Welcome to Nikola's Investor Day 2022. We are grateful that you're here, and we're excited about this day. I'm Kim Brady, the CFO of Nikola Corporation. On behalf of Team Nikola, I want to thank you for being here in person in Phoenix, Arizona, as well as virtually from all over the world. Over the next four hours, you will hear from the senior leaders of Nikola, starting with our CEO, Mark Russell. Today's presentation has eight segments, beginning with a company introduction, BEV and Tre fuel cell truck, and manufacturing. After the manufacturing segment, we will have a 10-minute break. Following the manufacturing segment, we will hear from our hydrogen fueling ecosystem team. After that, commercial strategy. Then we will have a second break. After the second break, we will talk about regulatory, people, and lastly, business model walkthrough. After each segment, we will hold 5-10 minutes of Q&A before moving on to the next segment. After today's event, we will post the script, the slide, and the replay on our website. We sincerely appreciate your interest in Nikola and the time that you're willing to spend to learn more about our story and our journey. Before we start, I must let you know that we will be making forward-looking statements, including and presenting both GAAP and non-GAAP measures. You can identify forward-looking statements by looking at terms such as intend, expect, anticipate, believe, or may. You should not put undue reliance upon our forward-looking statements. Actual results may vary materially from forward-looking statements, and we do not undertake any obligation to update forward-looking statements. For more information in regards to factors that may cause actual results to differ from forward-looking statements, we encourage you to review our filings with the SEC on our website. With that, we now welcome Mark Russell, our Chief Executive Officer. My job today is to give you a flyover, and then we'll drill you down. You get a chance to work with or hear from many of our key leaders and drill into some detail about what we have going on. We're just gonna start with our values. Everybody has values, of course, but we actually spend a lot of time making sure that everybody here, and we'd like to make everybody else who's a stakeholder understand that we mean this stuff. It's not just words to us. We actually mean it. We are transparent, collaborative, and humble. Those are. I call those our teaming values, whether we're teaming internally or whether we're teaming with our stakeholders. Transparent, we want candor, we want full disclosure, we don't want any hidden agendas or machinations behind the scene. Everything's above board, and everybody's clear and transparent in all their communication. We collaborate, and we do it all with a sense of humility. We are a collaborative company. What we're undertaking can't be done alone. I'll talk a little bit more about that in a minute. Not only internally, but externally in the world, what we're trying to do requires an ecosystem. We have to be very collaborative. A key to that working well is an attitude of humility. Remembering, as down below, that we work outward. We work outward, and we're humble about things, always recognizing that other people matter just as much as we matter, and we treat other people the way we expect to be treated, and that allows us to be highly effective in our collaborations. We go forward, and we go fast. We've proven that already so far. We hope to continue to prove that in the future, that we can go fast. We do that by driving forward, working outward with transparency, collaboration, and humility, as we have discussed, and always acting as if all of us own this business. This is one of the unique companies where that is true top to bottom. We're actually gonna have a short section on HR, on human resources, because normally we wouldn't have that in an investor presentation, but in this case it matters. We'll explain to you why, how everybody here is an owner with extreme prejudice at the top. Everybody, even the people, those of you here in the studio audience, you met people on the factory floor, on the production line, they all have stock. Everybody in the company has some stock. We act as owners. The remaining values up there, quality and safety. We have those there because they're non-negotiable for us, and we are targeting perfection. You know, we're absolutely pursuing perfection when it comes to safety, perfection when it comes to quality. We're not there on the quality front today, and I'm not sure I know anybody on this planet that has achieved quality, but seeking it relentlessly is what we do. We have a larger addressable market than just about any company you're ever gonna come across. I'm gonna drill into this. We'll drill into this a little bit more in detail 'cause we're not just about vehicles, we're about the energy that moves them. We do everything with partners. We're a partnership company because we're trying to change a big chunk of the whole world, a big chunk of the global economy is implicated in this. We cannot do it alone. We absolutely have to have partners. Our products, we will stack up against anybody anywhere. You got to ride in a fuel cell truck this morning. Who drove the battery truck? Did anybody not drive the battery truck? So far, 100% everybody who gets a chance to drives that thing. I would too. We have confidence to let you do that because in spite of some engineers who have reservations about that. We have confidence doing that because these products, we have such confidence in these products. We'll talk more about that and why we do. We have from the beginning said that we're not only going to provide the vehicle, but in the case of the fuel cell vehicle, we're gonna provide the hydrogen because the fueling system only exists in a few places, and it doesn't exist in a format that allows you to fill a commercial vehicle fast. We have a great