Nikola Corp (NASDAQ: NKLA) said on Wednesday it has begun serial production and the initial shipment of its first semi-trucks to customers, a year ahead of bigger rival Tesla Inc’s (NASDAQ: TSLA) plans to do the same.
What Happened: The electric truck maker celebrated the milestone at its Coolidge, Arizona plant with Governor Doug Ducey, fleet customers, and state government officials.
Nikola stuck to its deadline of starting deliveries in the second quarter, sending its shares higher after the bell.
Nikola aims to boost its Coolidge plant's annual capacity to 45,000 by the end of the first quarter of next year.
It has begun the construction of the Phase 2 assembly expansion area at the factory.
See Also: This Tesla Rival Confirms Making Its First Semi Truck, Targets Up To 500 Deliveries This Year
Why It Matters: Despite early hiccups, Nikola has sped past Tesla and other EV makers to deliver zero-emission commercial trucks.
Tesla CEO Elon Musk earlier this month confirmed the EV maker plans to begin semi-truck production next year.
Nikola last month said it expects to deliver only up to 500 electric trucks this year, generate “meaningful revenue” in the second half, and break even in 2024.
Production and deliveries for Tre trucks in Europe are expected to begin next year in the second quarter and third quarter, respectively.
Price Action: Nikola stock closed 2.6% lower at $7.4 a share on Wednesday and was trading 1.7% higher in after-hours.
Photo courtesy: Nikola
