begin today's call with a short video presentation, followed by management's prepared remarks.

Unknown Executive: A question and answer session will follow the prepared remarks. As a reminder, this conference is being recorded.

Speaker Change: A question and answer session will follow the prepared remarks. As a reminder, this conference is being recorded.

Unknown Executive: When you look at the Nikola, it's really designed from the ground up. When you compare it to a lot of data, they're legacy-ly. They ended up, you know, creating a very efficient front for us. The response has been phenomenal in our California operations. We see this vehicle playing a huge role in our ability to scale and grow with our customers. The usability of truck is awesome. The technology has actually made us more efficient. They're fast. They're smart. They're fun. And there's no gears, so they're not finding them and grinding them. They're just smooth and easy.

Speaker Change: When you look at the Nikola, it's really designed from the ground up. When you compare it to a lot of the other legacy OEs, they ended up creating a very efficient truck for us. The response has been phenomenal for our California operations. We see this vehicle playing a huge role in our ability to scale and grow with our customers. The usability of the truck is awesome. The technology has actually made us more efficient. They're fast, they're smart, they're fun, and there's no gears, so they're not finding them and grinding them. They're just smooth and easy. The drivers love them. Very driver-friendly. When I put on cruise control, it's smooth. The quietness and the torque and horsepower was amazing. I've driven almost every heavy-duty EV that's out there. I feel that Nikola's on top.

Unknown Speaker: The usability of the truck is awesome. Technology has actually made us more efficient.

Unknown Speaker: They're fast. They're smart. They're fun. And there's no gear, so they're not finding them and grinding them.

Unknown Speaker: They're just smooth and easy. The drivers love them. Very driver-friendly. When I put on cruise control, it's smooth. The quietness and the torque and horsepower are amazing. I've driven almost every heavy-duty EV that's out there. I feel that Nikola's on top.

Unknown Executive: The drivers love them. Very driver-friendly. When I put on cruise control, it's smooth. The quietness and the torque and horsepower was amazing. I've driven almost every heavy-duty EV that's out there. I feel that Nikola's on top. Pulls uphill, perfect. It's a nice ride. It's smooth, easy on your back. Because the truck is designed a little bit like on the taller side, I'm able to see more of my potential hazards. The turning radius on them is a lot better. Oh my God, the turning radius is so nice. Especially running in Southern California, where you have a lot more traffic, a lot tighter yards, the comfortability for the driver, sitting in that chair, eight to 12 hours a day.

Unknown Speaker: Boyd, John Bergen, G container, Werehog, Michael Shliskey, Gregory Lewis, Anthony Hefner, Deborah Ivine, TWOContransactions

Speaker Change: Pulls uphill perfect, it's a nice ride. Smooth, easy on your butt. Because the truck is designed a little bit like on the taller side, I'm able to see more of my potential hazards. The turning radius on them is a lot better. Oh my God, that turn radius is so nice. Especially running in Southern California where you have a lot more traffic, a lot tighter yards. The comfortability for the driver sitting in that chair, you know, 8 to 12 hours a day, you know, that seat is very comfortable. Being able to adjust these seats, it has lumbar support. It's the most comfortable ride I've ever had with any truck that I've been in. It's another level. But of course, they love the roomy cab. Just generally being able to stand up, it's not something that they can do in a traditional vehicle. I tell people I can do jumping jacks in this thing. It's the best thing.

Unknown Speaker: McCartney, Scott Group, Michael Shlisky, Gregory Lewis, Anastasiya Pasterick, Dhillon

Unknown Executive: You know, that seat is very comfortable. Being able to adjust the seat to have the lumbar support, it's the most comfortable ride I've ever had with Aoby's truck that I've been in. There's another level, but of course, they love the Rumi cab. It's just generally being able to stand up. It's not something they can do in a traditional vehicle.

Unknown Speaker: Being able to adjust these seats, it has lumbar support. It's the most comfortable ride I've ever had with any truck that I've been in. It's on another level.

Unknown Executive: I too will be glad to do so, but actually it's cool. It's the 10th date of classic trucks, especially compared to some of the other OEMs. They're ahead of the game.

Unknown Speaker: B. Jumper, Jackson Estate; it's the density of class A trucks, especially compared to some of the other

Unknown Speaker: and some of the other OEMs. They're ahead of the game. I'm very glad to be able to be in this truck. The support from Nikola has been pretty outstanding.

Unknown Executive: I'm very blessed to be able to be in this truck. The support from Nikola has been pretty offending. Unbelievable communication. The service has been top-notch. The Mithra team so far is just phenomenal. Nikola has been a great partner for us ever since we have embarked on this journey from which I was with what's the future face.

Unknown Speaker: Fendi, Unbelievable Communication, The service has been top-notch, and the network team so far has just been phenomenal. Nikola has been a great partner for us ever since we embarked on this journey.

Unknown Speaker: And we're excited about what the future holds.

Soei Shin: And good morning, everyone. My name is Zoe Shin, Head of Investor Relations. I'd like to welcome those listening by phone and those on the webcast to Nikola Corporation's second quarter 2024 earnings and business update call. Joining me today are Steve Gersky, President and CEO, and Tom Okre, Chief Financial Officer. Our press release detailing our financial and business results was distributed earlier this morning. This release can be found on the Investor Relations section of our website, along with presentation slides accompanying today's call. Today's discussion includes references to non-GAAP measures. The presentation includes adjusted EBITDA, earnings per share, adjusted free cash flow, and other non-GAAP measures.

Zoe Shin: And good morning, everyone. My name is Zoe Shin, Head of Investor Relations. I'd like to welcome those listening by phone and those on the webcast to Nikola Corporation's second quarter 2024 earnings and business update call. Joining me today are Steve Girsky, President and CEO, and Tom Okray, Chief Financial Officer.

Zoe Shin: And good morning, everyone. My name is Zoe Shin, Head of Investor Relations. I'd like to welcome those listening by phone and those on the webcast to Nikola Corporation's second quarter 2024 earnings and business update call.

Zoe Shin: Joining me today are Steve Girsky, President and CEO , and Tom Okray, Chief Financial Officer.

Zoe Shin: A press release detailing our financial and business results was distributed earlier this morning. This release can be found in the Investor Relations section of our website along with presentation slides accompanying today's call. Today's discussion includes references to non-GAAP measures. The presentation includes adjusted EBITDA, earnings per share, adjusted free cash flow, and other non-GAAP measures. These measures are reconciled to the most comparable U.S. GAAP measures and can be found at the end of the Q2 earnings press release we issued today.

Zoe Shin: A press release detailing our financial and business results was distributed earlier this morning. This release can be found on the Investor Relations section of our website, along with presentation slides accompanying today's call.

Zoe Shin: Today's discussion includes references to non-GAAP measures. The presentation includes adjusted EBITDA, earnings per share, adjusted free cash flow, and other non-GAAP measures.

Soei Shin: These measures are reconciled to the most comparable US GAAP measures and can be found at the end of the Q2 earnings press release we issued today. Today's discussion also includes forward-looking statements about our future results, expectations, and plans.

Zoe Shin: These measures are reconciled to the most comparable U.S. GAAP measures and can be found at the end of the Q2 earnings press release we issued today.

Zoe Shin: Today's discussion also includes forward-looking statements about our future results, expectations, and plans. However, actual results may differ materially from those stated, and some factors that cause actual results to differ are also explained at the end of today's earnings press release on page 2 of our earnings call deck and in our filings with the SEC. Forward-looking statements speak only as of the date on which they are made. You are cautioned not to put undue reliance on forward-looking statements. After Steve and Tom's prepared remarks, we'll take questions from our stockholders and then conclude with questions from analysts.

Zoe Shin: Today's discussion also includes forward-looking statements about our future results, expectations, and plans.

Soei Shin: James. Actual results may differ materially from those stated, and some factors that cause actual results to differ are also explained at the end of today's earnings press release, on page two of our earnings call deck, and in our filings with the SEC.

Zoe Shin: Actual results may differ materially from those stated, and some factors that cause actual results to differ are also explained at the end of today's earnings press release, on page 2 of our earnings call deck, and in our filings with the SEC.

Unknown Executive: for Earnings and Business Update Call. Currently, all participants are in a listen-only mode.

Soei Shin: Forward-looking statements speak only as of the date on which they are made. You are cautioned not to put undue reliance on forward-looking statements.

Zoe Shin: Forward-looking statements speak only as of the date on which they are made. You are cautioned not to put undue reliance on forward-looking statements.

Soei Shin: After Stephen Tom's prepared remarks, we'll take questions from our stockholders, and then conclude with questions from analysts.

Zoe Shin: After Steve and Tom's prepared remarks, we'll take questions from our stockholders and then conclude with questions from analysts.

Stephen Girsky: Thanks, Zoe, and good morning, everyone. Welcome to our second quarter 2024 earnings and business update call. Last quarter, I talked about executing plays, competing, and cultivating green shoots. Today, I want to talk about how Nikola is starting to bring together a purpose-driven coalition to build the hydrogen ecosystem. Like-minded partners include our dealers, fleet customers, suppliers, and strategic partners such as automotive OEMs, hydrogen producers, and big energy companies who have vested interests in the hydrogen economy and want to see it succeed as much as we do.

Steve Girsky: Thanks, Soei, and good morning everyone. Welcome to our second quarter, 2024, earnings and business update call. Last quarter, I talked about executing plays, competing, and cultivating green shoots.

Steve Girsky: Thanks, Zoe, and good morning, everyone. Welcome to our second quarter 2024 Earnings and Business Update call.

Speaker Change: Last quarter, I talked about executing plays, competing, and cultivating green shoots.

Steve Girsky: Today, I want to talk about how Nikola is starting to bring together a purpose-driven coalition to build the hydrogen ecosystem. Like-minded partners include our dealers, fleet customers, suppliers, and strategic partners such as automotive OEMs, hydrogen producers, and big energy who have vested interests in the hydrogen economy and want to see it succeed as much as we do. There is a need and urgency to accelerate our efforts. In the last three quarters of serial production, we have demonstrated that Nikola is the off-take. We are the catalyst to disrupt Class A trucking to make zero mission a reality.

Speaker Change: Today, I want to talk about how Nikola is starting to bring together a purpose-driven coalition to build the hydrogen ecosystem.

Speaker Change: Like-minded partners include our dealers, fleet customers, suppliers, and strategic partners such as automotive OEMs, hydrogen producers, and big energy who have vested interests in the hydrogen economy and want to see it succeed as much as we do.

Stephen Girsky: There is a need and urgency for us to accelerate our efforts. In the last three quarters of serial production, we have demonstrated that Nikola is the offtake. We are the catalyst to disrupt Class A trucking to make zero emission a reality. Programmed to date, Nikola fuel cell electric trucks and battery electric trucks have accumulated over 3 million road and test miles, avoiding 4,700 metric tons of CO2 emissions, which is like taking 1,100 gasoline-powered cars off the road for one year.

Speaker Change: There is a need and urgency to accelerate our efforts.

Speaker Change: In the last three quarters of serial production, we have demonstrated that Nikola is the offtake. We are the catalyst to disrupt Class A trucking to make zero emission a reality.

Steve Girsky: Program to date, Nikola fuel cell, electric trucks, and battery electric trucks have accumulated over three million road and test miles, avoiding 4,700 metric tons of CO2 emissions, which is like taking 1,100 gasoline powered cars off the road for one year. With the only OEM with class A FCEBs commercially available in North America today, our trucks are put to the test every day by fleet users, falling freight and delivering to their customers.

Speaker Change: Programmed to date, Nikola fuel cell electric trucks and battery electric trucks have accumulated over 3 million road and test miles, avoiding 4,700 metric tons of CO2 emissions, which is like taking 1,100 gasoline-powered cars off the road for one year.

Stephen Girsky: We're the only OEM with Class 8 FCEBs 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. First, we're doing what we said we would do.

Unknown Executive: We begin today's call with a short video presentation followed by management's prepared remarks. A question and answer session will follow the prepared remarks. As a reminder, this conference is being recorded.

Speaker Change: We're the only OEM with Class VIII FCEBs commercially available in North America today.

Speaker Change: Our trucks are put to the test every day by end fleet users hauling freight and delivering to their customers.

Unknown Executive: When you look at the Nikola, it's really designed from the ground up. When you compare it to a lot of data, they're legacy-ly. They ended up, you know, creating a very efficient front for us. The response has been phenomenal in our California operations. We see this vehicle playing a huge role in our ability to scale and grow with our customers. The usability of truck is awesome. The technology has actually made us more efficient.

Steve Girsky: Q2 is an example of how we're approaching the intersection of mission and reality and how Nikola is out front charting the course. First, we're doing what we said we would do. At the end of Q2, we announced we had wholesale 72 hydrogen fuel cell electric trucks, which exceeded the high end of the guidance range of 50 to 60 trucks by 20%. Q2 wholesale deliveries were up 80% from Q1 and comprised of several repeat customers, which is a testament to the performance of our trucks and customer satisfaction. We're delivering high-level fueling solutions to support volume ramp up.

Unknown Executive: They're fast. They're smart. They're fun. And there's no gears, so they're not finding them and grinding them. They're just smooth and easy. The driver's love them. Very driver-friendly. When I put on cruise control, it's smooth. The quietness and the torque and horsepower was amazing. I've driven almost every heavy-duty EV that's out there. I feel that Nikola's on top. Pulls uphill, perfect. It's a nice ride. It's smooth, easy on your back. Because the truck is designed a little bit like on the taller side, I'm able to see more of my potential hazards.

Unknown Executive: The turning radius on them is a lot better. Oh my god, the turning radius is so nice. Especially running in Southern California, where you have a lot more traffic, a lot tighter yards, the comfortability for the driver, sitting in that chair, eight to 12 hours a day. You know, that seat is very comfortable. Being able to adjust the seat to have the lumbar support, it's the most comfortable ride I've ever had with Aoby's truck that I've been in. There's another level, but of course, they love the Rumi cab. It's just generally being able to stand up. It's not something they can do in a traditional vehicle.

Speaker Change: Q2 is an example of how we're approaching the intersection of mission and reality and how NICOLA is out front charting the course.

Unknown Executive: I too will be glad to do so, but actually it's cool. It's the 10th date of classic trucks, especially compared to some of the other OEMs. They're ahead of the game. I'm very blessed to be able to be in this truck. The support from Nikola has been pretty offending. Unbelievable communication. The service has been top notch. The Mithra team so far is just phenomenal. Nikola has been a great partner for us ever since we have embarked on this journey from which I was with what's the future face.

Stephen Girsky: At the end of Q2, we announced we had wholesaled 72 hydrogen fuel cell electric trucks, which exceeded the high end of the guidance range of 50 to 60 trucks by 20%. Q2 wholesale deliveries were up 80% from Q1 and comprised several repeat customers, which is a testament to the performance of our trucks and customer satisfaction. We're delivering HILA fueling solutions to support volume ramp-up. Since the Q1 call, we opened a HILA-branded station in Toronto, Canada, and completed commissioning a modular station in Santa Fe Springs, California.

Speaker Change: First, we're doing what we said we would do. At the end of Q2, we announced we had wholesaled 72 hydrogen fuel cell electric trucks, which exceeded the high end of the guidance range of 50 to 60 trucks by 20 percent.

Soei Shin: And good morning, everyone. My name is Zoe Shin, head of investor relations. I'd like to welcome those listening by phone and those on the webcast to Nikola Corporation's second quarter, 2024, earnings and business update call. Joining me today are Steve Gersky, president and CEO and Tom Okre, chief financial officer. Our press release detailing our financial and business results was distributed earlier this morning. This release can be found on the investor relations section of our website, along with presentation slides accompanying today's call.

Speaker Change: Q2 wholesale deliveries were up 80% from Q1 and comprised of several repeat customers, which is a testament to the performance of our trucks and customer satisfaction.

Speaker Change: We're delivering HILA fueling solutions to support volume ramp up.

Steve Girsky: Since the Q1 call, we opened a high-level branded station in Toronto, Canada, and completed commissioning a modular station in Santa Face Springs in Southern California. One of the resounding benefits of our modular refueling strategy is our ability to quickly pivot to meet the demands of end fleets. As such, we added another modular fueler at our existing station in Ontario, California, to double capacity. Likewise, we provided access for Nikola end fleets to fuel at Shell's heavy-duty station in Ontario, California, where density has been clearly growing.

Speaker Change: Since the Q1 call, we opened a HILA-branded station in Toronto, Canada, and completed commissioning a modular station in Santa Fe Springs in Southern California.

Stephen Girsky: One of the resounding benefits of our modular refueling strategy is our ability to quickly pivot to meet the demands of end fleets. As such, we added another modular fueler at our existing station in Ontario, California, to double capacity. Likewise, we provided access for Nikola and fleets to fuel at Shell's heavy-duty station in Ontario, California, where density has been clearly growing. Second, we are demonstrating national account interest.

Speaker Change: One of the resounding benefits of our modular refueling strategy is our ability to quickly pivot to meet the demands of end fleets. As such, we added another modular fueler at our existing station in Ontario, California to double capacity.

Speaker Change: Likewise, we provided access for Nikola and fleets to fuel at Shell's heavy duty station in Ontario, California, where density has been clearly growing.

Soei Shin: Today's discussion includes references to non-gap measures. The presentation includes adjusted EBITDA, earnings for share, adjusted free cash flow, and other non-gap measures. These measures are reconciled to the most comparable US gap measures and can be found at the end of the Q2 earnings press release we issued today. Today's discussion also includes forward-looking statements about our future results, expectations, and plans. James. Actual results may differ materially from those stated, and some factors that cause actual results to differ are also explained at the end of today's earnings press release, on page two of our earnings call deck, and in our filings with the SEC.

Steve Girsky: Second, we are demonstrating national account interest - Drist. Last quarter, we talked about the importance of expanding our reach to meet the demands of Enfleets virtually anywhere in North America. Walmart, Canada, is the first major retailer in Canada to introduce a hydrogen fuel cell electric semi-truck to its fleet. We also received repeat orders from two national accounts. Nikola's profitability flywheel is beginning to gain momentum with these national accounts as each Enfleet grows its zero-mission presence to achieve decarbonization goals.

Soei Shin: Forward-lucking statements speak only as of the date on which they are made. You are cautioned not to put undue reliance on forward-lucking statements. After Stephen Tom's prepared remarks, we'll take questions from our stockholders, and then conclude with questions from analysts.

Stephen Girsky: Last quarter, we talked about the importance of expanding our reach to meet the demands of end fleets virtually anywhere in North America. Walmart Canada is the first major retailer in Canada to introduce a hydrogen fuel cell electric semi truck to its fleet. We also received repeat orders from two national accounts.

Speaker Change: Second, we are demonstrating national account interest.

Speaker Change: Last quarter, we talked about the importance of expanding our reach to meet the demands of N fleets virtually anywhere in North America.

Speaker Change: Walmart Canada is the first major retailer in Canada to introduce a hydrogen fuel cell electric semi truck to its fleet.

Stephen Girsky: Nikola's profitability flywheel is beginning to gain momentum with these national accounts as each end fleet grows its zero emission presence to achieve decarbonization goals. Third, we are creating and monetizing alternative revenue and profit streams. Nikola realized its initial sale of CARB regulatory credits from the sale of NOX and PM credits. As volume ramps up and new CARB regulations go into effect, these new revenue streams will grow. Fourth, Nikola is in a unique position to attract prospective partners.

Speaker Change: We also received repeat orders from two national accounts.

Speaker Change: Nikola's profitability flywheel is beginning to gain momentum with these national accounts as each end fleet grows its zero emission presence to achieve decarbonization goals.

Steve Girsky: Third, we are creating and monetizing alternative revenue in profit streams. Nikola realized its initial sale of carb regulatory credits from the sale of NOx and PM credits. As volume ramps up and new carb regulations go into effect, these new revenue streams will grow.