partnership on that front as well, and a target to make sure that if you buy a truck from us, we will also provide for you the fuel and the infrastructure that you need to fuel that truck on the route that you intend to use it on. That process, we're gonna drill down and explain how that massive titanic undertaking of replacing the current fossil fuel infrastructure around the world with something based on hydrogen. We believe we have a plan to do that in addressable, executable steps and with a partnership system that takes advantage of what we do well and what they do well, including bringing us balance sheets in some cases. Our manufacturing capacity is ahead of everything else we got going in terms of our timeline. As you saw, the plant there is raring to go. If we had the parts, we could be making trucks faster, and that will be our constraint for the foreseeable future. Certainly this year and probably next year, we will make as many trucks as we have parts. Both of our facilities here in Arizona, the one you saw this morning and the one that's in Germany that we unveiled last September, both of those facilities have much more capacity than we will have parts to make trucks. We're acting to make sure that that continues to be the case as we move forward for the next several years. We're excited that you're here at this inflection point. I call it an inflection point because we've been pre-revenue since the basement back in 2015. We're still pre-revenue, but we are now beginning to generate revenue. Where the trucks you saw in the front of the line that have serial numbers, those will be sellable to customers. We'll get them through and commissioned and sent to customers, and we'll get paid starting next quarter. It's an inflection point. We're moving from pre-revenue to revenue starting now. Recently, we strengthened our management team. I'd like to welcome Michael Lohscheller, who is now officially an employee. He's actually been working for us for about a month for free. And you'll see later, he's only working for $1 now. That's a common denominator amongst the top leadership here. He's here now full-time on the team, world-class executive. You can see his bio on the website. We're so thrilled he's here with us as we ramp up mass production in the U.S. and in Europe. We also recently added to our board of directors, Lynn Forester de Rothschild. She is the partner of Jeff Ubben, who stepped off our board because he's now joined the Exxon board, and they just take up all of his time. Plus, I think as the two of them are partners and both represent the same fund, they decided he should go try to change Exxon and Lynn can pick up the work here, which is fine with us. So far, we think Lynn is cooler than Jeff, so we're happy with this, with the trade. We love Jeff, but Lynn is cool. You're gonna see the strong customer momentum we have at this point. We have MOUs and LOIs that cover our production for this year with the battery-electric truck and cover the first year of production and beyond with the fuel cell truck. The customers are really excited about these vehicles. Everybody who sees it loves it. We'll talk more about that. Some of that feedback's coming from the fact that we have both fuel cell and battery trucks in customer fleets, hauling loads on public roads every day now. Our alphas of the fuel cell are so advanced that we've actually put them into customer fleets. That's because the truck that they're based on, the fuel cell truck, is based on the battery truck, and it's so advanced in production that we're confident putting an alpha on a public road with a customer driver and a load. We've done 40 of those pre-series trucks. You saw a few of the last of that 40. They're still in the plant and with commissioning or waiting on a late part. You saw the beginning of the series production coming just on the front of the line. We've recently expanded our partner ecosystem, and I'm gonna drill into this for you for a little bit because what we've done on the partnership front is really powerful just in the last 12-15 months, in the last few quarters. We're very happy and relieved to have the controversy related to our founder, which you're all familiar with, and which resulted in an SEC investigation of the company itself. We have now settled that. All of that is concluded, and it's water under the bridge for us. We're so grateful to have that distraction behind us. Over here in this box on the right, you see a group of names, just some of them that we partnered with. I'm gonna go into more detail on that with the timeline in just a second. You know, the team's gonna talk about the partnership that has the impact of the partnership on the ecosystem and hydrogen, and then we're gonna drill down into the vehicles. I'll just kick that off here in just a second as well. What we're undertaking on the fuel side, on the energy side, and particularly with hydrogen, is kind of breathtaking in its scope. I think that people who understand this are a little bit shell-shocked about what we're trying to do here, and it's been what we've been trying to do for a number of years now. A lot of people just don't, you know, just, "Oh, that's a truck company." Yeah, we're a truck company, but the real shocking part is the fact that we're an energy company, too. In fact, what we're doing on the energy side is much more capital intensive, has broader implications than just vehicles, and is pretty breathtaking in its scope. That's, if you look over here, we're replacing not just vehicle OEMs like Daimler and PACCAR and Volvo and whatever startups are out there. What we're doing, it threatens displacement for the Exxons and the Chevrons, the Shells, the BPs of the world. What we're gonna do in hydrogen will disrupt what they do in fossil fuels. Beyond that, in servicing and supporting vehicles out in the field, people like Ryder and Penske, who specialize in supporting commercial vehicles in the