Electric truck maker Nikola (NASDAQ:NKLA) is gaining today on news it is producing electric vehicles (EVs) on schedule. NKLA stock is up 5% now, after jumping more than 15% in earlier trading.
So what do you need to know about Nikola today?
Well, on Wednesday, the company announced that it has started manufacturing its Tre battery electric vehicles (BEV) at its new Coolidge, Arizona facility. Nikola expects to deliver between 300 and 500 semi-trucks this year. Deliveries should start in the second quarter in the United States, and in Europe in 2023.
This is a promising development both for EV fans and Nikola investors. After facing a number of challenges in 2020 and 2021, the start of production should serve as a reassurance. It also communicates to investors that some electric vehicle startups are able to navigate ongoing supply chain issues.
NKLA Stock Soars on Production Launch
Today’s news only adds to Nikola’s comeback story. After its founder and previous CEO Trevor Milton was accused of fraud, Nikola has been something of a cautionary tale.
In fact, for a while after the allegations first emerged, the hype around its zero-emissions trucks had faded. Shares still are about 50% off their 52-week high.
But Nikola has worked tirelessly to restore investor confidence. After starting the year with a number of high-profile deals, Nikola delivered a promising fiscal fourth-quarter earnings report last month. The company appears committed to achieving its emissions-free vision. Today’s news only further reinforces that point.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.