Speaker Change: Third, we are creating and monetizing alternative revenue and profit streams.

Speaker Change: Nikola realized its initial sale of CARB regulatory credits from the sale of NOx and PM credits. As volume ramps up and new CARB regulations go into effect these new revenue streams will grow.

Steve Girsky: Fourth, Nikola is in a unique position to attract prospective partners. Again, Nikola FCEVs are the only Class 8 hydrogen fuel cell trucks commercially available in North America today. The market acceptance of our FCEVs bears out with every zero-mission mile driven. Therefore, not only are we getting more calls from fleets interested in deploying fuel cell trucks, but also from strategic partners like automotive OEMs, suppliers, hydrogen producers, and big energy who recognize our key role as a first mover in the hydrogen economy.

Speaker Change: Fourth, Nikola is in a unique position to attract prospective partners. Again, Nikola FCEVs are the only Class VIII hydrogen fuel cell trucks commercially available in North America today.

Stephen Girsky: Again, Nikola FCEVs are the only Class VIII hydrogen fuel cell trucks commercially available in North America today. The market acceptance of our FCEVs bears this out with every zero-emission mile driven. Therefore, not only are we getting more calls from fleets interested in deploying fuel cell trucks, but also from strategic partners like automotive OEMs, suppliers, hydrogen producers, and big energy, who recognize our key role as a first mover in the hydrogen economy. Now, let's get to the business update.

Speaker Change: The market acceptance of our FCEVs bears out with every zero-mission mile driven.

Speaker Change: Therefore, not only are we getting more calls from fleets interested in deploying fuel cell trucks, but also from strategic partners like automotive OEMs, suppliers, hydrogen producers, and big energy, who recognize our key role as a first mover in the hydrogen economy.

Steve Girsky: Now let's get to the business update. We are executing our plan. We said we'd wholesale 50-60 fuel cell trucks in Q2, and we delivered 72 trucks to our dealer network, beating guidance by 20%. This marks the third consecutive quarter where we either net or beat volume guidance. We said we were focused on national accounts to scale, and we signed our first deal with Walmart Canada and received repeat orders from two other national accounts. Walmart Canada is the first major retailer in North America to introduce a Nikola Class 8 fuel cell electric vehicle to its fleet.

Stephen Girsky: We are executing our plan. We said we'd wholesale 50 to 60 fuel cell trucks in Q2, and we delivered 72 trucks to our dealer network, beating guidance by 20%. This marks the third consecutive quarter where we either met or beat volume guidance. We said we were focused on national accounts to scale, and we signed our first deal with Walmart Canada and received repeat orders from two other national accounts.

Speaker Change: Now let's get to the business update.

Speaker Change: We are executing our plan. We said we'd wholesale 50 to 60 fuel cell trucks in Q2, and we delivered 72 trucks to our dealer network, beating guidance by 20%.

Speaker Change: This marks the third consecutive quarter where we either met or beat volume guidance.

Speaker Change: We said we were focused on national accounts to scale and we signed our first deal with Walmart Canada and received repeat orders from two other national accounts.

Stephen Girsky: Walmart Canada is the first major retailer in North America to introduce a Nikola Class A fuel cell electric vehicle to its fleet. This collaboration aligns perfectly with Walmart Canada's mission to drive innovation and environmental responsibility in the transportation industry. Repeat Fleet Customer IMC, the largest marine drainage company in the US, ordered another 10 fuel cell trucks from our dealer network in Q2. Year-to-date, this marks a total of 30 Nikola fuel cell trucks in its fleet.

Speaker Change: Wal-Mart Canada is the first major retailer in North America to introduce a Nikola Class 8 fuel cell electric vehicle to its fleet.

Steve Girsky: This collaboration aligns perfectly with our mission to drive innovation and environmental responsibility in the transportation industry. Repeat fleet customer IMC, the largest marine drainage company in the U.S. ordered another 10 fuel cell trucks from our dealer network in Q2. Year to date, this marks a total of 30 Nikola fuel cell trucks in its fleet. IMC has a goal to replace all diesel tractors by 2028. An existing carrier and one of the largest intermodal fleets in North America placed a double-digit order with our dealer network in Q2. Day two have stated decarbonization goals to be achieved in the next decade.

Speaker Change: This collaboration aligns perfectly with our mission to drive innovation and environmental responsibility in the transportation industry.

Speaker Change: Repeat fleet customer IMC, the largest marine drainage company in the U.S. ordered another 10 fuel cell trucks from our dealer network in Q2.

Speaker Change: Year-to-date, this marks a total of 30 Nikola fuel cell trucks in its fleet.

Stephen Girsky: IMC has a goal to replace all diesel tractors by 2028. An existing carrier and one of the largest intermodal fleets in North America placed a double-digit order with our dealer network in Q2. They, too, have stated decarbonization goals to be achieved in the next decade.

Speaker Change: IMC has a goal to replace all diesel tractors by 2028.

Speaker Change: An existing carrier and one of the largest intermodal fleets in North America placed a double-digit order with our dealer network in Q2.

Stephen Girsky: Thanks, Soei, and good morning everyone. Welcome to our second quarter, 2024, earnings and business update call. Last quarter, I talked about executing plays, competing, and cultivating green shoots. Today, I want to talk about how Nikola is starting to bring together a purpose-driven coalition to build the hydrogen ecosystem. Like-minded partners include our dealers, fleet customers, suppliers, and strategic partners such as Automotive OEMs, hydrogen producers, and big energy who have vested interests in the hydrogen economy and want to see it succeed as much as we do.

Stephen Girsky: There is a need and urgency to accelerate our efforts. In the last three quarters of serial production, we have demonstrated that Nikola is the off-take. We are the catalyst to disrupt class A trucking to make zero mission a reality. Program to date, Nikola fuel cell, electric trucks, and battery electric trucks have accumulated over three million road and test miles, avoiding 4700 metric tons of CO2 emissions, which is like taking 1100 gasoline powered cars off the road for one year.

Stephen Girsky: With the only OEM with class A FCEBs commercially available in North America today, our trucks are put to the test every day by and fleet users, falling 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. First, we're doing what we said we would do. At the end of Q2, we announced we had wholesale 72 hydrogen fuel cell electric trucks, which exceeded the high end of the guidance range of 50 to 60 trucks by 20%.

Speaker Change: They too have stated decarbonization goals to be achieved in the next decade.

Stephen Girsky: On Chart 6, we demonstrate how we're meeting the use case of end fleets with data-driven quality and performance. To date, 12 in-service N fleets have accumulated over 550,000 miles, validating our average fuel economy benchmark of 7.2 miles per kilogram. It's important to note that fuel economy varies with driver usage, freight routes, and payloads. Some dreyage fleet users, for example, achieve fuel economy greater than 8 miles per kilogram, while other fleet users that travel longer distances with heavier payloads achieve fuel economy slightly lower than the benchmark.

Steve Girsky: On chart six, we demonstrate how we're meeting the use case of end fleets with data-driven quality and performance. To date, 12 in service end fleets have accumulated over 550,000 miles, validating our average fuel economy benchmark of 7.2 miles per kilogram. It's important to note that fuel economy varies with driver usage, freight routes, and payloads. Some drainage fleet users, for example, achieve fuel economy greater than 8 miles a kilogram, while other fleet users that travel longer distances with heavier payloads achieve fuel economy slightly lower than the benchmark.

Speaker Change: On chart six, we demonstrate how we're meeting the use case of end fleets with data-driven quality and performance.

Stephen Girsky: Q2 wholesale deliveries were up 80% from Q1 and comprised of several repeat customers which is a testament to the performance of our trucks and customer satisfaction. We're delivering high-level fueling solutions to support volume ramp up. Since the Q1 call, we opened a high-level branded station in Toronto, Canada, and completed commissioning a modular station in Santa face springs in Southern California. One of the resounding benefits of our modular refueling strategy is our ability to quickly pivot to meet the demands of end fleets.

Speaker Change: To date, 12 in-service end fleets have accumulated over 550,000 miles, validating our average fuel economy benchmark of 7.2 miles per kilogram.

Stephen Girsky: As such, we added another modular fueler at our existing station in Ontario, California, to double capacity. Likewise, we provided access for Nikola end fleets to fuel at Shell's heavy duty station in Ontario, California, where density has been clearly growing. Second, we are demonstrating national account interest- Drist. Last quarter, we talked about the importance of expanding our reach to meet the demands of Enfleets virtually anywhere in North America. Walmart, Canada is the first major retailer in Canada to introduce a hydrogen fuel cell electric semi-truck to its fleet.

Stephen Girsky: We also received repeat orders from two national accounts. Nikola's profitability flywheel is beginning to gain momentum with these national accounts as each Enfleet grows its zero-mission presence to achieve decarbonization goals. Third, we are creating and monetizing alternative revenue in profit streams. Nikola realized its initial sale of carb regulatory credits from the sale of NOx and PM credits. As volume ramps up and new carb regulations go into effect, these new revenue streams will grow.

Speaker Change: It's important to note that fuel economy varies with driver usage, freight routes, and payloads.

Speaker Change: Some dreyage fleet users, for example, achieve fuel economy greater than 8 miles a kilogram, while other fleet users that travel longer distances with heavier payloads achieve fuel economy slightly lower than the benchmark.

Stephen Girsky: Fourth, Nikola is in a unique position to attract prospective partners. Again, Nikola FCEVs are the only class 8 hydrogen fuel cell trucks commercially available in North America today. The market acceptance of our FCEVs bears out with every zero-mission mile driven. Therefore, not only are we getting more calls from fleets interested in deploying fuel cell trucks, but also from strategic partners like automotive OEMs, suppliers, hydrogen producers and big energy who recognize our key role as a first mover in the hydrogen economy.

Steve Girsky: Mark. If you're a beverage hauler, the heavier payload per range of the fuel cell vehicle makes it the right truck for you. Early field data tells us that the average trip distance between refueling is 260 miles or twice as far as the Bev 2.0 between charges. If your distribution routes are near, either Ontario or Long Beach, one fill may be enough for your entire route. We've also observed that over 40 N-fleet users have traveled 400 plus miles between refueling. In fact, this longer distance, which is like driving from the port of Oakland to the port of Los Angeles or Long Beach, has been completed roughly 130 times since we've been tracking data.

Stephen Girsky: If you're a beverage hauler, the heavier payload per range of the fuel cell vehicle makes it the right truck for you. Early field data tells us that the average trip distance between refueling is 260 miles, or twice as far as the BEV 2.0 between charges. If your distribution routes are near either Ontario or Long Beach, one fill may be enough for your entire route. We've also observed that over 40 N fleet users have traveled 400 miles or more between refueling. In fact, this longer distance, which is like driving from the Port of Oakland to the Port of Los Angeles or Long Beach, has been completed roughly 130 times since we've been tracking data.

Stephen Girsky: Now let's get to the business update. We are executing our plan. We said we'd wholesale 50-60 fuel cell trucks in Q2 and we delivered 72 trucks to our dealer network, beating guidance by 20%. This marks the third consecutive quarter where we either net or beat volume guidance. We said we were focused on national accounts to scale and we signed our first deal with Walmart Canada and received repeat orders from two other national accounts.

Speaker Change: If you're a beverage hauler, the heavier payload per range of the fuel cell vehicle makes it the right truck for you.

Stephen Girsky: Walmart Canada is the first major retailer in North America to introduce a Nikola class 8 fuel cell electric vehicle to its fleet. This collaboration aligns perfectly with our mission to drive innovation and environmental responsibility in the transportation industry. Repeat fleet customer IMC, the largest marine drainage company in the U.S, ordered another 10 fuel cell trucks from our dealer network in Q2. Year to date, this marks a total of 30 Nikola fuel cell trucks in its fleet.

Speaker Change: Early field data tells us that the average trip distance between refueling is 260 miles or twice as far as the BEV 2.0 between charges.

Stephen Girsky: IMC has a goal to replace all diesel tractors by 2028. An existing carrier and one of the largest intermodal fleets in North America placed a double digit order with our dealer network in Q2. Day two have stated decarbonization goals to be achieved in the next decade. On chart six, we demonstrate how we're meeting the use case of end fleets with data driven quality and performance. To date, 12 in service end fleets have accumulated over 550,000 miles validating our average fuel economy benchmark of 7.2 miles per kilogram.

Speaker Change: If your distribution routes are near either Ontario or Long Beach, one fill may be enough for your entire route.

Speaker Change: We've also observed that over 40 N fleet users have traveled 400 plus miles between refueling. In fact, this longer distance, which is like driving from the Port of Oakland to the Port of Los Angeles or Long Beach, has been completed roughly 130 times since we've been tracking data.

Steve Girsky: It's all about the use case and how our trucks are meeting unique demands of N-fleets. The increased payload capacity per mile was significantly reduced refueling time compared to the Bev, ultimately means increased truck uptime for N-fleet users. As we deploy more highly refueling stations, we expect the in-service range to increase.

Stephen Girsky: It's all about the use case and how our trucks are meeting unique demands of Enfleet. The increased payload capacity per mile with significantly reduced refueling time compared to the BEV ultimately means increased truck uptime for end fleet users. As we deploy more high-refueling stations, we expect the in-service range to increase. Likewise, if you're a first mile logistics operator, the BEV 2.0 may be the right truck for you. Early field data collected so far tells us that the average trip distance between charging is 130 miles. If you're running loads from the port to the warehouse and charging is available at the depot, then the BEV 2.0 will fit your needs.

Speaker Change: It's all about the use case and how our trucks are meeting unique demands of end fleets.

Speaker Change: The increased payload capacity per mile with significantly reduced refueling time compared to the BEV ultimately means increased truck uptime for in-fleet users.

Stephen Girsky: It's important to note that fuel economy varies with driver usage, freight routes, and payloads. Some drainage fleet users, for example, achieve fuel economy greater than 8 miles a kilogram, while other fleet users that travel longer distances with heavier payloads achieve fuel economy slightly lower than the benchmark. Mark. If you're a beverage hauler, the heavier payload per range of the fuel cell vehicle makes it the right truck for you. Early field data tells us that the average trip distance between refueling is 260 miles or twice as far as the Bev 2.0 between charges.

Speaker Change: As we deploy more highly refueling stations, we expect the in-service range to increase.

Steve Girsky: Likewise, if you're a first mile logistics operator, the Bev 2.0 may be the right truck for you. Early field data collected so far tells us that the average trip distance between charging is 130 miles. If your running loads from the port to the warehouse and charging is available at the depot, then the Bev 2.0 will fit your needs. Again, we're on the field collecting data and learning how our trucks are being deployed. We're here to help our N-fleets optimize their trucks so they perform the way they are built to.

Speaker Change: Likewise, if you're a first mile logistics operator, the BEV 2.0 may be the right truck for you.

Speaker Change: Early field data collected so far tells us that the average trip distance between charging is 130 miles.

Speaker Change: If you're running loads from the port to the warehouse, and charging is available at the depot, then the BEV 2.0 will fit your needs. Again, we're on the field, collecting data, and learning how our trucks are being deployed.

Stephen Girsky: Again, we're on the field collecting data and learning how our trucks are being deployed. We're here to help our end fleets optimize their trucks so they perform the way they are built to. Lastly, we often get questions about comparing our fuel cell electric vehicle to a traditional diesel truck. On a converted basis, our FCEVs outperform the average Class A truck on fuel economy and avoidance of tailpipe emissions. We estimate the average miles per gallon diesel equivalent of our FCEV is 8.0, or 23% better than the Class 8 fuel economy average of 6.5 miles per diesel gallon, per the DOE.

Stephen Girsky: If your distribution routes are near, either Ontario or Long Beach, one fill may be enough for your entire route. We've also observed that over 40 N-fleet users have traveled 400 plus miles between refueling. In fact, this longer distance, which is like driving from the port of Oakland to the port of Los Angeles or Long Beach, has been completed roughly 130 times since we've been tracking data. It's all about the use case and how our trucks are meeting unique demands of N-fleets.

Speaker Change: We're here to help our end fleets optimize their trucks so they perform the way they are built to.

Steve Girsky: Lastly, we often get questions about comparing our fuel cell electric vehicle to a traditional diesel truck. On a converted basis, our FCEVs outperform the average Class A truck on fuel economy and avoidance of tailpipe emissions. We estimate the average miles per gallon diesel equivalent of our FCEV is 8.0 or 23 percent better than the Class A fuel economy average of 6.5 miles per diesel gallon equivalent per the DOE. Moreover, in-service FCEVs have consumed over 77 metric tons of hydrogen dispensed at various Nikola fueling solutions. In total, we estimate our FCEV N-fleet operations have avoided approximately 867 metric tons of CO2 tailpipe emissions.

Speaker Change: Lastly, we often get questions about comparing our fuel cell electric vehicle to a traditional diesel truck.

Speaker Change: On a converted basis, our FCEVs outperform the average Class A truck on fuel economy and avoidance of tailpipe emissions.

Speaker Change: We estimate the average MPG diesel equivalent of our FCEV is 8.0, or 23% better than the Class 8 fuel economy average of 6.5 MPG equivalent per the DOE.

Stephen Girsky: The increased payload capacity per mile was significantly reduced refueling time compared to the Bev, ultimately means increased truck uptime for N-fleet users. As we deploy more highly refueling stations, we expect the in-service range to increase. Likewise, if you're a first mile logistics operator, the Bev 2.0 may be the right truck for you. Early field data collected so far tells us that the average trip distance between charging is 130 miles. If your running loads from the port to the warehouse and charging is available at the depot, then the Bev 2.0 will fit your needs. Again, we're on the field collecting data and learning how our trucks are being deployed. We're here to help our N-fleets optimize their trucks so they perform the way they are built to.

Stephen Girsky: Moreover, in-service FCEVs have consumed over 77 metric tons of hydrogen dispensed at various Nikola fueling solutions. In total, we estimate our FCEV and fleet operations have avoided approximately 867 metric tons of CO2 tailpipe emissions. With our Enfleet partners, Nikola is decarbonizing Class A trucking now. Moving to chart seven.

Speaker Change: Moreover, in-service FCEVs have consumed over 77 metric tons of hydrogen dispensed at various Nikola fueling solutions.

Speaker Change: In total, we estimate our FCEV and fleet operations have avoided approximately 867 metric tons of CO2 tailpipe emissions.

Steve Girsky: With our N-fleet partners, Nikola is decarbonizing Class A trucking now.

Speaker Change: With our Enfleet partners, Nikola is decarbonizing Class A trucking now.

Stephen Girsky: We're also executing on the HILA front, our energy supply and infrastructure solutions brand. As a strategy, we are launching stations and deploying assets where we anticipate demand. It is our objective to stay ahead of the FCEV deployment so that fueling solutions are ready and available for infleet. To that end, since our Q1 earnings call, we opened a Hyla branded station in Toronto, Canada, and completed commissioning a modular station in Santa Fe Springs in Southern California.

Steve Girsky: Moving to charge seven, we're also executing on the highlight front our energy supply and infrastructure solutions brand. As a strategy, we're launching stations and deploying assets where we anticipate demand. It is our objective to stay ahead of the FCEV deployment so that fueling solutions are ready and available for N-fleets. To that end, since Q1 earnings call, we opened a highly branded station in Toronto, Canada, and completed commissioning a modular station in Santa Fe Springs and Southern California. Toronto helps open Nikola fleet users to the eastern Canadian market where population density and busy freight corridors such as Highways 401, 427 and the QEW make it a natural fit for FCEVs.

Speaker Change: Moving to chart 7.

Speaker Change: We're also executing on the HILA front, our Energy Supply and Infrastructure Solutions brand.

