Nikola Corporation (NKLA:NSD) is taking steps to improve the efficiency and overall quality of its electric vehicle (EV) production by streamlining its process. The company, which is a manufacturer of commercial EVs, is planning to move its battery manufacturing operations to Arizona by the third quarter of this year.
With this move, Nikola’s truck assembly and fuel cell power module assembly, as well as battery module and pack production and battery-line automation processes, will all be performed under one roof. This will allow the company to streamline its production process and improve overall efficiency.
To ensure a smooth transition, the company will continue manufacturing at its current site in Cypress, California until the second quarter of 2023. This will give the company time to get everything in place for the move to Arizona and to ensure that there are no disruptions to its production process.
In addition to moving its battery manufacturing operations, Nikola also plans to retain a battery engineering unit at a separate facility in California. This unit will focus on developing next-generation battery management system software and modules. This will allow the company to continue to innovate and improve its battery technology, even as it streamlines its production process.
Nikola President and CEO Michael Lohscheller said, “This decision reinforces our commitment to finding ways to optimize our cost structure and create a sustainable business model.”
As for the NKLA stock, analysts are cautiously optimistic about the future of NKLA. At Stock Target Advisor, analysts have given the stock two “Buy” recommendations and three “Hold” recommendations. The average NKLA stock price target of $6.10 implies a potential upside of 141.1% from the current level. This suggests that while there is some risk associated with the stock, there is also significant potential for growth.
Company Profile:
Nikola Corporation operates as a technology innovator and integrator that works to develop energy and transportation solutions. It operates through two business units, Truck, and Energy.
The Truck business unit develops and commercializes battery hydrogen-electric and battery-electric semi-trucks for the trucking sector. The Energy business unit develops and constructs a network of hydrogen fueling stations; and offers BEV charging solutions for its FCEV and BEV customers, as well as other third-party customers.
The company also assembles, integrates, and commissions its vehicles in collaboration with its business partners and suppliers. Nikola Corporation is headquartered in Phoenix, Arizona.