field, we're gonna displace that as well because what we're offering is a bundled lease, freight as a service. You know, we'll give you a truck, we'll give you the fuel, we'll maintain it for you, and you just need a load and a driver, and you're in business. That proposition allows us to address almost three-quarters of a $1 trillion market with what we do. Now, this is a timeline, but it's misleading. If you look at it carefully, all of these boxes relate to 2021 and 2022 to- date, except for the first three over here. Then Bosch is actually would show up multiple times. This is just the latest one for Bosch, where we have agreed to license the fuel cell system so that we can actually manufacture the fuel cell system there in Coolidge. We can do the assembly of the fuel cell power module right there in Coolidge in the future, which will help us drive down costs and shorten that supply chain. Bosch was way back in 2016, 2017. We met with Bosch for the first time in 2016. I met with Bosch in Detroit in 2016, where they said that they shared our vision, and we actually helped each other come up with the vision of big diesel engines that have to go long ways, hauling big heavy loads, whether it's in a truck or on a train or on a ship or a rocket, hydrogen's probably gonna be required. Of course, beyond that, you've got all kinds of heavy industries that require a gaseous thermal source of fuel, natural gas today, that will need hydrogen in the future. The fact that that hydrogen could be made cost-effectively was the huge insight that helped us have the confidence to launch Nikola. The fact that renewable energy prices were coming down rapidly and new solar arrays and wind farms were coming into grids at agreed-upon prices, you know, approaching $0.02 per kWh and now below. Renewable energy is very cost-effective if you can find a way to use it, and we found a way to use it. We found, I think, a way to use it that will change mankind and change the planet forever, going forward. Just in the last five quarters, OGE, pipeline partner in Europe, helping us establish a hydrogen supply network throughout Europe, APS, helping us establish an actual electricity rate schedule from a utility that says you can make unlimited amounts of hydrogen from this. You can use whatever wholesale power you want, and that's what that rate is, by the way. It's unlimited at this point because they realize that what we're gonna do is make hydrogen out of electrons that are going to waste today, mostly. That's why we get a wholesale base power rate for that to make that hydrogen, which will make it very cost-effective as we launch our first hydrogen hub, which the team will tell you about a little bit later. TA continuing up there as a partner to put in some of our first stations. They're really strong in geographies where we need to be. They have spots where we need to be, and they also have big footprints. Among the truck stop operators, they tend to have larger sites. That makes it really convenient for us to come in and retrofit a hydrogen station alongside the diesel for the period of transition. Coming back down here, RIG360, a big consortium of heavy equipment dealers who agreed to become dealers for Nikola. We're gonna drill that down into that. Pablo and his team will drill down into that. That's becoming a brilliant network of service and support for us, people who can support not just the truck, but also the customers on the energy side. They have really a lot of experience in distributed power and on the energy side. Alta Equipment Company, one of the most recent additions to our network in the sense that they became our distributor in the Northeast. They also just now recently agreed, you would've seen the announcement. We did announce that, didn't we? Yeah. Scared me for a second. We announced that they are going to come expand to the West, and they're gonna establish a location here in Arizona, excuse me, to be our distributor and our service and support partner here in our home state. Coming back down to OPAL. OPAL's got world-class experience in building dedicated stations where a customer wants to have a station that will be inside their terminal or their depot. Quinn, another outstanding dealer for us in the critical California market. Gosh, I'm sorry, I got a frog in my throat. Corcentric is a partner for us on leasing and financing. I'm good, thanks. You know, the dealers need partners. Kim will explain to you the transaction we're gonna sell to our dealers. They'll then do creative things with their customers to get trucks in the customer hands. TC Energy, which we're gonna talk a lot about because they are turning out to be a great key to accelerating our infrastructure plans here in North America, get hydrogen where we need it, when we need it, in the quantities we need it, at the cost we need it. Great stuff. You're gonna meet a lot of these folks today. Pretty much everybody on the list you'll get a chance to meet today. You'll hear from most of them as well as us as we drill down into this. One of the critiques that gets thrown at us from time -to -time is that this truck we first started mass production in today is just a rebadged Iveco S-Way. You know, this truck here over here on the left. If you know anything about vehicles and manufacturing vehicles and supply chains, you'll know that it's a massive complex supply chain for vehicles all over the world for every vehicle, and ours is no different. The truck that Iveco introduced in 2019 as the S-Way, which is, by the way, that's the newest diesel truck in the world that I know of. Does anybody know a newer one than that? If you don't know of a newer one, that's got good odds of being the last one, because who knows somebody who's working on a brand-new diesel truck? Nobody. Nope, I don't know of any single project for a new diesel truck anywhere in the world, and the most recent one I know that was introduced was the Iveco S-Way. When