Speaker Change: As a strategy, we are launching stations and deploying assets where we anticipate demand. It is our objective to stay ahead of the FCEV deployment so that fueling solutions are ready and available for end fleets.

Stephen Girsky: Lastly, we often get questions about comparing our fuel cell electric vehicle to a traditional diesel truck. On a converted basis, our FCEVs outperform the average class a truck on fuel economy and avoidance of tailpipe emissions. We estimate the average miles per gallon diesel equivalent of our FCEV is 8.0 or 23 percent better than the class a fuel economy average of 6.5 miles per diesel gallon equivalent per the DOE. Moreover, in-service FCEVs have consumed over 77 metric tons of hydrogen dispensed at various Nikola fueling solutions. In total, we estimate our FCEV N-fleet operations have avoided approximately 867 metric tons of CO2 tailpipe emissions. With our N-fleet partners, Nikola is decarbonizing class a trucking now.

Speaker Change: To that end, since Q1 earnings call, we opened a HILA-branded station in Toronto, Canada, and completed commissioning a modular station in Santa Fe Springs in Southern California.

Stephen Girsky: Toronto helps open Nikola fleet users to the Eastern Canadian market, where population density and busy freight corridors such as highways 401, 427, and the QEW make it a natural fit for FCEVs. It is also the headquarters of ITD, our full-service Canadian dealer network, which is well-equipped to provide skilled service and maintenance to end fleets such as Walmart Canada.

Speaker Change: Toronto helps open Nikola fleet users to the eastern Canadian market where population density and busy freight corridors such as highways 401, 427, and the QEW make it a natural fit for FCEVs.

Steve Girsky: It is also the headquarters of ITD, our full-service Canadian dealer network, which is well equipped to provide skilled service and maintenance to end fleets such as Walmart Canada. Santa Fe Springs helps support the growing density and hydrogen demand in Southern California. This is the second fueling station on a dealer's site, which shows strong collaboration between Nikola and our dealers. Santa Fe Springs is also the midpoint between Ontario and the Port of LA, along the busy 605 freight corridor. This newest highlight station is scheduled to be open for business operations on August 12, 2024. We added another modular fueler at our High Line Ontario station, doubling capacity, which effectively adds another station in that area.

Speaker Change: It is also the headquarters of ITD, our full-service Canadian dealer network, which is well equipped to provide skilled service and maintenance to end fleets such as Walmart Canada.

Stephen Girsky: Santa Fe Springs helps support the growing density and hydrogen demand in Southern California. This is the second fueling station on a dealer site, which shows strong collaboration between Nikola and our dealers. Santa Fe Springs is also the midpoint between Ontario and the Port of LA along the busy 605 Freight Corridor.

Speaker Change: Santa Fe Springs helps support the growing density and hydrogen demand in Southern California. This is the second fueling station on a dealer site which shows strong collaboration between Nikola and our dealers.

Stephen Girsky: Moving to charge seven, we're also executing on the highlight front our energy supply and infrastructure solutions brand. As a strategy, we're launching stations and deploying assets where we anticipate demand. It is our objective to stay ahead of the FCEV deployment so that fueling solutions are ready and available for N-fleets. To that end, since Q1 earnings call, we opened a highly branded station in Toronto Canada and completed commissioning a modular station in Santa Fe Springs and Southern California.

Speaker Change: Santa Fe Springs is also the midpoint between Ontario and the Port of LA along the busy 605 freight corridor.

Stephen Girsky: This newest HILUS station is scheduled to be open for business operations on August 12, 2024. We added another modular fueler at our Hilo, Ontario, station, doubling capacity, which effectively adds another station in that area. We recently had a record day in Ontario with 28 FCEVs refueled and more than 850 kilograms of hydrogen dispensed in one day. Again, our modular strategy allows us to stay nimble and pivot to support the demands of our end-farmers.

Speaker Change: This newest HILUS station is scheduled to be open for business operations on August 12, 2024.

Speaker Change: We added another modular fueler at our Highlaw, Ontario station, doubling capacity, which effectively adds another station in that area.

Steve Girsky: We recently had a record day at Ontario with 28 FCEVs refueled and more than 850 kilograms of hydrogen dispensed in one day. Again, our modular strategy allows us to stay nimble and pivot to support the demands of our end fleets. Lastly, through our work with Shell, our fleet customers have been able to fuel at Shell's heavy duty station in Ontario, California. Ontario and the surrounding area near the port of Los Angeles and the port of Long Beach have proven to be critical refueling areas that are amassing density quickly. Our FY24 HILA guidance remains unchanged. We remain on track to provide 14 fueling solutions in North America by year end.

Speaker Change: We recently had a record day in Ontario with 28 FCEVs refueled and more than 850 kilograms of hydrogen dispensed in one day. Again, our modular strategy allows us to stay nimble and pivot to support the demands of our end fleets.

Stephen Girsky: Toronto helps open Nikola fleet users to the eastern Canadian market where population density and busy freight corridors such as highways 401, 427 and the QEW make it a natural fit for FCEVs. It is also the headquarters of ITD, our full service Canadian dealer network, which is well equipped to provide skilled service and maintenance to end fleets such as Walmart Canada. Santa Fe Springs helps support the growing density and hydrogen demand in Southern California.

Stephen Girsky: Lastly, through our work with Shell, our fleet customers have been able to fuel at Shell's heavy-duty station in Ontario, California. Ontario and the surrounding area near the Port of Los Angeles and the Port of Long Beach have proven to be critical refueling areas that are amassing density quickly. Our FY 24 HILA guidance remains unchanged.

Speaker Change: Lastly, through our work with Shell, our fleet customers have been able to fuel at Shell's heavy-duty station in Ontario, California. Ontario and the surrounding area near the Port of Los Angeles and the Port of Long Beach have proven to be critical refueling areas that are amassing density quickly.

Stephen Girsky: We remain on track to provide 14 fueling solutions in North America by year end. Now that we've passed the midway point of our HILA hydrogen highway plan, and we've been operational on chart nine, we wanted to provide some data on our ramp up. At our Coolidge facility, since we began tracking fueling data on February 1st, we have completed over 1,300 fueling events and dispensed over 40 metric tons of hydrogen through July monthend. Coolidge is where we perform the first fills for trucks that come off the manufacturing line and refuel trucks that are part of our testing and demo fleet.

Speaker Change: Our FY24 HILA guidance remains unchanged. We remain on track to provide 14 fueling solutions in North America by year end.

Stephen Girsky: This is the second fueling station on a dealer's site, which shows strong collaboration between Nikola and our dealers. Santa Fe Springs is also the midpoint between Ontario and the port of LA, along the Busy 605 Freight corridor. This newest highlight station is scheduled to be open for business operations on August 12, 2024. We added another modular fueler at our High Line Ontario station, Doubling Capacity, which effectively adds another station in that area.

Steve Girsky: Now that we've passed the midway point of our HILA hydrogen highway plan, and we've been operational, on chart 9 we've wanted to provide some data on our ramp up. At our Coolidge facility, since we began tracking fueling data on February 1, we have completed over 1,300 fueling events and dispensed over 40 metric tons of hydrogen through July month-end. Coolidge is where we perform first fills for trucks that come off the manufacturing line and refuel trucks that are part of our testing and demo fleets. We also fuel fleets that have roots into Southern California and return to Coolidge.

Speaker Change: Now that we've passed the midway point of our Hyla Hydrogen Highway Plan and we've been operational, on chart 9 we wanted to provide some data on our ramp-up.

Speaker Change: At our Coolidge facility, since we began tracking fueling date on February 1st, we have completed over 1,300 fueling events and dispensed over 40 metric tons of hydrogen through July month end.

Speaker Change: Coolidge is where we perform first fills for trucks that come off the manufacturing line and refuel trucks that are part of our testing and demo fleets.

Stephen Girsky: We recently had a record day at Ontario with 28 FCEVs refueled and more than 850 kilograms of hydrogen dispensed in one day. Again, our modular strategy allows us to stay nimble and pivot to support the demands of our end fleets. Lastly, through our work with Shell, our fleet customers have been able to fuel its Shell's heavy duty station in Ontario, California. Ontario and the surrounding area near the port of Los Angeles and the port of Long Beach have proven to be critical refueling areas that are amassing density quickly. Our FY24 HILA guidance remains unchanged. We remain on track to provide 14 fueling solutions in North America by year end.

Stephen Girsky: We also fuel fleets that have routes into Southern California and return to Coolidge. At our Ontario station, where HILA began fueling events on December 14, 2023, we have completed over 1100 fueling events and dispensed over 45 metric tons of hydrogen. Another important metric is the volume dispensed per fill.

Speaker Change: We also fuel fleets that have routes into Southern California and return to Coolidge.

Steve Girsky: At our Ontario station, where HILA began fueling events on December 14, 2023, we have completed over 1,100 fueling events and dispensed over 45 metric tons of hydrogen. Another important metric is the volume dispensed per fill. On average, each fill was 41 kilograms, which means that our customers are driving roots out of Ontario that are roughly 300 miles. Our Long Beach station, which just launched in early May, shows strong ramp-up data, having just over 700 fills in three months. Long Beach has dispensed 27 metric tons of hydrogen so far, with an average fill of 38 kilograms. The key message here is that Nikola FCEVs are on the road and refueling with consistent frequency and significant volume at HILA fueling solutions.

Speaker Change: At our Ontario station, where HILA began fueling events on December 14, 2023, we have completed over 1,100 fueling events and dispensed over 45 metric tons of hydrogen.

Stephen Girsky: On average, each fill was 41 kilograms, which means that our customers are driving routes out of Ontario that are roughly 300 miles long. A Long Beach station, which just launched in early May, shows strong ramp-up data, having just over 700 fills in three months. Long Beach has dispensed 27 metric tons of hydrogen so far, with an average fill of 38 kilograms. The key message here is that Nikola FCEVs are on the road and refueling with consistent frequency and significant volume at Hyla Fueling Solutions. Nikola is the offtaker and the catalyst for the hydrogen economy in North America. Moving on to regulatory tailwinds on chart 10. We continue to maintain our dominant share of HVIP vouchers in California.

Speaker Change: Another important metric is the volume dispensed per fill. On average, each fill was 41 kilograms, which means that our customers are driving routes out of Ontario that are roughly 300 miles.

Speaker Change: A Long Beach station, which just launched in early May, shows strong ramp-up data, having just over 700 fills in three months.

Stephen Girsky: Now that we've passed the midway point of our HILA hydrogen highway plan, and we've been operational, on chart 9 we've wanted to provide some data on our ramp up. At our Coolidge facility, since we began tracking fueling data on February 1, we have completed over 1,300 fueling events and dispensed over 40 metric tons of hydrogen through July month end. Coolidge is where we perform first fills for trucks that come off the manufacturing line and refuel trucks that are part of our testing and demo fleets.

Speaker Change: Long Beach has dispensed 27 metric tons of hydrogen so far, with an average fill of 38 kilograms.

Speaker Change: The key message here is that Nikola FCEVs are on the road and refueling with consistent frequency and significant volume at Hyla fueling solutions.

Steve Girsky: Nikola is the off-take and the catalyst for the hydrogen economy in North America.

Speaker Change: Nikola is the offtake and the catalyst for the hydrogen economy in North America.

Steve Girsky: Moving on to regulatory tailwinds on chart 10, we continue to maintain our dominant share of the HVIP vouchers in California. At quarter end, we had 99% share of the fuel sale vouchers and 23% share of the battery vouchers. We added a net of 11 fuel cell vouchers despite double-digit redemptions, demonstrating continued strong demand in California.

Speaker Change: Moving on to regulatory tailwinds on chart 10.

Stephen Girsky: We also fuel fleets that have roots into Southern California and return to Coolidge. At our Ontario station, where HILA began fueling events on December 14, 2023, we have completed over 1,100 fueling events and dispensed over 45 metric tons of hydrogen. Another important metric is the volume dispensed per fill. On average, each fill was 41 kilograms, which means that our customers are driving roots out of Ontario that are roughly 300 miles. Our Long Beach station, which just launched an early May, shows strong ramp up data having just over 700 fills in three months.

Speaker Change: We continue to maintain our dominant share of HVIP vouchers in California.

Stephen Girsky: At quarter end, we had a 99% share of the fuel cell vouchers and a 23% share of the battery vouchers. We added a net of 11 fuel cell vouchers despite double-digit redemptions demonstrating continued strong demand in California. Next, we're creating alternative revenue and profit streams from the sale of regulatory credits. We expect the first sale of Knox and PM credits in Q2.

Speaker Change: At quarter end, we had 99% share of the fuel cell vouchers and 23% share of the battery vouchers.

Speaker Change: We added a net of 11 fuel cell vouchers despite double-digit redemptions, demonstrating continued strong demand in California.

Steve Girsky: Next, we're creating alternative revenue and profit streams from the sale of regulatory credits. We recognize the first sale of NOx and PM credits in Q2.

Speaker Change: Next, we're creating alternative revenue and profit streams from the sale of regulatory credits.

Speaker Change: We recognize the first sale of NOX and PM credits in Q2.

Stephen Girsky: EPA Clean Ports is another bright spot in green policy. Nikola has been named in eight CleanPort project applications across the US for joint funding. Strategic ports include western, eastern, and gulf regions.

Steve Girsky: EPA Clingports is another bright spot in green policies. Nikola has been named in eight Clingport project applications across the U.S. for joint funding. Strategic ports include western, eastern, and Gulf regions. Together with fleet partners, Nikola is to provide FCEVs and VEVs as eligible zero-emission vehicle port equipment and/or high-level fueling as eligible clean energy infrastructure.

Speaker Change: EPA Clean Ports is another bright spot in green policies.

Speaker Change: Nikola has been named in eight CleanPort project applications across the U.S. for joint funding.

Stephen Girsky: Long Beach has dispensed 27 metric tons of hydrogen so far with an average fill of 38 kilograms. The key message here is that Nikola FCEVs are on the road and refueling with consistent frequency and significant volume at HILA fueling solutions.

Speaker Change: Strategic ports include western, eastern, and gulf regions.

Stephen Girsky: Together with fleet partners, Nikola is to provide FCEVs and BEVs as eligible zero-emission vehicle port equipment and or HILA fueling as eligible clean energy infrastructure. Project selections are expected to be announced by the EPA in September. Lastly, and perhaps the strongest tailwind of all, is at Arches. The California-based Western Regional Hydrogen Hub is the first of seven regional hubs to officially sign the agreement with the Department of Energy. A total of $12.6 billion will be available to support projects and to build and expand clean hydrogen infrastructure in California. $1.2 billion will be funded by the DOE, and the rest from public and private matching funds.

Speaker Change: Together with fleet partners, Nikola is to provide FCEVs and BEVs as eligible zero-emission vehicle port equipment and or HILA fueling as eligible clean energy infrastructure.

Steve Girsky: Project selections are expected to be announced by the EPA in September.

Stephen Girsky: Nikola is the off-take and the catalyst for the hydrogen economy in North America. Moving on to regulatory tailwinds on chart 10, we continue to maintain our dominant share of the HVIP vouchers in California. At quarter end, we had 99% share of the fuel sale vouchers and 23% share of the battery vouchers. We added a net of 11 fuel cell vouchers despite double-digit redemptions demonstrating continued strong demand in California. Next, we're creating alternative revenue and profit streams from the sale of regulatory credits.

Speaker Change: Project selections are expected to be announced by the EPA in September.

Steve Girsky: Lastly, and perhaps the strongest tailwind of all, is at Arches. The California-based Western Regional Hydrogen Hub is the first of seven regional hubs to officially sign an agreement with the Department of Energy. A total of $12.6 billion will be available to support projects and to build and expand clean hydrogen infrastructure in California. $1.2 billion will be funded from the DOE, and the rest from public and private matching funds. We're excited to hear that $30 million, the first TronTrap funding, will be deployed shortly, as it's a positive and encouraging sign that the hydrogen economy is growing.

Speaker Change: Lastly, and perhaps the strongest tailwind of all, is at Arches, the California-based Western Regional Hydrogen Hub is the first of seven regional hubs to officially sign the agreement with the Department of Energy.

Speaker Change: A total of $12.6 billion will be available to support projects and to build and expand clean hydrogen infrastructure in California.

Speaker Change: $1.2 billion will be funded from the DOE and the rest from public and private matching funds.

Stephen Girsky: We're excited to hear that $30 million, the first tranche of funding, will be deployed shortly, as it's a positive and encouraging sign that the hydrogen economy is growing. Nikola is well poised to partner with Arches and the DOE for hydrogen station deployment and is named as a network partner. Our HILA mobile refueling stations offer compelling evidence that heavy-duty offtake is significant and growing. To give an example of the size of the offtake that exists with Nikola trucks now, consider that the average fuel consumption for a typical fuel cell passenger car in the U.S. is 0.6 kilograms per day based on annual mileage. Artrux Fuel on average, 35kg per fill [inaudible] One Nikola truck is close to 60 fuel cell passenger cars.

Speaker Change: We're excited to hear that $30 million, the first tranche of funding, will be deployed shortly as it's a positive and encouraging sign that the hydrogen economy is growing.

Stephen Girsky: We recognize the first sale of NOx and PM credits in Q2. EPA Clingports is another bright spot in green policies. Nikola has been named in eight Clingport project applications across the U.S, for joint funding. Strategic ports include Western, Eastern, and Gulf regions. Together with fleet partners, Nikola is to provide FCEVs and VEVs as eligible zero-emission vehicle port equipment and or high-level fueling as eligible clean energy infrastructure. Project selections are expected to be announced by the EPA in September.

Steve Girsky: Nikola is well-poised to partner with Arches and the DOE for hydrogen station deployment and is named as a network partner.

Speaker Change: Nikola is well poised to partner with Arches and the DOE for hydrogen station deployment and is named as a network partner.

Steve Girsky: Our high-level mobile refueling stations offer compelling evidence that heavy-duty offtake is significant and growing. To give an example of the size of the offtake that exists with Nikola trucks now, consider that the average fuel consumption for a typical fuel cell passenger car in the U.S. 0.6 kilograms per day based on annual mileage. Our trucks fuel on average 35 kilograms per fill. One Nikola truck is close to 60 fuel cell passenger cars. There are over 18,000 fuel cell passenger cars in the U.S. and growing. That's equivalent to 300 Nikola Fuel Cell Electric Vehicles.

Speaker Change: Our HILA mobile refueling stations offer compelling evidence that heavy-duty offtake is significant and growing.

Speaker Change: To give you an example of the size of the offtake that exists with Nikola trucks now, consider that the average fuel consumption for a typical fuel cell passenger car in the U.S. is 0.6 kilograms per day based on annual mileage.

Stephen Girsky: Lastly, and perhaps the strongest tailwind of all is at Arches, the California-based Western Regional Hydrogen Hub is the first of seven regional hubs to officially sign agreement with the Department of Energy. A total of $12.6 billion will be available to support projects and to build and expand clean hydrogen infrastructure in California. $1.2 billion will be funded from the DOE and the rest from public and private matching funds. We're excited to hear that $30 million, the first trontrap funding will be deployed shortly as it's a positive and encouraging sign that the hydrogen economy is growing.

Speaker Change: Our trucks fuel on average 35 kilograms per fill.

Speaker Change: One Nikola truck is close to 60 fuel cell passenger cars.

Stephen Girsky: There are over 18,000 fuel cell passenger cars in the U.S. and growing, so that's equivalent to 300 Nikola fuel cell electric vehicles. By the end of 24, we will have doubled the hydrogen offtake for transportation in the market with just our in service trucks alone. In short, we provide density and scale for the hydrogen ecosystem. Before handing it over to Tom, I want to circle back to the Purpose Driven Coalition. Building a zero emission ecosystem piece by piece takes enormous time and resources. We cannot do it alone.

