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Tesla Semi rival Nikola dubs future fleet as US’ ‘largest air purifiers’ amid hiring ramp
As the Tesla Semi continues to undergo real-world testing in preparation for its initial production in 2019, rival startup company Nikola Motor has claimed that its future fleet will be the United States’ “largest air purifiers,” thanks to their hydrogen fuel cell systems. Nikola’s announcement comes amidst the company’s current initiatives to ramp its hiring activities for its facilities in Arizona.
No stranger to bold declarations on Twitter, Nikola noted that due to its vehicles’ hydrogen fuel cell system, its fleet of trucks would be able to clean the air as they drive across America. In a later tweet, the trucking startup also assured its social media followers that it does not use methane to produce hydrogen. Rather, it utilizes a combination of solar, wind, and hydropower to make the hydrogen needed to power its upcoming fleet.
Why do we like hydrogen so much? The Nikola fleet will be one of the largest air purifiers in America one day. Imagine 500,000 Nikola trucks driving in cities across America sucking in dirty air and emitting nothing but clean water. #emissionsgameover #dieselisdead
— Nikola Corporation (@nikolamotor) October 24, 2018
A following tweet from the company also gave a first look at the fuel cell that would be used for the Nikola One sleeper semi-trailer, as well as the Nikola Two daycab. The trucking startup and budding Tesla Semi rival further noted that a Nikola truck would have two 120 kW systems, which should provide its trucks with a considerable degree of power.
What an awesome Nikola fuel cell. This is the 120kW running through tests. Each truck has 2 X 120 KW systems. Get ready for some big news coming in the following days as promised. This thing rocks and we can't wait for the world to see it in action. pic.twitter.com/rLKx8oF8pM
— Nikola Corporation (@nikolamotor) October 29, 2018
Recent reports have further revealed that Nikola is starting to ramp its hiring as it prepares to start producing its highly-anticipated hydrogen-electric truck. Since moving to the Phoenix area from Utah in July, the company has employed about 70 people in Chandler as it constructs its new headquarters in Phoenix. By the end of the year, Nikola aims to have 100 employees, and by the end of 2019, the trucking startup is seeking to employ about 200 workers.
Nikola Motor chief legal officer Britton Worthen noted in a statement to AZ Central that it expects to break ground on its planned 1 million-square-foot manufacturing plant in Coolidge, AZ, in about two years. At a talk on Friday, the Nikola executive pointed out to Pinal County economic development officials that the upcoming facility would be complete in about five years. Over this time, Nikola also plans to start the expansion of its hydrogen fueling stations, which the company expects will be the ‘largest energy consumer’ in the US within the next ten years.
Nikola Motors is no stranger to bold statements. Earlier this year, the company announced that it would be refunding all the reservations it received for the Nikola One and Nikola Two. Seemingly throwing shade at Tesla, the trucking startup further noted that it does not “use (customers’) money to operate (its) business.” Nikola has declared that it currently has $11 billion in pre-production orders as well.
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- The Nikola One
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- The Nikola One.
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- Credit: Nikola Motor
The Nikola One hydrogen-electric truck.
Over the past few months, though, Nikola started to adopt a more aggressive stance against Tesla. Earlier this year, the company filed a $2 billion lawsuit against the electric car maker, claiming that the Tesla Semi violated its design patents for the Nikola One. In its lawsuit, the trucking startup alleged that the Tesla Semi copied the Nikola One’s wraparound windshield, mid-entry door, front fenders, and the electric truck’s aerodynamic body. Furthermore, the trucking startup claimed that the similar designs of the Semi and the One puts its reputation at risk, since Tesla has had “problems with its batteries starting fires and its autonomous features causing fatal accidents.”
Nikola’s patent lawsuit met a notable roadblock in August, though, as the US Patent Office granted Tesla its own design patents for the Tesla Semi, with the US patent examiner even using the Nikola One as a comparison point for the all-electric long-hauler. Thus, if Nikola chooses to pursue its case against Tesla, it would have to prove that the US patent examiner made a mistake. Such a feat is very challenging to accomplish.
Its legal moves against Tesla aside, Nikola is nonetheless setting the stage of a grand, three-day event in April 2019, which would feature the unveiling of the pre-production models of its hydrogen-electric trucks. A 2.3-megawatt hydrogen fueling station, which would serve as a model for the company’s upcoming network of H2 refilling stations, is also expected to be unveiled.
Tesla stock (NASDAQ: TSLA) closed at an all-time high on Tuesday, jumping over 3 percent during the day and finishing at $489.88.
The price beats the previous record close, which was $479.86.
Shares have had a crazy year, dipping more than 40 percent from the start of the year. The stock then started to recover once again around late April, when its price started to climb back up from the low $200 level.
