Breaking Down Nikola Motor Company’s $2.3 Billion Big-Rig Boast
Total Assumes All Reservations Will Result in Sales
Seemingly out of nowhere, startup Nikola Motor Company announced it was building and developing a turbine hybrid Class-8 truck, and with its bespoke name, fairly shamelessly riding the coattails of another well-known electric automaker. While many are still skeptical about this company’s long-term prospects, at least it’s generated a fair amount of interest from potential buyers. The company claims it’s received 7,000 reservations for its Nikola One turbine hybrid Class-8 truck, which, if each resulted in a final sale, would total more than $2.3 billion in sales.
However, when you break down the math a little more, it’s not quite as impressive. On the company’s own website, the Nikola One is offered for a $1,500 reservation. Multiplying that by 7,000 comes to $10.5 million, not $2.3 billion. There’s a good likelihood that some of the reservation holders will cancel or lose interest if the trucks don’t meet the deliberately vague “3 to 4 years” on-sale date target.
We honestly wish the company the best. However, we also feel obligated to cut through the PR fluff and break down the real numbers when we feel the true story isn’t being told. As if to silence the critics and cynics, Nikola Motor Company’s Twitter account also sent out some photos showing a collection of prototype battery packs on a warehouse floor. The company claims it will show a fully operational prototype by December 2, 2016.
Source: Nikola Motor Company