Speaker Change: There are over 18,000 fuel cell passenger cars in the U.S. and growing. That's equivalent to 300 Nikola fuel cell electric vehicles. By the end of 24 we will have doubled the hydrogen offtake for transportation in the market with just our in-service trucks alone.

Steve Girsky: By the end of 24, we will have doubled the hydrogen offtake for transportation in the market with just our in-service trucks alone. In short, we provide density and scale for the hydrogen ecosystem.

Speaker Change: In short, we provide density and scale for the hydrogen ecosystem.

Steve Girsky: Before handing it over to Tom, I want to circle back to the purpose-driven coalition. Building a zero-mission ecosystem piece by piece takes enormous time and resources. We cannot do it alone. We've been walking the talk with our class eight zero-mission trucks in hydrogen refueling stations. We have 147 fuel cell electric vehicles wholesale through the end of Q2 and roughly 115 metric tons of hydrogen dispensed. We're all in, and there's no turning back. Two trucks, one platform, all zero emissions. This is all we do. I, along with our thousand plus employees, come to work every day with the singular focus to ensure Nikola not only survives but thrives.

Speaker Change: Before handing it over to Tom, I want to circle back to the Purpose Driven Coalition.

Stephen Girsky: Nikola is well-poised to partner with Arches and the DOE for hydrogen station deployment and is named as a network partner. Our high-level mobile refueling stations offer compelling evidence that heavy-duty offtake is significant and growing. To give an example of the size of the offtake that exists with Nikola trucks now, consider that the average fuel consumption for a typical fuel cell passenger car in the U.S, is 0.6 kilograms per day based on annual mileage.

Speaker Change: Building a zero-emission ecosystem piece-by-piece takes enormous time and resources. We cannot do it alone.

Stephen Girsky: We've been walking the talk with our Class 8 Zero Mission Trucks and hydrogen refueling stations. We have 147 fuel cell electric vehicles wholesale through the end of Q2 and roughly 115 metric tons of hydrogen dispensed. We're all in. And there's no turning back. Two trucks, one platform, all zero emissions. This is all we do.

Tom Okray: We've been walking the talk with our Class 8 Zero Mission Trucks and Hydrogen Refueling Stations.

Tom Okray: We have 147 fuel cell electric vehicles wholesale through the end of Q2 and roughly 115 metric tons of hydrogen dispensed.

Tom Okray: We're all in and there's no turning back. Two trucks, one platform, all zero emissions. This is all we do.

Stephen Girsky: I, along with our thousand plus employees, come to work every day with the singular focus to ensure Nikola not only survives, but thrives. We are attracting prospective partners such as large logos and fleets, big energy, hydrogen producers, and automotive OEMs who recognize the need for a zero emission world. Seeing is believing.

Stephen Girsky: Our trucks fuel on average 35 kilograms per fill. One Nikola truck is close to 60 fuel cell passenger cars. There are over 18,000 fuel cell passenger cars in the U.S, and growing. That's equivalent to 300 Nikola fuel cell electric vehicles. By the end of 24, we will have doubled the hydrogen offtake for transportation in the market with just our in-service trucks alone. In short, we provide density and scale for the hydrogen ecosystem.

Tom Okray: I, along with our 1,000 plus employees, come to work every day with a singular focus to ensure Nikola not only survives, but thrives.

Steve Girsky: We are attracting prospective partners such as large logo and fleets, big energy, hydrogen producers, and automotive OEMs who recognize the need for a zero-mission world. Seeing as believing, the more fuel cells we deliver, the more light-minded partners want to work with us. These include national fleet partners who have stated corporate-wide decarbonization goals for the next decade. Demos are ongoing with large logos in the U.S. and Canada, big energy, or traditional industrial gas companies who recognize the potential for significant hydrogen off-take and the need for fixed stations to accelerate large-scale adoption. Hydrogen producers who view hydrogen as a growth vector and want to play a critical role in supporting this energy transition.

Speaker Change: We are attracting prospective partners such as large logo and fleets, big energy, hydrogen producers, and automotive OEMs who recognize the need for a zero-emission world.

Stephen Girsky: The more fuel cells we deliver, the more like-minded partners want to work with us. These include national fleet partners who have stated corporate-wide decarbonization goals for the next decade. Demonstrations are ongoing with large logos in the US and Canada by Big Energy, or traditional industrial gas companies who recognize the potential for significant hydrogen off-take and the need for fixed stations to accelerate large-scale adoption. Hydrogen producers who view hydrogen as a growth vector and want to play a critical role in supporting this energy transition.

Speaker Change: Seeing is believing. The more fuel cells we deliver, the more like-minded partners want to work with us. These include national fleet partners who have stated corporate-wide decarbonization goals for the next decade. Demos are ongoing with large logos in the U.S. and Canada.

Stephen Girsky: Before handing it over to Tom, I want to circle back to the purpose driven coalition. Building a zero-mission ecosystem piece by piece takes enormous time and resources. We cannot do it alone. We've been walking the talk with our class eight zero-mission trucks in hydrogen refueling stations. We have 147 fuel cell electric vehicles wholesale through the end of Q2 and roughly 115 metric tons of hydrogen dispensed. We're all in and there's no turning back.

Speaker Change: Big Energy, or traditional industrial gas companies who recognize the potential for significant hydrogen offtake and the need for fixed stations to accelerate large-scale adoption.

Speaker Change: Hydrogen producers who view hydrogen as a growth vector and want to play a critical role in supporting this energy transition.

Steve Girsky: Automotive OEMs who are eager to find synergies across product development, sourcing, and hydrogen infrastructure to not only support the light-duty market, but also penetrate the Class-Aid heavy-duty market.

Stephen Girsky: Automotive OEMs are eager to find synergies across product development, sourcing, and hydrogen infrastructure to not only support the light duty market but also penetrate the class eight heavy duty market. Now, I'll pass it to Tom to cover the financial results.

Speaker Change: Automotive OEMs who are eager to find synergies across product development, sourcing and hydrogen infrastructure to not only support the light duty market, but also penetrate the class eight heavy duty market.

Stephen Girsky: Two trucks, one platform, all zero emissions. This is all we do. I along with our thousand plus employees come to work every day with the singular focus to ensure Nikola not only survives but thrives. We are attracting prospective partners such as large logo and fleets, big energy, hydrogen producers, and automotive OEMs who recognize the need for a zero-mission world. Seeing as believing, the more fuel cells we deliver, the more light-minded partners want to work with us.

Tom Okray: Now I'll pass it to Tom to cover the financial results. Thanks, Steve. Moving to chart 12, we introduced the Nikola profitability flywheel last quarter. We talked about the importance of national accounts to build meaningful volume to scale our operations. Rolling a significant and consistent order book enables us to optimize costs both internally and with our external partners. The fly-wheel is gaining momentum. As Steve mentioned earlier, we're beginning to demonstrate national interests with initial orders from Walmart, Canada, and other large fleets. With demos and discussions in process, many of these orders are important because they are the first order for hydrogen fuel cell trucks for their respective fleets.

Speaker Change: Now I'll pass it to Tom to cover the financial results.

Thomas Okray: Thanks, Steve. Moving to chart 12. We introduced the Nikola profitability flywheel last quarter. We talked about the importance of national accounts to build meaningful volume to scale our operation. Growing a significant and consistent order book enables us to optimize costs both internally and with our external partners. The flywheel is gaining momentum.

Tom Okray: Thanks, Steve. Moving to chart 12. We introduced the Nikola profitability flywheel last quarter. We talked about the importance of national accounts to build meaningful volume to scale our operations.

Stephen Girsky: These include national fleet partners who have stated corporate-wide decarbonization goals for the next decade. Demos are ongoing with large logos in the U.S, and Canada, big energy, or traditional industrial gas companies who recognize the potential for significant hydrogen off-take and the need for fixed stations to accelerate large-scale adoption. Hydrogen producers who view hydrogen as a growth vector and want to play a critical role in supporting this energy transition. Automotive OEMs who are eager to find synergies across product development, sourcing, and hydrogen infrastructure to not only support the light-duty market, but also penetrate the class-aid heavy-duty market.

Speaker Change: Growing a significant and consistent order book enables us to optimize costs both internally and with our external partners.

Thomas Okray: As Steve mentioned earlier, we're beginning to demonstrate national interest with initial orders from Walmart Canada and other large fleets, with demos and discussions in the process. Many of these orders are important because they are the first orders for hydrogen fuel cell trucks for their respective fleets. They are testing the new technology and demonstrating that they are committed to growing with us.

Speaker Change: The flywheel is gaining momentum. As Steve mentioned earlier, we're beginning to demonstrate national interest with initial orders from Walmart Canada and other large fleets, with demos and discussions in process.

Speaker Change: Many of these orders are important because they are the first order for hydrogen fuel cell trucks for their respective fleets. They are testing the new technology and demonstrating that they are committed to growing with us.

Tom Okray: They're testing the new technology and demonstrating that they're committed to growing with us.

Tom Okray: Chart 13 contains our financial highlights.

Thomas Okray: Chart 13 contains our financial highlights. Regarding the top line, in Q2, we posted the strongest revenue quarter in the history of Nikola. Total revenue was $31.3 million, up 318% from Q1. Revenue growth was impacted by higher wholesale deliveries, service, and other costs and a stronger average sales price. The average sales price improved sequentially by $7,000 per unit to $388,000 from $381,000 in Q1. This is the third consecutive quarter of higher ASP for our fuel cell trucks.

Tom Okray: Regarding the top line, in Q2, we posted the strongest revenue quarter in the history of Nikola. Total revenue was $31.3 million, up 318% from Q1. Revenue growth was impacted by higher wholesale deliveries, service, and other, and stronger average sales price. The average sales price improves sequentially by $7,000 per unit to $388,000 from $381,000 in Q1. This is the third consecutive quarter of stronger ASP for our fuel cell trucks.

Speaker Change: Chart 13 contains our financial highlights.

Speaker Change: Regarding the top line, in Q2, we posted the strongest revenue quarter in the history of NICOLAT.

Thomas Okray: Now I'll pass it to Tom to cover the financial results. Thanks, Steve. Moving to chart 12, we introduced the Nikola profitability fly-wheel last quarter. We talked about the importance of national accounts to build meaningful volume to scale our operations. Rolling a significant and consistent order book enables us to optimize costs both internally and with our external partners. The fly-wheel is gaining momentum. As Steve mentioned earlier, we're beginning to demonstrate national interests with initial orders from Walmart, Canada, and other large fleets.

Speaker Change: Total revenue was $31.3 million, up 318% from Q1. Revenue growth was impacted by higher wholesale deliveries, service and other, and stronger average sales price.

Speaker Change: The average sales price improves sequentially by $7,000 per unit to $388,000 from $381,000 in Q1. This is the third consecutive quarter of stronger ASP for our fuel cell trucks.

Tom Okray: For the second quarter, we reported a gross loss of $54.7 million compared to a gross loss of $57.6 million in Q1. Stronger revenue driven by increased volume and higher ASP were partially offset by higher costs related to the higher volume.

Thomas Okray: For the second quarter, we reported a gross loss of $54.7 million compared to a gross loss of $57.6 million in Q1. Higher revenue driven by increased volume and higher ASP were partially offset by higher costs related to the higher volume. With respect to cash, our unrestricted cash declined $89.3 million in the quarter. Therefore, we ended the quarter with $256.3 million in unrestricted cash. Larger disbursements to suppliers as we scaled volume and an additional payroll period were partially offset by higher receipts.

Speaker Change: For the second quarter, we reported a gross loss of $54.7 million, compared to a gross loss of $57.6 million in Q1.

Thomas Okray: With demos and discussions in process, many of these orders are important because they are the first order for hydrogen fuel cell trucks for their respective fleets. They're testing the new technology and demonstrating that they're committed to growing with us.

Speaker Change: Stronger revenue driven by increased volume and higher ASP were partially offset by higher costs related to the higher volume.

Tom Okray: With respect to cash, our unrestricted cash declined $89.3 million in the quarter. Therefore, we ended the quarter with $256.3 million in unrestricted cash. Larger disbursements to suppliers as we scale volume, William, and an additional payroll period were partially offset by higher receipts due to higher volume and ATM proceeds of $52.2 million.

Speaker Change: With respect to cash, our unrestricted cash declined $89.3 million in the quarter. Therefore, we ended the quarter with $256.3 million in unrestricted cash.

Thomas Okray: Chart 13 contains our financial highlights. Regarding the top line, in Q2, we posted the strongest revenue quarter in the history of Nikola. Total revenue was $31.3 million, up 318% from Q1. Revenue growth was impacted by higher wholesale deliveries, service, and other, and stronger average sales price. The average sales price improves sequentially by $7,000 per unit to $388,000 from 381,000 and Q1. This is the third consecutive quarter of stronger ASP for our fuel cell trucks.

Speaker Change: Larger disbursements to suppliers as we scale volume and an additional payroll period were partially offset by higher receipts due to higher volume and ATM proceeds of 52.2 million dollars.

Thomas Okray: Due to higher volume and ATM proceeds of $52.2 million. Moving on to chart 14, for fiscal year 2024, our fuel cell wholesale delivery guidance remains unchanged at 300 to 350 fuel cell trucks, with Q3 being between 80 and 100 wholesale delivery. We are continuing to execute our plan in the third quarter of 2024, including ensuring that we have the capital required so that the business can scale and become profitable. Now, back to Steve for closing remarks. Thanks, Tom. I recently traveled on a world tour that started in China, then proceeded to Japan, Paris, and ended in London.

Tom Okray: Moving on to chart 14, for fiscal year 2024, our fuel cell wholesale delivery guidance remains unchanged at 300 to 350 fuel cell trucks, with Q3 being between 80 and 100 wholesale deliveries.

Speaker Change: Moving on to chart 14, for fiscal year 2024, our fuel cell wholesale delivery guidance remains unchanged at 300 to 350 fuel cell trucks, with Q3 being between 80 and 100 wholesale deliveries.

Thomas Okray: For the second quarter, we reported a gross loss of $54.7 million compared to a gross loss of $57.6 million in Q1. Stronger revenue driven by increased volume and higher ASP were partially offset by higher costs related to the higher volume. With respect to cash, our unrestricted cash declined $89.3 million in the quarter. Therefore, we ended the quarter with $256.3 million in unrestricted cash. Larger disbursements to suppliers as we scale volume William, and an additional payroll period were partially offset by higher receipts due to higher volume and ATM proceeds of $52.2 million.

Tom Okray: We are continuing to execute our plan in the third quarter of 2024, including ensuring that we have the capital required so that the business can scale and become profitable.

Speaker Change: We are continuing to execute our plan in the third quarter of 2024, including ensuring that we have the capital required so that the business can scale and become profitable. Back to Steve for closing remarks.

Steve Girsky: Back to Steve for closing remarks.

Steve Girsky: Thanks, Tom.

Steve Girsky: I recently traveled on a world tour that started in China, then proceeded to Japan, Paris, and ended in London. The hydrogen ecosystem, while nascent in North America, is on solid footing globally. Substantial investments are being made in Asia, Europe, and the Middle East. My team and I met with prospective strategic partners and investors who recognized the opportunity at hand and the role Nikola can play in unlocking the hydrogen economy here.

Stephen Girsky: I recently traveled on a world tour that started in China, then proceeded to Japan, Paris, and ended in London. The hydrogen ecosystem, while nascent in North America, is on solid footing globally. Substantial investments are being made in Asia, Europe, and the Middle East. My team and I met with prospective strategic partners and investors who recognize the opportunity at hand and the role Nikola can play in unlocking the hydrogen economy here. The Purpose Driven Coalition is growing, and Nikola is key to prove to the world that zero emissions and the hydrogen economy are real. This concludes our prepared remarks. I'll now hand the call back to Zoe for shareholder questions.

Speaker Change: Thanks, Tom. I recently traveled on a world tour. It started in China, then proceeded to Japan, Paris, and ended in London.

Speaker Change: The hydrogen ecosystem, while nascent in North America, is on solid footing globally.

Speaker Change: Substantial investments are being made in Asia, Europe, and the Middle East.

Speaker Change: My team and I met with prospective strategic partners and investors who recognize the opportunity at hand and the role Nikola can play in unlocking the hydrogen economy here.

Steve Girsky: The purpose-driven coalition is growing, and Nikola is key to prove to the world that zero emissions and the hydrogen economy is real.

Speaker Change: The purpose-driven coalition is growing, and Nikola is key to prove to the world that zero emissions and the hydrogen economy is real.

Thomas Okray: Moving on to chart 14, for fiscal year 2024, our fuel cell wholesale delivery guidance remains unchanged at 300 to 350 fuel cell trucks with Q3 being between 80 and 100 wholesale deliveries. We are continuing to execute our plan in the third quarter of 2024, including ensuring that we have the capital required so that the business can scale and become profitable.

Steve Girsky: This concludes our prepared remarks.

Soei Shin: I'll now hand the call back to Soei for stockholder questions. We are unable to hear you. So let me wait a while. I was on mute. We'll try that again. Thanks, Steve. You received questions from stockholders through the SA platform. First question.

Speaker Change: This concludes our prepared remarks. I'll now hand the call back to Zoe for stockholder questions.

Speaker Change: Dhillon Sandhu, Dhillon Sandhu, Thomas Okray,

Speaker Change: The New Year's Day,

Unknown Speaker: We are unable to hear you.

Stephen Girsky: Back to Steve for closing remarks. Thanks Tom.

Speaker Change: I am able to hear you.

Unknown Speaker: Sorry, it was on mute.

Stephen Girsky: I recently traveled on a world tour that started in China, then proceeded to Japan, Paris, and ended in London. The hydrogen ecosystem while nascent in North America is on solid footing globally. Substantial investments are being made in Asia, Europe, and the Middle East. My team and I met with prospective strategic partners and investors who recognized the opportunity at hand and the role Nikola can play in unlocking the hydrogen economy here. The purpose-driven coalition is growing, and Nikola is key to prove to the world that zero emissions and the hydrogen economy is real.

Speaker Change: Wait, sorry, it was on mute.

Zoe Shin: Thanks Steve, you received questions from stockholders through the FAYE platform. First question: What is the strategic plan to increase shareholder returns? What measures are being taken to enhance profitability?

Speaker Change: We'll try that again.

Speaker Change: Thanks Steve, you received questions from stockholders through the SAIT platform.

Tom Okray: What is the strategic plan to increase shareholder return? What measures are being taken to enhance profitability?

Speaker Change: First question, what is the strategic plan to increase shareholder returns? What measures are being taken to enhance profitability?

Thomas Okray: I'll take that one, Steve. No surprise, execution is key to improving Nikola's profitability and increasing shareholder returns. You know, here's what we know is true. The first thing is that Nikola is on the road today with customers and stations. Number two, we have numerous proof points with customers, some of which we just covered on the call. In addition to that, we're having ongoing discussions with numerous national accounts and other customers. Number three, Nikola is positioned ahead of competitor OEMs.

Tom Okray: I'll take that one, Steve. No surprise, executions, key to improving Nikola's profitability and increasing shareholder returns.

Speaker Change: I'll take that one, Steve. No surprise, execution is key to improving Nikola's profitability and increasing shareholder returns. You know, here's what we know is true. The first thing is Nikola is on the road today with customers and stations.

Tom Okray: Here's what we know is true. The first thing is Nikola is on the road today with customers and stations. Number two, we have numerous proof points with customers, some of which we just covered on the call. In addition to that, we were having ongoing discussions with numerous national accounts and other customers. Number three, Nikola has positioned ahead of competitor OEM. And number four, we've got a team that is really passionate about developing the hydrogen ecosystem. The profitability wheel is beginning to gain momentum, growing this significant and consistent order book.