This week, Tesla started to climb toward its highest levels ever, as it was revealed on Sunday that the company was testing driverless Robotaxis in Austin. The spike in value pushed the company’s valuation to $1.63 trillion.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
It is the seventh-most valuable company on the market currently, trailing Nvidia, Apple, Alphabet (Google), Microsoft, Amazon, and Meta.
Shares closed up $14.57 today, up over 3 percent.
The stock has gone through a lot this year, as previously mentioned. Shares tumbled in Q1 due to CEO Elon Musk’s involvement with the Department of Government Efficiency (DOGE), which pulled his attention away from his companies and left a major overhang on their valuations.
However, things started to rebound halfway through the year, and as the government started to phase out the $7,500 tax credit, demand spiked as consumers tried to take advantage of it.
Q3 deliveries were the highest in company history, and Tesla responded to the loss of the tax credit with the launch of the Model 3 and Model Y Standard.
Additionally, analysts have announced high expectations this week for the company on Wall Street as Robotaxi continues to be the focus. With autonomy within Tesla’s sights, things are moving in the direction of Robotaxi being a major catalyst for growth on the Street in the coming year.
Elon Musk
Tesla needs to come through on this one Robotaxi metric, analyst says
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Tesla needs to come through on this one Robotaxi metric, Mark Delaney of Goldman Sachs says.
Tesla is in the process of rolling out its Robotaxi platform to areas outside of Austin and the California Bay Area. It has plans to launch in five additional cities, including Houston, Dallas, Miami, Las Vegas, and Phoenix.
However, the company’s expansion is not what the focus needs to be, according to Delaney. It’s the speed of deployment.
The analyst said:
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Profitability will come as the Robotaxi fleet expands. Making that money will be dependent on when Tesla can initiate rides in more areas, giving more customers access to the program.
There are some additional things that the company needs to make happen ahead of the major Robotaxi expansion, one of those things is launching driverless rides in Austin, the first city in which it launched the program.
This week, Tesla started testing driverless Robotaxi rides in Austin, as two different Model Y units were spotted with no occupants, a huge step in the company’s plans for the ride-sharing platform.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
CEO Elon Musk has been hoping to remove Safety Monitors from Robotaxis in Austin for several months, first mentioning the plan to have them out by the end of 2025 in September. He confirmed on Sunday that Tesla had officially removed vehicle occupants and started testing truly unsupervised rides.
Although Safety Monitors in Austin have been sitting in the passenger’s seat, they have still had the ability to override things in case of an emergency. After all, the ultimate goal was safety and avoiding any accidents or injuries.
Goldman Sachs reiterated its ‘Neutral’ rating and its $400 price target. Delaney said, “Tesla is making progress with its autonomous technology,” and recent developments make it evident that this is true.
Investor's Corner
Tesla gets bold Robotaxi prediction from Wall Street firm
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Tesla (NASDAQ: TSLA) received a bold Robotaxi prediction from Morgan Stanley, which anticipates a dramatic increase in the size of the company’s autonomous ride-hailing suite in the coming years.
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Percoco dug into the Robotaxi fleet and its expansion in the coming years in his latest note, released on Tuesday. The firm expects Tesla to increase the Robotaxi fleet size to 1,000 vehicles in 2026. However, that’s small-scale compared to what they expect from Tesla in a decade.
Tesla expands Robotaxi app access once again, this time on a global scale
By 2035, Morgan Stanley believes there will be one million Robotaxis on the road across multiple cities, a major jump and a considerable fleet size. We assume this means the fleet of vehicles Tesla will operate internally, and not including passenger-owned vehicles that could be added through software updates.
He also listed three specific catalysts that investors should pay attention to, as these will represent the company being on track to achieve its Robotaxi dreams:
- Opening Robotaxi to the public without a Safety Monitor. Timing is unclear, but it appears that Tesla is getting closer by the day.
- Improvement in safety metrics without the Safety Monitor. Tesla’s ability to improve its safety metrics as it scales miles driven without the Safety Monitor is imperative as it looks to scale in new states and cities in 2026.
- Cybercab start of production, targeted for April 2026. Tesla’s Cybercab is a purpose-built vehicle (no steering wheel or pedals, only two seats) that is expected to be produced through its state-of-the-art unboxed manufacturing process, offering further cost reductions and thus accelerating adoption over time.
Robotaxi stands to be one of Tesla’s most significant revenue contributors, especially as the company plans to continue expanding its ride-hailing service across the world in the coming years.
Its current deployment strategy is controlled and conservative to avoid any drastic and potentially program-ruining incidents.
So far, the program, which is active in Austin and the California Bay Area, has been widely successful.
Tesla stock closes at all-time high on heels of Robotaxi progress
Tesla needs to come through on this one Robotaxi metric, analyst says
