Nikola Corp (NKLA), has announced the start of production for its electric semi trucks on March 21.

Nikola shares rose 9% on Thursday, according to this update.

Nikola Corp.’s CEO Mark Russell said that Nikola Corp. is likely to begin in the second half of this year. In 2022, the truckmaker will deliver 300 to 500 Tre-BEV semi-trucks.

Truck sales have not yet been reported by the company.

This week, the EV company hosted its Analyst Day. Bill Peterson (NYSE: JPMorgan) was a JPMorgan analyst who visited Nikolas’ factory to try the Tre BEV and Tre FEV trucks.

Peterson claimed that after his ride, he had a good impression and was impressed by the trucks’ performance and manufacturing ability.

Peterson noted that customers are increasingly interested in FCEV trucks as well as BEVs, and added that the Nikolas hydrogen ecosystem is still growing.

Joseph Spak from RBC was also present at the tour. Spak said that Nikola’s progress is rapid, but execution and risk remain.

Nikola assured analysts that Coolidge’s progress was on track. Nikola stated that the EV company still hopes to begin US deliveries by Q2 2022. Europe will be available in Q3. This year’s guidance calls for 300-500 trucks.

The long-term strategy for Tre FCEV adoption and hydrogen fuel use will continue to include hydrogen infrastructure. NKLA is now seeking to be more capital-efficient and asset-light in its approach to strategic and financial partnership through SPVs for the production and dispensing segment. However, it will continue to have 100% control over the distribution segment to make sure customers get fuel when they need it. Spak explained that NKLA maintains significant industry upside and reduces capital requirements while derisking execution.

Nikola will likely raise $700M more this year, as the company projects its 2023 cash burn to be close to $900M.

Nikola shares have fallen around 10% year-to-date

By Senad Karaahmetovic