Thomas Okray: And number four, we've got a team that is really passionate about developing the hydrogen ecosystem. The profitability wheel is beginning to gain momentum, growing this significant and consistent order book. I can't emphasize it enough. It is so important for us to optimize costs both internally and with our external partners. And we're demonstrating this interest with the national accounts, as we talked about in the prepared remarks. But we have to keep in mind, though, that accepting this new technology takes time and education. But bottom line, our high-touch sales team and the dealer network are making inroads with national accounts, with more demos and discussions in the process and more to come.

Unknown Executive: This concludes our prepared remarks.

Speaker Change: Number two, we have numerous proof points with customers, some of which we just covered on the call. In addition to that, we were having ongoing discussions with numerous national accounts and other other customers.

Soei Shin: I'll now hand the call back to Soei for stockholder questions. We are unable to hear you. So let me wait a while.

Speaker Change: Number three, Nikola is positioned ahead of competitor OEMs. And number four, we've got a team that is really passionate about developing the hydrogen ecosystem.

Speaker Change: The profitability wheel is beginning to gain momentum, growing this significant and consistent order book. I can't emphasize it enough.

Soei Shin: I was on mute. We'll try that again. Thanks Steve. You received questions from stockholders through the SA platform. First question.

Tom Okray: I can't emphasize it enough. It is so important for us to optimize costs both internally and with our external partners. And we're demonstrating this interest with the national accounts, as we talked about in the prepared remarks.

Speaker Change: It is so important for us to optimize costs both internally and with our external partners, and we're demonstrating this interest with the national accounts as we talked about in the prepared remarks.

Thomas Okray: What is the strategic plan to increase shareholder return? What measures are being taken to enhance profitability? I'll take that one, Steve. No surprise, executions, key to improving Nikola's profitability and increasing shareholder returns. Here's what we know is true. The first thing is Nikola is on the road today with customers and stations. Number two, we have numerous proof points with customers, some of which we just covered on the call. In addition to that, we were having ongoing discussions with numerous national accounts and other customers.

Tom Okray: We have to keep in mind, though, accepting this new technology takes time and education. But bottom line, our high-touch sales team and the dealer network are making inroads with the national accounts, with more demos and discussions in process and more to come.

Speaker Change: We have to keep in mind, though, accepting this new technology takes time and education. But bottom line, our high-touch sales team and the dealer network are making inroads with the national accounts with more demos and discussions in process and more to come.

Tom Okray: Thanks, Tom.

Tom Okray: Second question. What is being done to develop the necessary hydrogen infrastructure for the future?

Zoe Shin: Second question: what is being done to develop the necessary hydrogen infrastructure for the future?

Speaker Change: Thanks, Tom. Second question. What is being done to develop the necessary hydrogen infrastructure for the future?

Tom Okray: Thanks Soei. So the build out of hydrogen highway is on track. As we said, we expect to provide 14 fueling solutions in North America by year end. Our objective is to deliver a safe, reliable fueling network that enables customers to refuel hydrogen fuel cell electric trucks whenever they need a convenient location. And by the way, this is us, as well as other players in the ecosystem, can fuel there. As a strategy, we're launching stations and deploying assets where we anticipate demand. So you could see us over the course of the year; try out different locations.

Stephen Girsky: Thanks, Zoe. So the build out of the hydrogen highway is on track. As we said, we expect to provide 14 fueling solutions in North America by year end. Our objective is to deliver a safe, reliable fueling network that enables customers to refuel hydrogen fuel cell electric trucks whenever they need it at convenient locations.

Speaker Change: Thanks, Zoe. So, the build-out of the hydrogen highway is on track. As we said, we expect to provide 14 fueling solutions in North America by year-end.

Thomas Okray: Number three, Nikola has positioned ahead of competitor OEM. And number four, we've got a team that is really passionate about developing the hydrogen ecosystem. The profitability wheel is beginning to gain momentum, growing this significant and consistent order book. I can't emphasize it enough. It is so important for us to optimize costs both internally and with our external partners. And we're demonstrating this interest with the national accounts as we talked about in the prepared remarks.

Speaker Change: Our objective is to deliver a safe, reliable fueling network that enables customers to refuel hydrogen fuel cell electric trucks.

Stephen Girsky: And by the way, this is us, as well as other players in the ecosystem, can fuel there. As a strategy, we're launching stations and deploying assets where we anticipate demand. So you could see us over the course of the year and try out different locations.

Speaker Change: whenever they need at convenient locations. And by the way, this is us, as well as other players in the ecosystem can fuel their.

Speaker Change: As a strategy, we're launching stations and deploying assets where we anticipate demand. So you could see us over the course of the year try out different locations while most of the fuelers are in California. You could see us try out different locations outside of California and Canada.

Tom Okray: While most of the fuelers are in California, you could see us try out different locations outside of California and Canada. While our immediate focus is on modular sites, we're simultaneously developing permanent stations both independently and through partnerships. In addition to building a network in California, we've got Canada. And, as I said before, we're going to try outside of California.

Stephen Girsky: While most of the fuelers are in California, you could see us try out different locations outside of California and Canada. While our immediate focus is on modular sites, we're simultaneously developing permanent stations both independently and through partnership. In addition to building a network in California, we've got Canada. And as I said before, we're going to try outside of California. There's one more thing I'd add here.

Thomas Okray: We have to keep in mind though, accepting this new technology takes time and education. But bottom line, our high-touch sales team and the dealer network are making inroads with the national accounts with more demos and discussions in process and more to come. Thanks, Tom. Second question.

Speaker Change: While our immediate focus is on modular sites, we're simultaneously developing permanent stations both independently and through partnerships.

Speaker Change: In addition to building a network in California, we've got Canada, and as I said before, we're going to try outside of California.

Tom Okray: There's one more thing I'd add here. The fueling technology is improving like the truck technology is improving. And being on the front end of this allows us to continue to try new fueling technology, new fuelers. We have three different suppliers now. They're launching Gen 1, Gen 2, Gen 3. And being on the front end allows us to be part of that and be on the front end of cutting edge of that stuff as well.

Stephen Girsky: The fueling technology is improving, like the truck technology is improving, and being on the front end of this allows us to continue to try new fueling technology, new fuelers. We have three different suppliers now. They're launching Gen 1, Gen 2, Gen 3. And being on the front end allows us to be part of that and be on the front end of the cutting edge of that stuff as well.

Speaker Change: There's one more thing I'd add here. The fueling technology is improving like the truck technology is improving and being on the front end of this allows us to continue to try new fueling technology, new fuelers. We have three different suppliers now. They're launching Gen 1, Gen 2, Gen 3 and being on the front end allows us to be part of that and be on the front end of cutting edge of that stuff as well. We're going to try new fueling technology. We're going to try new fueling technology. We're going to try new fueling technology. We're going to try new fueling technology.

Stephen Girsky: What is being done to develop the necessary hydrogen infrastructure for the future? Thanks Soei. So the build out of hydrogen highway is on track. As we said, we expect to provide 14 fueling solutions in North America by year end. Our objective is to deliver a safe, reliable, fueling network that enables customers to refuel hydrogen fuel cell electric trucks whenever they need a convenient location. And by the way, this is us as well as other players in the ecosystem can fuel there.

Thomas Okray: Thanks Steve. Last question. How is Nikola attracting bigger logos?

Tom Okray: Thanks, Steve.

Tom Okray: Last question. How is Nikola attracting bigger logos? Well, given all the national accounts, there are many of them. Prioritization is very important. So we consider a number of factors, including but not limited to product fit for use case, geographical overlay with our existing and future hydrogen infrastructure, and the fleet sustainable goals. Following this prioritization, we engage the national accounts and describe to them how we believe Nikola fits into their strategic priorities and how we can help them achieve their goals. And these discussions include an invitation to our plant and coolage and offering a demo. You know, Steve likes to say seeing is believing in our demo list is full of prospects.

Speaker Change: Thanks, Steve. Last question. How is Nikola attracting bigger logos?

Thomas Okray: Given all the national accounts, there are many of them, prioritization is very important. So we consider a number of factors, including but not limited to product fit or use case, geographical overlay with our existing and future hydrogen infrastructure, and the fleet sustainable goals. Following this prioritization, we engage the national accounts and describe to them how we believe Nikola fits into their strategic priorities and how we can help them achieve their goals.

Speaker Change: Well, given all the national accounts, there's many of them, prioritization is very important. So we consider a number of factors, including, but not limited to, product fit or use case.

Stephen Girsky: As a strategy, we're launching stations and deploying assets where we anticipate demand. So you could see us over the course of the year, try out different locations. While most of the fuelers are in California, you could see us try out different locations outside of California and Canada. While our immediate focus is on modular sites, we're simultaneously developing permanent stations both independently and through partnerships. In addition to building a network in California, we've got Canada.

Speaker Change: Geographical overlay with our existing and future hydrogen infrastructure.

Speaker Change: and the Fleet Sustainable Goals. Following this prioritization, we engage the national accounts and describe to them how we believe Nikola fits into their strategic priorities, and how we can help them achieve their goals.

Stephen Girsky: And as I said before, we're going to try outside of California. There's one more thing I'd add here. The fueling technology is improving like the truck technology is improving. And being on the front end of this allows us to continue to try new fueling technology, new fuelers. We have three different suppliers now. They're launching Gen 1, Gen 2, Gen 3. And being on the front end allows us to be part of that and be on the front end of cutting edge of that stuff as well. Thanks, Steve. Last question.

Thomas Okray: And these discussions include an invitation to our plant in Coolidge and offering a demo. You know, as Steve likes to say, seeing is believing, and our demo list is full of prospects. They include national beverage distributors, grocers, health care, and chemical companies, as well as 3PLs, third-party logistics carriers who keep the supply chain in North America running. We're encouraged and excited to see that the demos go beyond California. As we've mentioned, the more we get fuel cells on the truck, the more credibility is gained for hydrogen, and the more like-minded partners come and join us.

Speaker Change: And these discussions include an invitation to our plants in Coolidge and offering a demo. You know, as Steve likes to say, seeing is believing, and our demo list is full of prospects. They include national beverage distributors, grocers,

Tom Okray: They include national beverage distributors, grocers, healthcare, chemical companies, as well as 3PLs, third party logistics carriers who keep the supply chain in North America running.

Speaker Change: healthcare, chemical companies, as well as 3PLs, third-party logistics carriers who keep the supply chain in North America running. We're encouraged and excited to see also that the demos go beyond California.

Tom Okray: We're encouraged and excited to see also that the demos go beyond California. As we've mentioned, the more we get the fuel cells on the truck, the more credibility is gained for hydrogen, and the more the like-minded partners come and join us.

Thomas Okray: How is Nikola attracting bigger logos? Well, given all the national accounts, there's many of them. Prioritization is very important. So we consider a number of factors, including but not limited to product fit for use case, geographical overlay with our existing and future hydrogen infrastructure and the fleet sustainable goals. Following this prioritization, we engage the national accounts and describe to them how we believe Nikola fits into their strategic priorities and how we can help them achieve their goals.

Speaker Change: As we've mentioned, the more we get the fuel cells on the truck, the more credibility is gained for hydrogen, and the more the like-minded partners come and join us.

Tom Okray: Thank you, Tom.

Unknown Executive: Operator, please open the line for analyst questions. Thank you. If you are dialed in via the telephone and would like to ask a question, please signal by pressing Star One on your telephone keypad. If you are using a speaker phone, please make sure your Diet Function has turned up to allow your signal to reach our equipment. Again, please press star one to ask a question.

Zoe Shin: Thank you, Tom. Operator, please open the line for analyst questions.

Speaker Change: Thank you, Tom. Operator, please open the line for analyst questions.

Operator: Thank you. If you are dialed in via the telephone and would like to ask a question, please signal by pressing star 1 on your telephone keypad. If you are using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. Again, please press star 1 to ask a question. Your first question comes from the line of Mike Shlisky with D.A. Davidson.

Speaker Change: Thank you. If you are dialed in via the telephone and would like to ask a question, please signal by pressing star 1 on your telephone keypad. If you are using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment.

Speaker Change: Again, please press star 1 to ask a question.

Thomas Okray: And these discussions include an invitation to our plant and coolage and offering a demo. You know, Steve likes to say seeing is believing in our demo list is full of prospects. They include national beverage distributors, grocers, healthcare, chemical companies, as well as 3PLs, third party logistics carriers who keep the supply chain in North America running. We're encouraged and excited to see also that the demos go beyond California. As we've mentioned, the more we get the fuel cells on the truck, the more credibility is gained for hydrogen and the more the like-minded partners come and join us.

Michael Shlisky: Your first question comes from the line of Mike Shlisky with DA David Sin. I might. Yes, hello, good morning.

Speaker Change: Your first question comes from the line of Mike Shlisky with D.A. Davidson.

Michael Shlisky: Yes. Hello. Good morning. Thanks for taking my question. Maybe I wanted to start off first by asking about... The Bill of Materials and gross profit. Do you have — Hey, Aaronson.

Speaker Change: I might.

Tom Okray: I wanted to start off first, asking about the bill of materials and gross profit. Do you have an additional round of reductions to the bill of materials coming? Are you talking with some of your suppliers about ordering in the larger quantities and asking for a different, for better pricing? Is there some kind of larger program here that might start maybe next year or so?

Mike Schliske: Yes, hello, good morning. Thanks for taking my questions.

Mike Schliske: Maybe I wanted to start off first asking about

Speaker Change: The Bill of Materials and Gross Profit. Do you have a...

Thomas Okray: Thank you. So we have an additional round of reductions to the bill of materials coming. Are you talking with some of your suppliers about ordering in larger quantities and asking for a different, for better pricing? Is there some kind of larger program here that might start maybe next year or something along those lines?

Speaker Change: Additional round of reductions to the bill of materials coming. Are you talking with some of your suppliers about ordering in the...

Speaker Change: Larger quantities and asking for a different, for better pricing. Is there some kind of larger program here that might start maybe next year or so we'll stick along those lines?

Thomas Okray: Thank you, Tom. Operator, please open the line for analyst questions. Thank you. If you are dialed in via the telephone and would like to ask a question, please signal by pressing star one on your telephone keypad. If you are using a speaker phone, please make sure your- Diet Function has turned up to allow your signal to reach our equipment. Again, please press star one to ask a question. Your first question comes from the line of Mike Shlisky with DA David Sin. I might. Yes, hello, good morning.

Thomas Okray: Absolutely, Mike. And that's a great question. One of the things that really helps us with our bill of materials is that our supplier base is really concentrated. You know, what do I mean by that? You know, we've got five suppliers who make up 65% of our bill of material cost, and, you know, the top 15 make up about 80%. So we're doing exactly what you said. We're working with each of those key suppliers and ensuring that we've got volume thresholds, which give a commensurate reduction in the bill of materials.

Tom Okray: Absolutely, Mike. And that's a great question. One of the things that really helps us with our bill of material is our supplier base is really concentrated. What do I mean by that? We've got five suppliers who make up 65% of our bill of material cost, and top 15 make up about 80%. So we're doing exactly what you said. We're working with each of those key suppliers and ensuring that we've got volume thresholds which give a commensurate reduction into the bill of material. In addition to that, we're looking at localization activities. Given that we're just getting started in terms of serial production, we don't have all of our suppliers in the right place.

Speaker Change: Absolutely, Mike, and that's a great question. One of the things that really helps us

Speaker Change: with our bill of material.

Speaker Change: is our supplier base is really concentrated. What do I mean by that? We've got five suppliers who make up

Speaker Change: 65% of our of our bill of material cost. And, you know, top 15 make up about 80%. So we're doing exactly what you said. We're working with each of those key suppliers.

Thomas Okray: I wanted to start off first, asking about the bill of materials and gross profit. Do you have a additional round of reductions to the bill of materials coming? Are you talking with some of your suppliers about ordering in the larger quantities and asking for a different, for better pricing? Is there some kind of larger program here that might start maybe next year or so? Absolutely, Mike. And that's a great question. One of the things that really helps us with our bill of material is our supplier base is really concentrated.

Speaker Change: and ensuring that we've got volume thresholds.

Speaker Change: which give a commensurate reduction into the bill of material. In addition to that, we're looking at localization activities.

Thomas Okray: In addition to that, we're looking at localization activities. You know, given that we're just getting started in terms of serial production, we don't have all of our suppliers in the right place. In fact, we've got almost 70% that come out from outside of the United States.

Speaker Change: You know, given that we're just getting started in terms of serial production, we don't have all of our suppliers in the right place. In fact, we've got almost 70% that comes out from outside of the United States. So there's opportunity to localize and get more efficient.

Tom Okray: In fact, we've got almost 70% that comes out from outside of the United States, so there's opportunity to localize and get more efficient. The third thing is we're redesigning some parts, making them more efficient, making them more cost effective; things that we're learning as we're putting trucks on the road and we're building the trucks.

Thomas Okray: So there's opportunity to localize and get more efficient. You know, the third thing is that we're redesigning some parts, making them more efficient, making them more cost-effective, things that we're learning as we're putting trucks on the road and building the trucks. And then the bigger longer-term issue is with our next-gen vehicle; we've got a huge opportunity to take even a bigger step down. But, but yeah, to get to your specific question, yes, we've got plans in place, and daily discussions.

Speaker Change: You know, the third thing is we're redesigning some parts, making them more efficient, making them more cost effective. Things that we're learning as we're putting trucks on the road and we're building the trucks.

Tom Okray: And then the bigger, longer-term issue is with our next-gen vehicle. We've got a huge opportunity to take even a bigger step down. But yeah, to get to your specific question, yes, we've got plans in place, daily discussions ongoing for next year and the year after that. And then with our next-gen vehicle, even a bigger step down as we have a more open bidding process and redesign of the components.

Speaker Change: And then the bigger, longer-term issue is with our next-gen vehicle, we've got a huge opportunity to take even a bigger step down.

Thomas Okray: What do I mean by that? We've got five suppliers who make up 65% of our bill of material cost and top 15 make up about 80%. So we're doing exactly what you said. We're working with each of those key suppliers and ensuring that we've got volume thresholds which give a commensurate reduction into the bill of material. In addition to that, we're looking at localization activities. Given that we're just getting started in terms of serial production, we don't have all of our suppliers in the right place.

Speaker Change: But yeah, to get to your specific question, yes, we've got plans in place, daily discussions ongoing for next year.

Thomas Okray: Ongoing for next year and the year after that, and then with our next-gen vehicle, even a bigger step down as we, you know, have a more open bidding process and redesign of the components. Thanks for the question, Mike. Yeah, Mike, and just to add, just like any new technology, the goal is to get it on the field and then start to learn, and then start to optimize. And we're on the field now.

Speaker Change: and the year after that, and then with our next-gen vehicle, even a bigger step down as we, you know, have a more open bidding process and redesign of the components.

Tom Okray: Thanks for the question, Mike. Yeah, Mike. And just to add, just like any new technology, the goal is to get it on the field and then start to learn and then start to optimize. And we're on the field now. And now we're moving to the optimization stage. Yes, that's a great point.

Speaker Change: Thanks for the question, Mike. Yeah, Mike, and just to add, just like any new technology, the goal is to get it on the field and then start to learn and then start to optimize. And we're on the field now, and now we're moving to the optimization stage. Yeah, that's a great point. I mean, you also, you know, maybe, Sar, you will see when you go through the details, we had a warranty reduction in the quarter. And part of that is, you know, learning how a given components are performing, redesigning those components, changing suppliers if we have to, but that's going to provide reduction as well.

Thomas Okray: And now we're moving to the optimization stage. Yeah, that's a great point. I mean, you also, maybe, sorry, you will see when you go through the details, we had a warranty reduction in the quarter. And part of that is, you know, learning how a given components are performing, redesigning those components, changing suppliers if we have to. But that's going to provide a reduction as well.

