EV maker Nikola jumps on securing supplies to meet 2022 delivery target

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U.S. Nikola's logo is pictured at an event held to present CNH's new full-electric and Hydrogen fuel-cell battery trucks in partnership with U.S. Nikola event in Turin

By Akash Sriram

(Reuters) -Electric vehicle maker Nikola Corp said on Thursday it had secured sufficient component supplies to meet its delivery target of between 300 and 500 Tre battery electric trucks this year, sending its shares more than 7% higher.

Nikola, which started manufacturing its battery electric vehicles in late March, said it shipped 11 Tre battery electric trucks (BEV) in April, marking its first ever shipment to customers.

The electric-truck maker said it had received supplier commitments to meet its 2022 delivery goal despite geopolitical tensions.

“Nikola delivered several pieces of positive news and secured good proportion of their battery and important component supplies for rest of the year,” D.A. Davidson analyst Michael Shlisky said.

The company said it expects revenue between $15 million and $18 million in the second quarter and delivery of between 30 and 50 trucks. Analysts on average expected second-quarter revenue of $11.5 million, according to Refinitiv.

The company has several signed letters of intent for the purchase of its trucks with potential customers in the past few months, indicating rising interest.

Nikola is also building a hydrogen fuel cell electric semi truck with a range of up to 500 miles and a refuel time of under 20 minutes that would enable it to carry freight over longer distances.

Net loss widened to $152.9 million, or 37 cents per share, in the quarter ended March 31 from $120.2 million, or 31 cents per share, a year earlier.

The company posted revenue in the first quarter of $1.89 million from sales of charging trailers for its Tre battery electric trucks.

(Reporting by Akash Sriram in Bengaluru; Editing by Krishna Chandra Eluri)