Tom Okray: And you also, you know, maybe sorry. You will see when you go through the details. We had a warranty reduction in the quarter. And part of that is, you know, learning how given components are performing, redesigning those components, changing suppliers, if we have to. But that's going to provide reduction as well.

Thomas Okray: In fact, we've got almost 70% that comes out from outside of the United States, so there's opportunity to localize and get more efficient. The third thing is we're redesigning some parts, making them more efficient, making them more cost effective, things that we're learning as we're putting trucks on the road and we're building the trucks. And then the bigger, longer-term issue is with our next-gen vehicle. We've got a huge opportunity to take even a bigger step down.

Unknown Speaker: I guess to follow up there, I'm curious as to your confidence level next year or, certainly, in 2026, you know, class eight. McCain, Dismissed.

Tom Okray: I guess to follow up there, I'm curious as to your confidence level next year or certainly in 2026. The classic market for diesel will be as busy as there have been, maybe an all-time record, certainly in a 25th of a pair of permissions changeovers. I guess I'm kind of concerned if they don't have problems getting what they need as far as brakes, counter-components, etc. some of the things that your trucks share with theirs. And the quantity that you need, I'm curious as to your confidence level to actually obtain the relatively small number of parts that you need for your vehicles when you're up against some of the larger players for very limited PI in 25 and 26.

Speaker Change: I guess to follow up there, I'm curious as to your confidence level next year or certainly in certainly in 2026, you know, the class eight.

Thomas Okray: But yeah, to get to your specific question, yes, we've got plans in place, daily discussions ongoing for next year and the year after that. And then with our next-gen vehicle, even a bigger step down as we have a more open bidding process and redesign of the components. Thanks for the question, Mike. Yeah, Mike. And just to add, just like any new technology, the goal is to get it on the field and then start to learn and then start to optimize.

Speaker Change: Market for Diesel will be as busy as there have been, maybe an all-time record, certainly in a twenty-fifth of a pair of permissions changeovers.

Unknown Speaker: I guess I'm kind of concerned if they're going to have problems getting what they need as far as brakes, cab components, et cetera, some of the things that your trucks share with theirs, you know, and in the quantities that you need. Kauffman. I'm curious as to your confidence level in actually obtaining it. The relatively small number of parts that you need for your vehicles when you're up against some of the larger players for a very limited pie in 25 and 26.

Speaker Change: I guess I'm kind of concerned if they're going to have problems getting what they need as far as brakes, cab components, etc. Some of the things that your trucks share with theirs.

Speaker Change: You know, and the quantities that you need, I'm curious as to your confidence level to actually obtain.

Speaker Change: The relatively small number of parts that you need for your vehicles when you're up against some of the larger players for very limited pie in 25 and 26.

Thomas Okray: And we're on the field now. And now we're moving to the optimization stage. Yes, that's a great point. And you also, you know, maybe sorry, you will see when you go through the details. We had a warranty reduction in the quarter. And part of that is you know, learning how given components are performing, redesigning those components, changing suppliers, if we have to. But that's going to provide reduction as well.

Tom Okray: Well, I mean fuel cell power modules on their trucks, batteries on their trucks. You're talking about the diesel pull ahead, is that what you're referencing, Mike? Yeah, I'm talking about things like hack opponents, brakes, steering wheel, things that you would share with those, obviously not the fuel cell parts, but the rest of the truck. I'm curious about some of the challenges your suppliers might be telling you about obtaining enough parts for relatively smaller players like Nicola in 25 and 26. Yeah, well we haven't seen any of that to date in the last quarter. We've had no indications with conversations, with the suppliers going forward.

Unknown Speaker: Well, I mean, fuel cell power modules aren't on their trucks. Batteries aren't on their trucks. You're talking about the diesel pull ahead. Is that what you're referencing, Mike?

Speaker Change: Well, I mean, fuel cell power modules aren't on their trucks, batteries aren't on their trucks. You're talking about the diesel pull-ahead, is that what you're referencing, Mike?

Michael Shlisky: Yeah, I'm talking about things like half-components, brakes, steering wheel, things that you would share with those. Obviously, not the fuel cell parts, but the rest of the truck. I'm curious about some of the challenges your suppliers might be telling you about obtaining enough parts for relatively smaller players like Nikola for $25,000.

Mike Schliske: Yeah, I'm talking about things like half components, brakes, steering wheel, things that you would share with those. Obviously not the fuel cell parts, but the rest of the truck. I'm curious about some of the challenges your suppliers might be telling you about, about obtaining enough parts for

Thomas Okray: I guess to follow up there, I'm curious as to your confidence level next year or certainly in 2026, the classic market for diesel will be as busy as there have been maybe an all-time record, certainly in a 25th of a pair of permissions changeovers. I guess I'm kind of concerned if they don't have problems getting what they need as far as brakes, counter-components, etc, some of the things that your trucks share with theirs.

Speaker Change: Relatively small players like Nikola in 25 and 26.

Thomas Okray: Yeah, we haven't seen any of that to date in the last quarter. We've had no indications from our conversations with the suppliers going forward. And as I mentioned, and as Steve amplified here, the majority of our cost in the bill of material is really specific to the fuel cell and the BEP truck, much smaller is common with the broader diesel market.

Speaker Change: Yeah, well, we haven't seen any of that to date in the last quarter. We've had no indications with, you know, with conversations with...

Tom Okray: And, as I mentioned, and as Steve amplified here, the majority of our costs in the build material is really specific to the fuel cell and the belt truck. Much smaller is common with the broader diesel market. We think we're in good shape. Most of the supply constraints we've had up till now are really new tech-related customers launching new tech versus the old tech stuff. We've got no indication from our suppliers that, given our volume expectations for the next few years, we're going to have issues. But bottom line, we're excited about what we can do with the build material cost reduction, what we can do with the freight and duties reduction, and what we can do with the warranty reduction.

Speaker Change: with the suppliers going forward.

Speaker Change: And as I mentioned, and as Steve, you know, amplified here, the majority of our cost in the bill of material is really specific to, you know, the fuel cell and the bed truck. Much smaller is common with the...

Thomas Okray: And the quantity that you need, I'm curious as to your confidence level to actually obtain the relatively small number of parts that you need for your vehicles when you're up against some of the larger players for very limited pi in 25 and 26. Well, I mean fuel cell power modules on on their trucks, batteries on on their trucks. You're talking about the diesel pull ahead, is that what you're referencing, Mike? Yeah, I'm talking about things like hack opponents, brakes, steering wheel, things that you would share with those, obviously not the fuel cell parts, but the rest of the truck.

Thomas Okray: We think we're in good shape. Most of the supply constraints we've had up till now are really new tech related, customers launching new tech versus the old tech stuff. We've got no indication from our suppliers that given our volume expectations for the next few years, we're going to have issues. But, bottom line, we're excited about what we can do with the bill of material cost reduction, what we can do with the freight and duties reduction, and what we can do with the warranty reduction.

Speaker Change: with

Steve Girsky: with the broader diesel market. We think we're in good shape. Most of the supply constraints we've had up till now are really new tech related, customers launching new tech versus the old tech stuff. We've got no indication from our suppliers that given our volume expectations for the next few years, we're going to have issues. But bottom line, we're excited about what we can do with the bill of material cost reduction, what we can do with the freight and duties reduction, and what we can do with the warranty reduction. And all of that comes together again with the flywheel, building that confidence.

Thomas Okray: And all of that comes together again with the flywheel, building that confidence in that order book so that we can go to our supplier partners, lock in the orders, lock in the step change cost reductions, and we're excited about what we can do over the next few years.

Thomas Okray: I'm curious about some of the challenges your suppliers might be telling you about obtaining enough parts for relatively smaller players like Nicola in 25 and 26. Yeah, well we haven't seen any of that to date in the last quarter. We've had no indications with conversations, with the suppliers going forward. And as I mentioned, and as Steve amplified here, the majority of our costs in the build material is really specific to the fuel cell and the belt truck.

Tom Okray: And all of that comes together again with the flywheel. So building that confidence of that order book that we can go to our supplier partners, lock in the orders, lock in the step change cost reductions down, and we're excited what we can do over the next few years.

Steve Girsky: of that order book that we can go to our supplier partners, lock in the orders, lock in the step change cost reductions down, and we're excited what we can do over the next few years.

Michael Shlisky: Thanks, and perhaps one last one for me, and that's the kid into deliveries orders into the first quarter of 2025.

Thomas Okray: Thanks, and perhaps one last one for me, and that's the cadence of deliveries and orders into the first quarter of 2025. Are you seeing any customers asking you to hold off until next year until either there's a rate change or an election change and how they elect to receive trucks from you, or are folks asking for things as soon as you can get them to them?

Steve Girsky: Thanks, and perhaps one last one for me, and that's the cadence of deliveries and orders into the first quarter of 2025.

Tom Okray: Are you seeing any customers asking you to hold off until next year until either there's a rate change or an election change, and how they elect you to stay trust with you, or are folks asking for things as soon as you can get to. No, no, most of our customers are trying to cycle vouchers now. A lot of these guys who understand the voucher opportunity in California, most of them are trying to get their voucher cycle. Yeah, they're trying to get their voucher cycle now.

Speaker Change: Are you seeing any customers asking you to hold off until next year until either there's a rate change or an election change?

Thomas Okray: Much smaller is common with the broader diesel market. We think we're in good shape. Most of the supply constraints we've had up till now are really new tech related customers launching new tech versus the old tech stuff. We've got no indication from our suppliers that given our volume expectations for the next few years, we're going to have issues. But bottom line, we're excited about what we can do with the build material cost reduction, what we can do with the freight and duties reduction, and what we can do with the warranty reduction.

Speaker Change: and how they like to receive trust from you or are folks asking for things?

Thomas Okray: No, most of our customers are trying to cycle vouchers now. A lot of these guys who understand the voucher opportunity in California, most of them are trying to get their vouchers cycled. Yeah, they're trying to get their voucher cycle going now, most of the businesses in California. Remember, everything here is in its infancy. You know, no one does a demo and says, I'm going to buy 500 trucks. They do a demo, they say, give me five or 10, then they say, give me 50, and then they know they have vouchers, and they're cycling vouchers in California or trying different routes in other parts of the country.

Tom Okray: Most of the businesses in California, remember everything here is in its infancy. No one does a demo and says, "I'm going to buy 500 trucks." They do a demo; they say, "give me five or 10," then they say, "give me 50," and then they know they have vouchers, and they're cycling vouchers in California, or trying different routes in other parts of the country.

Speaker Change: Yeah, they're trying to get their voucher cycle now, most of the businesses in California. Remember, everything here is in its infancy, you know, no one does a demo and says I'm going to buy 500 trucks. They do a demo, they say give me 5 or 10, then they say give me 50, and then they know they have vouchers and they're cycling vouchers in California or trying different routes in other parts of the country.

Thomas Okray: And all of that comes together again with the flywheel. So building that confidence of that order book that we can go to our supplier partners, lock in the orders, lock in the step change cost reductions down, and we're excited what we can do over the next few years.

Thomas Okray: Yeah, and remember, the national account customer is well aware that, in many cases, the big national accounts have thousands of units, and the discussions for them are more, you know, how can we get a pilot going? How can we fit into their sustainable goals. How can we be a partner for the longer term? How can they get comfortable with hydrogen? How can they get feedback from their drivers? Those types of discussions are more about the details than what's going to happen with the rates. We're relatively, and this is the beauty of the national account strategy, we are a relatively small piece of these big overall fleets; we don't need to take a large share of any one national account.

Tom Okray: And remember the national account customer is well, where in many cases the big national accounts have thousands of units, and the discussions for them are more, you know, how can we get a pilot going? How can we fit into their sustainable goals, sustainability goals? How can we be a partner longer term? How can they get comfortable with hydrogen? How can they get feedback from their drivers? Those types of, those are more the discussions than what's going to happen with the rates. We're a relatively, and this is the beauty of the national account strategy. We are a relatively small piece of these big overall fleets.

Speaker Change: Yeah, and remember the national account customer as well, where, you know, in many cases the big national accounts have, you know, thousands of units.

Thomas Okray: Thanks, and perhaps one last one for me, and that's the kid into deliveries orders into the first quarter of 2025. Are you seeing any customers asking you to hold off until next year until either there's a rate change or a election change, and how they elect you to stay trust with you, or are folks asking for things as soon as you can get to. No, no, most of our customers are trying to cycle vouchers now.

Speaker Change: The discussions for them are more, you know, how can we get a pilot going, how can we fit into their sustainable goals, sustainability goals, how can we be a partner longer term, how can they get comfortable with hydrogen, how can they get feedback from their drivers, those types of, those are more the discussions than what's going to happen with the rates.

Speaker Change: We're a relatively, and this is the beauty of the National Account Strategy, we are a relatively small piece of these big overall fleets. We don't need to take a big share of any one national account fleet.

Thomas Okray: A lot of these guys who understand the voucher opportunity in California, most of them are trying to get their voucher cycle. Yeah, they're trying to get their voucher cycle now. Most of the businesses in California, remember everything here is in its infancy. No one does a demo and says I'm going to buy 500 trucks. They do a demo, they say give me five or 10, then they say give me 50, and then they know they have vouchers, and they're cycling vouchers in California, or trying different routes in other parts of the country.

Tom Okray: We don't need to take a big share of any one national account.

Michael Shlisky: Ashley. Great, I appreciate it. Is that help? Is that help, Mike? Thank you, Mike. That's a lot. Thank you.

Unknown Speaker: Great! I appreciate it.

Speaker Change: Great. I appreciate it. Does that help? Does that help, Mike? Absolutely. Thank you, Mike. That clarifies a lot. Thank you.

Unknown Speaker: Does that help? Does that help, Mike? Absolutely. Thank you, Mike.

Gregory Lewis: Next question. Your next question comes from the line of Greg Lewis with BTIG. Please go ahead. Thank you. And Greg, thank you. Hey, how are you? Good morning, and thanks for taking my question. You know, you mentioned you're kind of been on this whirlwind tour. You know, you called out the potential to do strategic partnerships. You know, as you're working and talking with potential partners, you know, to kind of expand Nikola Nikola's footprint.

Operator: Your next question comes from the line of Greg Lewis with BTIG. Yeah, thank you. Hi, Greg. Thank you. Hey, hey. Steve, how are you? Good morning, and thanks for taking my questions. Go ahead.

Speaker Change: Thanks, Bob. You're next, Christopher.

Speaker Change: Your next question comes from the line of Greg Lewis with BTIG.

Greg Lewis: Please go ahead. Yeah, thank you. Hi, Greg. Thank you. Hey, Steve. How are you? Good morning and thanks for taking my questions. You know, you mentioned you're kind of been on this whirlwind tour, you know, you called out the potential to do strategic partnerships, you know, as you're working and talking with potential partners.

Thomas Okray: And remember the national account customer is well, where in many cases the big national accounts have thousands of units, and the discussions for them are more, you know, how can we get a pilot going? How can we fit into their sustainable goals, sustainability goals? How can we be a partner longer term? How can they get comfortable with hydrogen? How can they get feedback from their drivers? Those types of, those are more the discussions than what's going to happen with the rates.

Gregory Lewis: You know, you mentioned you've been on this whirlwind tour, you called out the potential to do strategic partnerships, you know, as you're working and talking with potential partners, you know, to kind of expand Nikola's footprint. Could you talk a little bit about where that makes sense and where those, you know, probably traction points are? Is it for, you know, hydrogen on the highway? Is it maybe bringing Nikola trucks, you know, maybe to Asia?

Greg Lewis: to kind of expand Nikola's footprint.

Gregory Lewis: Could you talk a little bit about where it makes sense and where those, you know, probably traction points are? Is it for, you know, is it for the hydrogen on the highway? Is it maybe bringing Nikola trucks in, you know, maybe to Asia? Could you just provide a little bit of color? And how you think about, you know, beyond the core business, which is putting trucks on the road in the US, how you're thinking about positioning the plan over the next couple of years.

Greg Lewis: Could you talk a little bit about where it makes sense and where those, you know, probably traction points are? Is it in, is it for a hot?

Greg Lewis: Is it for the hydrogen on the highway? Is it maybe bringing Nikola trucks, you know, maybe to Asia? Could you just provide a little bit of color in how you think about, you know, beyond the core business, which is putting trucks on the road in the U.S., how you're thinking about positioning the platform over the next couple of years?

Thomas Okray: We're a relatively, and this is the beauty of the national account strategy. We are a relatively small piece of these big overall fleets. We don't need to take a big share of any one national account. Ashley. Great, I appreciate it. Is that help? Is that help Mike? Thank you, Mike. That's a lot. Thank you. Next question.

Gregory Lewis: Could you just provide a little bit of color on how you think about, you know, beyond the core business, which is putting trucks on the road in the U.S., how you're thinking about positioning the platform over the next couple of years?

Stephen Girsky: Yeah, I'll start and then Tom will chime in. So listen, one refuel of our truck is the equivalent of refueling 60 fuel cell cars. Like we said in the release, we're going to have dispensed more hydrogen this year than the entire mobility industry. We're basically going to double the mobility use case for hydrogen in one year here. That's what these people see.

Steve Girsky: Yeah, I'll start, and then Tom will chime in. So listen, one refuel of our truck is the equivalent of repealing 60 fuel cell cars. Like we said in the release, we're going to have to spend more hydrogen this year than the entire mobility. We're basically going to double the mobility use case for hydrogen in one year here. That's what these people see; where the anchor of the ecosystem. And so is it H2 supply, H2 costs, H2 components. Yes, it could be sourcing, you know, a lot of these players in Asia. We, you know, source, you know, hydrogen's big in Asia.

Speaker Change: Yeah, I'll start and then Tom will chime in. So, listen, one refuel of our truck.

Speaker Change: is the equivalent of refueling 60 fuel cell cars.

Gregory Lewis: Your next question comes from the line of Greg Lewis with BTIG. Please go ahead. Thank you. And Greg, thank you. Hey, how are you? Good morning and thanks for taking my question. You know, you mentioned you're kind of been on this whirlwind tour. You know, you called out the potential to do strategic partnerships. You know, as you're working and talking with potential partners, you know, to kind of expand Nikola Nikola's footprint.

Tom Okray: Like we said in the release, we're going to have dispensed more hydrogen this year than the entire mobility. We're basically going to double the mobility use case for hydrogen in one year here.

Stephen Girsky: We're the anchor of the ecosystem. And so is H2 supply, H2 costs, and H2 components? Yes.

Stephen Girsky: It could be sourcing. You know, a lot of these players in Asia, you know, source. Hydrogen is big in Asia. Okay. Japan, Korea, China, what have you.

Tom Okray: That's what these people see. We're the anchor of the ecosystem. And so is it H2 supply, H2 costs, H2 components? Yes. It could be sourcing. You know, a lot of these players in Asia, you know, source, you know, hydrogen's big in Asia. Okay. Japan, Korea, China, what have you, hydrogen's bigger there than here. There's lots of components, other fuel cell power module players. There's hydrogen component players. That's when we say we're trying to build a coalition of the purpose-driven coalition. That's what we're trying to do is people who believe in the ecosystem come with us, help us lower our costs, help us defer capital, help us fund our business.

Tom Okray: OK, Japan, Korea, China would have you hydrogen's bigger there than here. There's lots of components of the fuel cell power module players. There's, so there's hydrogen component players. That's when we say we're trying to build the coalition of the purpose-driven coalition. That's what we're trying to do: is people who believe in the ecosystem come with us, help us lower our costs, help us defer capital, help us fund our business.

Stephen Girsky: Hydrogen is bigger there than here. There's lots of components, other fuel cell power module players. There are hydrogen component players. That's when we say we're trying to build a coalition of the purpose-driven coalition. That's what we're trying to do: people who believe in the ecosystem come with us, help us lower our costs, help us defer capital, and help us fund our business. Yeah. Let me just amplify, Greg. I think what's very exciting about the opportunity we have is we're really getting in on the ground floor of something that a lot of people believe in, but they haven't really had a chance to execute it. There's been this chicken and egg problem.

Gregory Lewis: Could you talk a little bit about where it makes sense and where those, you know, probably traction points are? Is it for, you know, is it for the hydrogen on the highway? Is it maybe bringing Nikola Trucks in, you know, maybe to Asia? Could you just provide a little bit of color? And how you think about, you know, beyond the core business, which is putting trucks on the road in the US, how you're thinking about positioning the plan over the next couple of years.

Tom Okray: Yeah, let me just amplify Greg. I think what's very exciting about the opportunity we have is we're really getting in on the ground floor that a lot of people believe in, but they haven't really had a chance to execute it. There's been this chicken and egg. Do you go with the vehicle first, or do you go with the infrastructure? So now we've got the vehicle on the road. So it makes us very attractive to talk to a number of strategic partners. You know, let's take for example, in the automotive world, the automotive world's been working on, you know, fuel cells for quite some time, but hasn't really made the progress that they've wanted to make.

Speaker Change: Thank you for your time. Thank you.

Speaker Change: Yeah, let me just amplify, Greg. I think what's very exciting about the opportunity we have is we're really getting in on the ground floor that a lot of people

Gregory Lewis: Yeah, I'll start and then Tom will chime in. So listen, one refuel of our truck is the equivalent of repealing 60 fuel cell cars. Like we said in the release, we're going to have to spend more hydrogen this year than the entire mobility. We're basically going to double the mobility use case for hydrogen in one year here. That's what these people see where the anchor of the ecosystem. And so is it H2 supply, H2 costs, H2 components.

Speaker Change: believe in, but they haven't really had a chance to execute it. There's been this chicken and egg. Do you go with the vehicle first, or do you go with the infrastructure? So now we've got the vehicle on the road, so it makes us very attractive to talk to a number of strategic partners. You know, let's take, for example, in the automotive world. The automotive world's been working on, you know, fuel cells for quite some time, but hasn't really made the progress that they've wanted to make. You know, now that we've got this offtake, we provide them with an opportunity to supply parts to us.

Thomas Okray: Do you go with the vehicle first, or do you go with the infrastructure? So now we've got the vehicle on the road. So it makes us very attractive to talk to a number of strategic partners. You know, let's take, for example, the automotive world. The Automotive world has been working on fuel cells for quite some time but hasn't really made the progress that they wanted to make. You know, now that we've got this offtake, we provide them with an opportunity to supply parts to us, and to invest in infrastructure with us.

Gregory Lewis: Yes, it could be sourcing, you know, a lot of these players in Asia. We, you know, source, you know, hydrogen's big in Asia. OK, Japan, Korea, China would have you hydrogen's bigger there than here. There's lots of components of the fuel cell power module players. There's so there's hydrogen component players. That's when we say we're trying to build the coalition of the purpose driven coalition. That's what we're trying to do is people who believe in the ecosystem come with us, help us lower our costs, help us defer capital, help us fund our business.

Tom Okray: You know, now that we've got this off take, we provide them with an opportunity to supply parts to us to invest in infrastructure with us. You've also got hydrogen producers who haven't had a transportation growth factor off take, and now they do. They've been mostly in industrial gases. You've got big energy; who this really hasn't been a growth factor for them, and it can be. And then you've got these commercial fleets, which both within their company as well as their customers, they've got sustainability goals. And you know, it's like Steve says, seeing is believing; you've got water coming out of that tailpipe.

Thomas Okray: You've also got hydrogen producers who, you know, haven't had a transportation growth vector offtake, and now they do. They've been mostly in industrial gases. You've got big energy companies who, you know, this really hasn't been a growth vector for them, and it can be. And then you've got these commercial fleets, which both within their company as well as with their customers, they've got sustainability goals. And, you know, it's like Steve says, seeing is believing. You've got water coming out of that tailpipe. So there's a lot of excitement and a lot of discussions here about joining forces with us and doing something great.

Speaker Change: to invest in infrastructure with us.

Speaker Change: You've also got hydrogen producers who, you know, haven't had a transportation growth vector offtake, and now they do. They've been mostly in industrial gases. You've got big energy who, you know, this really hasn't been a growth vector for them, and it can be. And then you've got these commercial fleets, which

Gregory Lewis: Yeah, let me just amplify Greg. I think what's very exciting about the opportunity we have is we're really getting in on the ground floor that a lot of people believe in, but they haven't really had a chance to execute it. There's been this chicken and egg. Do you go with the vehicle first or do you go with the infrastructure? So now we've got the vehicle on the road. So it makes us very attractive to talk to a number of strategic partners.

Speaker Change: both within their company as well as their customers, they've got sustainability goals. And, you know, it's...

Tom Okray: So there's a lot of excitement and a lot of discussions here of joining forces with us and doing something great.

Speaker Change: Like Steve says, seeing is believing. You've got water coming out of that tailpipe. So there's a lot of excitement and a lot of discussions here of joining forces with us and doing something great.

Gregory Lewis: Okay, great. And then I did want to touch a little bit, Tom, on the balance sheet. You know, just looking at, you know, cash burn in 2Q versus Q1, it was up a little bit. And, you know, I guess, you know, obviously there's some puts and takes in there. You know, as we think about, you know, getting that cash burn lower, as we think about this is a primarily just going to be, you know, pushing that ASP higher and volume. Or are there other things that we're thinking about here, you know, over the next couple quarters to kind of get that burn a little bit lower?

Gregory Lewis: Okay, great. And then, and then I did want to touch a little bit on Tom's balance sheet. You know, just looking at cash burn and into Q versus Q1, it was up a little bit. And, you know, I guess, you know, obviously, there's some puts and takes in there, you know, as we think about, you know, Mott, Sean Rontz, and Nancy D.

Speaker Change: [inaudible]

Speaker Change: Okay, great. And then and then I did want to touch a little bit on Tom on the balance sheet.

Gregory Lewis: You know, let's take for example, in the automotive world, the automotive world's been working on, you know, fuel cells for quite some time, but hasn't really made the progress that they've wanted to make. You know, now that we've got this off take, we provide them with an opportunity to supply parts to us to invest in infrastructure with us. You've also got hydrogen producers who haven't had a transportation growth factor off take and now they do.

Speaker Change: You know, just looking at, you know, cash burn in 2Q versus Q1, it was up a little bit. And, you know, I guess, you know, obviously there's some puts and takes in there. You know, as we think about, you know,

Anastasiya Pasterick: Anastasiya Pasterick

Gregory Lewis: They've been mostly in industrial gases. You've got big energy who this really hasn't been a growth factor for them and it can be. And then you've got these commercial fleets which both within their company as well as their customers, they've got sustainability goals. And you know, it's like Steve says, seeing us believing you've got water coming out of that tailpipe. So there's a lot of excitement and a lot of discussions here of joining forces with us and doing something great. Okay, great.

Tom Okray: Well, you know, like many things, you know, Greg related to cash, it's multi-pronged. You know, we need to get better with our cash conversion cycle. And we actually did quarter over quarter. You know, we took out 78 days, which is a 35% improvement. So, you know, we will continue to work on that. It's still too high. We can also work on, you know, working with CARB and working with our dealers to get our voucher process working better, which helps again our cash conversions cycle.

Thomas Okray: Well, you know, like many things, you know, Greg related to cash, it's, it's a multi-pronged issue. We need to get better with our cash conversion cycle. And we actually did, quarter over quarter, we took out 78 days, which is a 35% improvement. So, you know, we will continue to work on that. It's, it's still too high.

Speaker Change: Well, you know, like like many things, you know, Greg related to cash, it's it's multi-pronged You know, we need to get better with our cash conversion cycle and and we actually did quarter over quarter

Anastasiya Pasterick: We took out 78 days, which is a 35% improvement. So, you know, we will continue to work on that. It's still too high. We can also work on, you know,

Thomas Okray: We can also work on, you know, working with CARB and working with our dealers to get our voucher process working better, which helps again with our cash conversion cycle. What we really want to avoid is doing draconian actions which are going to hurt what we think is a very exciting prospect. And our potential strategic partners think we don't want to, you know, cut hydrogen or delay hydrogen infrastructure; we don't want to delay the next-gen development of our vehicle and redesign parts for lower cost.

Anastasiya Pasterick: Working with CARB and working with our dealers to get our voucher process working better, which helps, again, our cash conversion cycle.

Thomas Okray: And then I did want to touch a little bit, Tom, on the balance sheet. You know, just looking at, you know, cash burn in 2Q versus Q1, it was up a little bit. And, you know, I guess, you know, obviously there's some puts and takes in there. You know, as we think about, you know, getting that cash burn lower as we think about this is a primarily just going to be, you know, pushing that ASP higher and volume.

Tom Okray: What we really want to avoid is doing draconian actions, which are going to hurt what we think is a very exciting prospect. And our potential strategic partners think we don't want to, you know, cut hydrogen or delay hydrogen infrastructure. We don't want to delay our next gen development of our vehicle and redesigning parts for lower cost. So we're confident that we've got enough people who want to invest in the company that we're going to be fine from a cash flow perspective. Obviously, as we start to hit those volume thresholds and the gross margin continues to go up, we'll burn less cash.

Speaker Change: What we really want to avoid is doing draconian actions which are going to hurt what we think is a very exciting prospect in our society.

Speaker Change: potential strategic partners think. We don't want to, you know, cut hydrogen or delay hydrogen infrastructure. We don't want to delay our next gen development of our vehicle and redesigning parts for lower cost. So we're confident that we've got enough people who want to invest in the company that we're going to be fine from a cash flow perspective. Obviously, as we start to hit those volume thresholds,

Thomas Okray: So we're confident that we've got enough people who want to invest in the company that we're going to be fine from a cash flow perspective. Obviously, as we start to hit those volume thresholds, and the gross margin continues to go up, we'll burn less cash. So that's a very big lever for us as well. Price, you've seen it go up three quarters in a row, and we'll always look at that. But the bigger thing for us is the volume, as we stated.

Thomas Okray: Or are there other things that that we're thinking about here, you know, over the next couple quarters to kind of get that burn a little bit lower? Well, you know, like many things, you know, Greg related to cash, it's multi pronged. You know, we need to get better with our cash conversions cycle. And we actually did quarter over quarter. You know, we took out 78 days, which is 35% improvement. So, you know, we will continue to work on that.

Tom Okray: So that's a very big lever for us as well. Price, you've seen it go up three quarters in a row, and we'll always look at that. But the bigger thing for us is the volume, as we stated. Super helpful.

Speaker Change: and the gross margin continues to go up, we'll burn less cash. So that's a very big lever for us as well. Price, you've seen it go up three-quarters in a row and we'll always look at that, but the bigger thing for us is the volume as we stated.

Unknown Speaker: Super helpful. Thank you very much.

Gregory Lewis: Thank you very much. Thanks, Greg.

Unknown Speaker: Thanks, Greg. I appreciate it.

Thomas Okray: It's still too high. We can also work on, you know, working with CARB and working with our dealers to get our voucher process, working better, which helps again our cash conversions cycle. What we really want to avoid is doing draconian actions, which are going to hurt what we think is a very exciting prospect. And our potential strategic partners think we don't want to, you know, cut hydrogen or delay hydrogen infrastructure. We don't want to delay our next gen development of our vehicle and redesigning parts for lower cost.

Jeffrey Kauffman: Appreciate it. Your next question comes from the line of Jeff Kauffman with Vertical Research Partners. Please go ahead. Thank you very much. Congratulations, everyone.

Speaker Change: Super helpful. Thank you very much.

Operator: Your next question comes from the line of Jeff Kauffman with Vertical Research Partners. Please go ahead.

Greg Lewis: Thanks, Greg. Appreciate it.

Greg Lewis: Your next question comes from the line of Jeff Kaufman with Vertical Research Partners.

Jeffrey Kauffman: Thank you very much. Congratulations, everyone.

Speaker Change: Please go ahead.

Jeff Kaufman: Thank you very much. Good job. Hey. How are you? Congratulations, everyone. Good.

Tom Okray: Hey, Tom, I want to get back to balance sheet and cash because, you know, I always thought as a rule of thumb, you wanted to keep about six months' cash on the balance sheet, but just listening to your comments, you feel like we got partners that want to invest. We can bring cash in at any point, but if I take your 256 million of unrestricted cash and just assume that the burn is similar in three Q versus two Q, you're going to be about six months by the end of the quarter. So how do we think about what the right cash level is where you're comfortable for the company and, you know, what levers are out there that we can bring in cash to stay above that level.

Jeff Kaufman: Hey, Tom, I want to get back to balance sheet and cash because, you know, I always thought as a rule of thumb, you wanted to keep about six months cash.

Speaker Change: on the balance sheet. But just listening to your comments, you feel like we got partners that want to invest, we can bring cash in at any point. But

Unknown Speaker: Hey, Tom, I want to get back to the balance sheet and cash. Because, you know, I always thought, as a rule of thumb, you wanted to keep about six months' cash on the balance sheet, but just listening to your comments, you feel like we have partners that want to invest, and we can bring cash in at any point. But if I take your $256 million of unrestricted cash and just assume that the burn is similar in 3Q versus 2Q, you're going to be about six months by the end of the quarter. So how do we think about what the right cash level is, where you're comfortable for the company, and, you know, what levers are out there that we can pull in cash to stay above that level?

Speaker Change: If I take your $256 million of unrestricted cash and just assume that the burn is similar,

Thomas Okray: So we're confident that we've got enough people who want to invest in the company that we're going to be fine from a cash flow perspective. Obviously, as we start to hit those volume thresholds and the gross margin continues to go up, we'll burn less cash. So that's a very big lever for us as well. Price, you've seen it go up three quarters in a row and we'll always look at that. But the bigger thing for us is the volume as we stated. Super helpful. Thank you very much. Thanks, Greg. Appreciate it.

Speaker Change: in 3Q versus 2Q, you're gonna be about six months by the end of the quarter. So how do we think about what the right cash level is where you're comfortable for the company and what levers are out there that we can bring in cash to stay above that level?

Tom Okray: Yeah, appreciate the question, Jeff. Well, your math is pretty good math, and it's math that we do and we look at every day. And, you know, when I said to Greg in the last question that, you know, we're focusing on a number of things. We're also focusing on being in the market and talking to investors to ensure that we've got enough cash to run our, you know, operations and, you know, what do I think is a good amount of cash to have on hand. I mean, ideally, as we enter next year, you know, we would like to have enough cash where we can operate for a full fiscal year, unencumbered, without going into the market and just focus on chopping wood and execution.

Thomas Okray: Yeah, I appreciate the question, Jeff. Well, your math is pretty good math, and it's math that we do and look at every day.

Speaker Change: Yeah, I appreciate the question, Jeff. Your math is pretty good math, and it's math that we do and we look at every day.

Jeffrey Kauffman: Your next question comes from the line of Jeff Kauffman with vertical research partners. Please go ahead. Thank you very much. Congratulations, everyone. Hey, Tom, I want to get back to balance sheet and cash because, you know, I always thought as a rule of thumb, you wanted to keep about six months cash on the balance sheet, but just listening to your comments, you feel like we got partners that want to invest. We can bring cash in at any point, but if I take your 256 million of unrestricted cash and just assume that the burn is similar in three Q versus two Q, you're going to be about six months by the end of the quarter.

Speaker Change: When I said to Greg in the last question that we're focusing on a number of things, we're also focusing on being in the market and talking to investors to ensure that we've got enough cash to run our business.

Jeffrey Kauffman: So how do we think about what the right cash level is where you're comfortable for the company and, you know, what levers are out there that we can bring in cash to to stay above that level. Yeah, appreciate the question, Jeff. Well, your math is pretty good math and it's math that we do and we look at every day and, you know, when I said to Greg in the last question that, you know, we're focusing on a number of things.

Thomas Okray: And, you know, when I said to Greg in the last question that, you know, we're focusing on a number of things, we're also focusing on being in the market and talking to investors to ensure that we've got enough cash to run our operations. And, you know, what do I think is a good amount of cash to have on hand? I mean, ideally, as we enter next year, we would like to have enough cash that we can operate for a full fiscal year unencumbered without going into the market and just focus on chopping wood and execution.

Speaker Change: Operations. And, you know, what do I think is a good amount of cash to have on hand? I mean, I ideally, as we enter next year, you know, we would like to have enough cash where we can operate for a full fiscal year unencumbered without going into the market and just focus on chopping wood and execution. So that's kind of the way I look at it. You know, right now, we finished the quarter with 283 total, 255.

Tom Okray: So that's kind of the way I look at it. You know, right now, we finished the quarter with 283 total, 255 unrestricted, and, and yeah, I mean, you know, that would put us with our normal cash burn toward the end of the year. You know, we'll be getting, we'll be getting close to being out of cash. We recognize that we're talking to the right people, and we're confident that we will get to a place where we can achieve that goal of operating next year unencumbered, without having to go to the market continuous.

Thomas Okray: So that's kind of the way I look at it. You know, right now, we finished the quarter with $283 total, $255. Unrestricted funding and, and yeah, I mean, that would put us with our normal cash burn toward the end of the year. You know, we'll be getting close to being out of cash, but we recognize that we're talking to the right people. And we're confident that we will get to a place where we can achieve that goal of operating next year unencumbered without having to go to the market continuously.

Speaker Change: Unrestricted and yeah I mean you know that would put us with our normal cash burn toward the end of the year you know we'll be getting we'll be getting close to being out of cash. We recognize that we're talking to the right people and we're confident that we will get to a place where we can achieve that goal of operating next year unencumbered without having to go to the market continuously.

Tom Okray: Well, look forward to that. Thank you.

Thomas Okray: I look forward to that. Thank you.

Tom Okray: And could you give us an idea, as you know, I love that you are starting to monetize the potential for the credits. How should we think about contribution to the bottom line on the fueling and how should we think about contribution on the credits as we're modeling out 24 and 25 to do these credit amounts that you achieve this quarter. Are they going to be a little more consistent as the fleet itself grows and you're running more miles on those trucks? Absolutely, let me just unpack the credit growth for you. We've got two types of carp credits.

Jeffrey Kauffman: We're also focusing on being in the market and talking to investors to ensure that we've got enough cash to run our, you know, operations and, you know, what do I think is is a good amount of cash to have on hand. I mean, ideally, as we enter next year, you know, we would like to have enough cash where we can operate for a full fiscal year, unencumbered without going into the market and just focus on chopping wood and execution.

Speaker Change #100: Well, I look forward to that. Thank you. And could you give us an idea, you know, I love that you are starting to monetize the potential for the credits.

Thomas Okray: And could you give us an idea, as you know, I love that you are starting to monetize the potential for the credit. How should we think about contribution to the bottom line on the fueling, and how should we think about contribution on the credits as we're modeling out 24 and 25? These credit amounts that you achieve this quarter, are they going to be a little more consistent as the fleet itself grows and you're running more miles on those trucks?

Speaker Change #101: How should we think about contribution to the bottom line on fueling and how should we think about contribution

Speaker Change #102: on the credits as we're modeling out 24 and 25. Do these credit amounts that you achieve this quarter, are they going to be a little more consistent as the fleet itself grows and you're running more miles on those trucks?

Jeffrey Kauffman: So that's kind of the way I look at it. You know, right now, we finished the quarter with 283 total, 255 unrestricted and, and yeah, I mean, you know, that would put us with our normal cash burn toward the end of the year. You know, we'll be getting, we'll be getting close to being out of cash. We recognize that we're talking to the right people and we're confident that we will get to a place where we can achieve that goal of operating next year unencumbered without having to go to the market continuous. Well, look forward to that. Thank you.

Thomas Okray: Absolutely. I mean, let me just unpack the credit world for you. We've got two types of CARB credits. You know, one is related to NOx and particulate matter, and the other one is a more general ACT one.

Speaker Change #103: Absolutely. I mean, let me just unpack the credit world for you.

Tom Okray: One is related to knocks and particulate matter, and the other one is a more general ACT one. And you know, together, you know, we think they can be 45 to 50,000 a unit. Now, obviously, you know, you're negotiating with the people you're monetizing with, but that's a large number. And what we're also seeing, which is exciting, is that right now it's California only, it's CARB, but we see other states looking to adopt similar things. And, you know, the OEM Zebsale Percentage Schedule for Carb, you know, goes up quite significantly all the way to, you know, 2020-2032, where you've got to have 40% of your Class A vehicle Zeb.

Speaker Change #102: We've got two types of CARB credits.

Speaker Change #102: You know, one is related to NOx and particulate matter, and the other one is a more general ACT one. And, you know, together, you know, we think they can be

Speaker Change #102: $45,000 to $50,000 a unit. Now, obviously, you know, you're negotiating with the people you're monetizing with.

Thomas Okray: And, you know, together, we think they can be between 45 and $50,000 a unit. Now, obviously, you know, you're negotiating with the people you're monetizing with. But that's a large number.

Speaker Change #104: But, but that's a large number. And what we're also seeing, which is exciting, is that there right now it's California only, it's CARB, but we see other states looking to adopt similar things. And, you know, the

Thomas Okray: And could you give us an idea as you know, I love that you are starting to monetize the potential for the credits. How should we think about contribution to the bottom line on the fueling and how should we think about contribution on the credits as we're modeling out 24 and 25 to do these credit amounts that you achieve this quarter. Are they going to be a little more consistent as the fleet itself grows and you're running more miles on those trucks?

Speaker Change #105: The OEM ZEV sale percentage schedule for CARB, you know, goes up quite significantly all the way to, you know, 2020-2032, where you got to have 40% of your Class VIII vehicles ZEV. So

Thomas Okray: And what we're also seeing, which is exciting, is that right now, it's California only, it's CARB, but we see other states looking to adopt similar things. And, you know, the OEM ZEV sale percentage schedule for CARB goes up quite significantly all the way to, you know, 2020, 2032, where you got to have 40% of your class eight vehicles ZEV. So we think that's going to be a great revenue stream for us. We think that that's in, you know, 100% gross profit. So we really like that. More to come on that. Obviously, as volume grows, that gets to be a bigger deal for us.

Tom Okray: So we think that's going to be a great revenue stream with us. We think that that's, you know, it's 100% gross profit. So we really like that. More to come on that, obviously. As volume grows, that gets to be a bigger deal for us. And listen, a GM, we go out credits every year, and they make a trade-off in their minds to put a big truck in the market. It may make sense to me to buy credits versus put a zero-mission truck in the market, where I lose a bunch of money on it. Absolutely. And this is the benefit of being first mover.

Speaker Change #106: We think that's going to be a great revenue stream with us. We think that that's, you know, it's 100% gross profit. So we really like that. More to come on that. Obviously, as volume grows, that gets to be a bigger deal for us.

Thomas Okray: Absolutely, let me just unpack the credit growth for you. We've got two types of carp credits. One is related to knocks and particulate matter, and the other one is a more general ACT one. And you know, together, you know, we think they can be 45 to $50,000 a unit. Now obviously, you know, you're negotiating with the people you're monetizing with, but that's a large number. And what we're also seeing, which is exciting, is that right now it's California only, it's carb, but we see other states looking to adopt similar things.

Thomas Okray: And listen, at GM, we bought credits every year, and they make a tradeoff in their minds. To put a big truck in the market, it may make sense for me to buy credits versus putting a zero emission truck in the market where I lose a bunch of money on it. Absolutely. And this is the benefit of being a first mover. You know, you could Google it.

Speaker Change #107: And listen, at GM we bought credits every year, and they make a trade-off in their minds. To put a big truck in the market, it may make sense to me to buy credits versus put a zero-emission truck in the market where I lose a bunch of money on it.

Thomas Okray: Absolutely, and this is the benefit of being a first mover. You get good at understanding the legislation, monetizing it, working with partners who are doing this type of trade-off, and helping them out.

Tom Okray: You know, you get good at understanding the legislation, monetizing it, working with partners who are doing this type of trade-off, helping them out. So, you know, we dipped our toe in the water in Q2. We think it's going to be bigger, and we think it could potentially be quite big in the future. And the key thing to think about, you know, we said this, we said this a couple of times in the prepared remarks. The way we believe it is we're in serial production, trucks on the road. If you want to go big with hydrogen and Class A, you can either go with us now in 2024, or if you're going with somebody else, we think it's going to be end of the decade.

Speaker Change #108: Absolutely. And this is a benefit of being first mover, you know, you get good at understanding the legislation, monetizing it, working with, with partners who are doing this type of trade off, helping them out. So

Thomas Okray: So we, you know, we dipped our toe in the water in Q2. We think it's going to be bigger, and we think it could potentially be quite big in the future. Thank you very much. And the key thing to think about, you know, we said this a couple of times in the prepared remarks, the way we believe it is we're in serial production, trucks on the road. If you want to go big with hydrogen and Class VIII, you can either go with us now in 2024, or if you're going with somebody else, we think it's going to be the end of the decade.

Speaker Change #109: We, you know, we, we dipped our toe in the water and in Q2, we think it's going to be bigger and we think it could potentially be quite big in the future.

Thomas Okray: And, you know, the OEM Zebsale Percentage Schedule for Carb, you know, goes up quite significantly all the way to, you know, 2020-2032, where you've got to have 40% of your Class A vehicle Zeb. So we think that's going to be a great revenue stream with us. We think that that's, you know, it's 100% gross profit. So we really like that. More to come on that, obviously, as volume grows, that gets to be a bigger deal for us.

Speaker Change #109: And the key thing to think about, you know, we've said this, we've said this a couple of times in the prepared remarks.

Jeffrey Kauffman: Thank you very much. Appreciate it.

Speaker Change #109: Thank you very much.

Operator: Once again, if you would like to ask a question, please signal by pressing star 1 on your telephone keypad. We will take our next question from Ben Kallo with Baird.

Unknown Executive: Once again, if you would like to ask a question, please signal by pressing star one on your telephone keypad.

Speaker Change #109: Appreciate it.

Speaker Change #110: Once again, if you would like to ask a question, please signal by pressing star 1 on your telephone keypad. We will take our next question from Ben Callow with Baird.

Dan Callow: We will pick our next question from Dan Callow with Baird. Please go ahead. Thank you, guys. Good morning.

Thomas Okray: And listen, a GM, we go out credits every year, and they make a trade-off in their minds to put a big truck in the market. It may make sense to me to buy credits versus put a zero-mission truck in the market, where I lose a bunch of money on it. Absolutely. And this is the benefit of being first mover. You know, you get good at understanding the legislation, monetizing it, working with partners who are doing this type of trade-off, helping them out.

Benjamin Kallo: Hey guys, good morning. Just on that last question, or the last answer about the end of the decade for hydrogen, how do you think about EV trucks, maybe Tesla specifically, coming to market as competition? Do your customers think about competition that way, versus diesel, or versus EV, versus hydrogen? And then my second question is, and I know you guys touched on this a lot, but just because we're getting close to November, could you just remind us of any kind of political risk you have or how you view that going forward? Thank you guys very much, and congrats.

Speaker Change #111: Please go ahead. Thank you, guys.

Steve Girsky: Just talk that last question or the last answer about end of decade for Hike. How do you think about just the EV trucks, maybe Tesla is specifically coming to market as competition and I guess do your customers think about competition that way or versus diesel versus EV versus hydrogen? And then my second question is just I know you guys touched on this a bunch but just because we're getting close to November could you just remind us any kind of political risk you have or how you view that? George Ward, thank you guys very much for your time.

Ben Callow: Hey guys, good morning. Just on that last question or the last answer about the end of the decade for hydrogen.

Speaker Change #113: How do you think about EV trucks, maybe Tesla specifically, coming to market as competition?

Thomas Okray: So, you know, we dipped our toe in the water in Q2. We think it's going to be bigger, and we think it could potentially be quite big in the future. And the key thing to think about, you know, we said this, we said this a couple times in the prepared remarks. The way we believe it is we're in serial production, trucks on the road. If you want to go big with hydrogen and Class A, you can either go with us now in 2024, or if you're going with somebody else, we think it's going to be end of the decade. Thank you very much. Appreciate it.

Speaker Change #114: But do your customers think about competition that way or, you know, versus?

Speaker Change #115: Diesel or versus you know PV versus you know hydrogen. And then my second question is just and I know you guys touched on this a bunch but just because we're getting close to November could you just remind us any kind of political risk you have or how you view that going forward. Thank you guys very much and congrats.

Stephen Girsky: Let me take the last one first. We get questions on political risk all the time. Some parties seem to like EVs more than others. We would say that there are as many, if you look around where the big hydrogen projects are, there are as many hydrogen projects in red states as there are blue states. There's a lot, how you create hydrogen is different, but there's still going to be a lot of activity, we believe around hydrogen going forward, no matter what. On the first question, let me put it this way.

Steve Girsky: Thank you, Laura.

Steve Girsky: Let me take the last one first. We get the question on political risk all the time. Some parties seem to like EVs more than others. We would say that there are as many if you look around where the big hydrogen projects are, there are many hydrogen projects in red states as there are in blue states. There's a lot how you create the hydrogen is different, but there's still going to be a lot of activity, we believe, around hydrogen going forward no matter what. On the first question, let me put it this way: so we have one of our customers who started their zero mission journey by buying six of somebody else's battery electric trucks.

Speaker Change #116: Let me take the last one first.

Speaker Change #117: We get the question on political risk all the time. Some parties seem to like EVs more than others.

Gregory Lewis: Once again, if you would like to ask a question, please signal by pressing star one on your telephone keypad. We will pick our next question from Dan Callow with Baird. Please go ahead. Thank you guys. Good morning.

Speaker Change #118: We would say that there are as many, if you look around where the big hydrogen projects are, there are as many hydrogen projects in red states as there are blue states.

Speaker Change #118: There's a lot of how you create the hydrogen is different, but there's still going to be a lot of activity, we believe, around hydrogen going forward, no matter what. On the first question.

Stephen Girsky: Just talk that last question or the last answer about end of decade for Hike. How do you think about just the EV trucks, maybe Tesla is specifically coming to market as competition and I guess do your customers think about competition that way or versus diesel versus EV versus hydrogen and then my second question is just I know you guys touched on this a bunch but just because we're getting close to November could you just remind us any kind of political risk you have or how you view that George Ward, thank you guys very much for your time.

Stephen Girsky: So we have one of our customers who started their zero emission journey by buying six batteries for somebody else's battery electric truck. That's a lot. That's a lot.

Speaker Change #118: Let me put it this way. So, we have one of our customers who started their zero-emission journey by buying six of somebody else's battery electric trucks.

Stephen Girsky: The range they stated was, this company operates around the ports, is one of the guys in our video, but they said they bought six trucks, the manufacturer told them the range would be 220 miles on a charge, and they were getting 150. And furthermore, it was taking them an hour and a half to two hours to refuel. And this guy started buying, this company started buying our trucks more and more and more.

Steve Girsky: The range they stated was this company operates around the ports. Is one of the guys in our video, but they said they bought six trucks. They said the manufacturer told them the range would be 220 miles on the charge, and they were getting 150. Furthermore, it was taking them an hour and a half to two hours to refuel. And this guy started buying this company, started buying our trucks more and more and more, and now they're the biggest owner of our trucks, frankly. And one of the things he says is, I run two shifts a day.

Speaker Change #119: The range they stated was, this company operates around the ports, is one of the guys in our video, but they said they bought six trucks, they said the manufacturer told them the range would be 220 miles on a charge and they were getting 150.

Speaker Change #119: And furthermore, it was taking them an hour and a half to two hours to refuel. And this guy started buying, this company started buying our trucks.

Stephen Girsky: Thank you, Laura. Let me take the last one first. We get the question on political risk all the time some parties seem to like EVs more than others. We would say that there are as many if you look around where the big hydrogen projects are there is many hydrogen projects and red states as there are blue states. There's a lot how you create the hydrogen is different but there's still going to be a lot of activity we believe around hydrogen going forward no matter what.

Stephen Girsky: And now they're the biggest owner of our trucks, frankly. And one of the things he says is, I run two shifts a day. Once my driver, your fuel cell trucks weigh the same as everybody else's battery truck, I can refuel them a lot faster, and it's very hard for me to get power to the port where it is. So his driver ends a shift, and the next one immediately takes over.

Speaker Change #119: Moore and Moore, and now they're the biggest owner of our trucks, frankly, and one of the things he says is, I run two shifts a day.

Steve Girsky: Once I my driver your fuel cell trucks weigh the same as everybody else's battery truck. I can refuel them a lot faster, and it's very hard for me to get power to the port to my deep aware 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. So he gets in his world and again it's very root specific in his world. Fuel cell is actually more efficient than battery. The other thing you have to deal with besides the range fluctuation is we have customers that like battery trucks who are coming over and starting to set up for demos that try everybody else's battery trucks, but what they're learning is battery trucks don't work everywhere.

Speaker Change #120: Once your fuel cell trucks weigh the same as everybody else's battery truck, 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

Speaker Change #121: and the next one immediately takes over. They don't have to wait an hour and a half to recharge a truck. So he gets, in his world, and again, it's very route specific, in his world, fuel cell is actually more efficient than battery.

Stephen Girsky: They don't have to wait an hour and a half to recharge a truck. So he gets, in his world, and again, it's very route specific, in his world, the fuel cell is actually more efficient than the battery. The other thing you have to deal with, besides the range fluctuation, is customers that like battery trucks who are coming over and starting them up for demos that try everybody else's battery trucks, but what they're learning is battery trucks don't work everywhere.

Stephen Girsky: On the first question let me put it this way so we have one of our customers who started their zero mission journey by buying six of somebody else's battery electric trucks. The range they stated was this company operates around the ports is one of the guys in our video but they said they bought six trucks. They said the manufacturer told them the range would be 220 miles on the charge and they were getting 150 and furthermore it was taking them an hour and a half to two hours to refuel.

Speaker Change #122: The other thing you have to deal with besides the range fluctuation, we have customers that like battery trucks who are coming over and starting 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.

Stephen Girsky: 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 are use cases for 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. Yeah, let me just amplify, you know, in the quarter, our average...

Steve Girsky: 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. Yeah let me just amplify you know in the quarter our average fill was was 38 kilograms. So you know just just to do the just to do the math with our fuel economy that translates to roughly 275 miles.

Stephen Girsky: And this guy started buying this company started buying our trucks more and more and more and now they're the biggest owner of our trucks frankly. And one of the things he says is I run two shifts a day. Once I my driver your fuel cell trucks weigh the same as everybody else's battery truck. I can refuel them a lot faster and it's very hard for me to get power to the port to my deep aware it is.

Thomas Okray: Yeah, let me just amplify, you know, in the quarter, our average fill was 38 kilograms. You know, just just to do the math with our fuel economy, that translates to roughly 275 miles. So, as Steve says, you're getting much longer range for these uses for these haulers. It's also a much quicker fill, you know, about 20 minutes or so or even less.

Stephen Girsky: 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. So he gets in his world and again it's very root specific 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 starting setting up for demos that try everybody else's battery trucks but what they're learning is battery trucks don't work everywhere.

Speaker Change #123: Yeah, let me just amplify, you know, in the quarter, our average fill was 38 kilograms.

Speaker Change #123: Just to do the math with our fuel economy, that translates to

Steve Girsky: So, as these say, you're getting much longer range for these uses for these haulers. It's also a much quicker fill, you know, about 20 minutes or so, or even less.

Speaker Change #123: roughly 275 miles. So, as Steve says, you're getting much longer range for these uses for these haulers. It's also a much quicker fill, you know, about 20 minutes or so or even less.

Thomas Okray: And the final thing that I'd like to say on this is, as we redesign this vehicle, our next-gen vehicle, we're going to have a high level of commonality between BEV and fuel cell. So it's actually going to help us with the supply base from scaling. And it's going to help us with the customers, because when we endear ourselves to the customers with the fuel cell, they can buy an option also with the BEV for those specific use cases. So we think it's great that we're going to have two flavors, and leading with the fuel cell right now, I think makes perfect sense where it's less crowded in the marketplace.

Steve Girsky: And the final thing that I'd like to say on this is, as we're redesigning this vehicle, our next gen vehicle, we're going to have a high level of commonality between BEV and fuel cell. So it's actually going to help us with the supply base from scaling, and it's going to help us with the customers because when we endure ourselves to the customers with the fuel cell, they can buy an option also with the Bev for those specific use cases. So we think it's great that we're going to have two flavors, and leading with the fuel cell right now I think makes perfect sense. Words let's crowd it in the marketplace.

Speaker Change #123: and...

Speaker Change #124: The final thing that I'd like to say on this is, as we're redesigning this vehicle, our next-gen vehicle, we're going to have a high level of commonality between BEV and fuel cell.

Speaker Change #125: So it's actually going to help us with the supply base from scaling.

Stephen Girsky: 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. Yeah let me just amplify you know in the quarter our average fill was was 38 kilograms.

Speaker Change #126: And it's going to help us with the customers, because when we endear ourselves to the customers with the fuel cell, they can buy an option also with the BEV for those specific use cases. So we think it's great that we're going to have two flavors. And leading with the fuel cell right now, I think, makes perfect sense where it's less crowded in the marketplace.

Steve Girsky: That helps.

Stephen Girsky: So you know just just to do the just to do the math with our fuel economy that translates to roughly 275 miles. So as these says you're getting much longer range for these for these uses for these haulers it's also a much quicker fill you know about 20 minutes or or so or even less. And the final thing that I'd like to say on this is as we're redesigning this vehicle our next gen vehicle we're going to have a high level of commonality between Bev and fuel cell.

Speaker Change #126: That help?

Unknown Executive: Thank you.

Speaker Change #126: [inaudible]

Soei Shin: This does conclude today's question and answer session.

Operator: Thank you. This does conclude today's question and answer session. I would now like to turn the call back to Zoe Shin for any additional or closing remarks.

Speaker Change #127: Thank you.

Soei Shin: I would now like to turn the call back to Soei Shin for any additional or closing remarks. Thank you, operator. We appreciate everyone taking the time to join us this morning, and on behalf of Nikola employees, we thank you.

Speaker Change #127: And this does conclude today's question and answer session. I would now like to turn the call back to Zoe Shin for any additional or closing remarks.

Zoe Shin: Thank you, operator. We appreciate everyone taking the time to join us this morning, and on behalf of the Nikola employees, we thank you. Have a great day.

Zoe Shin: Thank you, Operator. We appreciate everyone taking the time to join us this morning. And on behalf of Nikola employees, we thank you. Have a great day. Bye, everybody.

Soei Shin: Have a great day.

Unknown Executive: Hi, everybody. You may now.

Operator: You may now disconnect.

Operator: You may now disconnect.

Operator: [inaudible]

Stephen Girsky: So it's actually going to help us with the supply base from scaling and it's going to help us with the customers because when we endure ourselves to the customers with the fuel cell they can buy an option also with the Bev for those specific use cases. So we think it's great that we're going to have two flavors and leading with the fuel cell right now I think makes perfect sense words let's crowd it in the marketplace. That helps. Thank you.

Soei Shin: This does conclude today's question and answer session. I would now like to turn the call back to Soei Shin for any additional or closing remarks. Thank you, operator. We appreciate everyone taking the time to join us this morning and on behalf of Nikola employees, we thank you. Have a great day. Hi, everybody. You may now.