we met Iveco in the spring of 2019, and they said, "Maybe we should get together." They said, "By the way, we're about to introduce a brand-new truck, and it may be the last diesel truck that ever gets introduced." That, as a parts bin, you can pull from, because really, you're not gonna innovate tires and wheels and wipers and glass and all these parts. Your truck has almost 10,000 parts. We're actually only working on the things that replace the drivetrain, the controls, the thermal systems, the braking suspension, things like that. That made a lot of sense to us. We can pull from the newest parts bin in the world to make the newest, the best and most dedicated and bespoke zero-emission truck in the world, and that's what we have done. The truck that you got to drive this morning, if you were here in person, that truck is a beautiful bespoke. Yeah, it shares a lot of parts with the S-Way, but everything that matters for a zero-emission truck is new. Everything that matters in there is designed for the purpose. It's purpose-built, and it's an incredible machine. I'd stack it up against any other zero-emission vehicle in the world, and it becomes the base of the fuel cell truck. 'Cause they share even a you know a ton more parts. What's different about the fuel cell truck is the fuel cell, the fuel storage on board, and some of the software integration, some of the thermal. There's obvious differences, but the base platform, it builds on it. That's why that alpha that you got to ride in today on the road for an extended period, and is hauling beer every day with Anheuser-Busch in California, by the way, several of them. That truck is so advanced for its stage. It's an alpha. We'll go through beta later this year, then the gamma, then pre-series and production next year. The team will take you through that. This set of products I would stack up against any other vehicles in the world. Customers agree with us. Mark Keith and Pablo will take you through this in more detail, but the customers are really excited about these vehicles and happy and thrilled to be testing them and having them coming. The hydrogen team will take you through this in more detail about how we have been able to come up with these partnerships, including, as I mentioned, critical ones like TC Energy and OGE in Europe, which help us come up with a model that we think is going to be super successful in getting the hydrogen infrastructure out there and takes advantage of the fact that we are natural partners. The team will go through this and explain it to you, how we just fit hand in glove, marriage made in heaven between us and these folks. What they wanna do and what we wanna do matches up just perfectly to get the hydrogen infrastructure out there and allows us to continue to control the molecule of hydrogen as it comes into the marketplace. With that, I'm gonna turn you over to our illustrious battery electric vehicle team, and they're gonna kick off with a short video. All right. Good afternoon. I'm Michael Erickson, Global Head of Battery Electric Vehicles, here with my technical partner, Lyndon Lie, Global Chief Engineer of Battery Electric Vehicles. As demonstrated in that video montage, it's been a remarkable journey since we've kicked off our partnership with Iveco in 2019 to develop, build, and now launch a purpose-built electric vehicle. Right? We're excited to be here today to share our progress against our commitments, as well as to establish confidence in achieving our planned deliverables and execution. Our business model in the battery electric vehicle business, battery electric vehicles is straightforward. Frankly, we're targeting the day cab segment, notably with short to medium-haul routes and applications up to 350 mi. As an OEM, we will primarily sell directly to our dealer channel partners, who will then in turn sell, finance, or lease the trucks and other services, including a charging infrastructure directly to the fleet customers. We have a strategy both in battery electric vehicles and in the fuel cell team to win at the ports, and we'll highlight that not only with our launch customer, TTSI, but why the port application fits our products well. As well as obviously in these early days as we're driving ZEB transformation to target incentives in states like California and New York and the others that are following. I'll reference that to some degree, but obviously Pablo and Mark Keith will talk about that later today, how we're converting LOIs into orders in that case. Obviously, we will leverage our 100% focus on zero-emission vehicles, right? We don't have a diesel or other ICE installed base or the infrastructure to support it. That's an advantage for us, as well as range. You'll hear a lot about range that we've talked about previously. We are committed to building and delivering 300-500 Tre BEVs in 2022. As the timeline illustrates, right, we've commenced production just earlier this week. We expect our first production deliveries in Q2. In 2023, we will ramp up production in our Coolidge facility with Mark Duchesne and his team, as well as in Ulm, Germany, where we will launch our battery electric vehicle in 2023 as well. A little bit later, Lyndon will highlight some of the architecture and component aspects of our purpose-built vehicle. From a use case perspective, it's notable that routes averaging 300 mi or so align very well with the Tre BEV range and the largest day cab market segment, and I'll dive into some of those details shortly. I referenced ports and drayage, right? That's proven to be a target application, as we've demonstrated with TTSI, largely because of its duty cycle in terms of the range and its payload. Later, Lyndon will talk more about the proof points that we've demonstrated there with TTSI. Obviously, we've cultivated those proof points with customers, including demos and letters of intent that we're driving towards orders. Starting with TTSI in January, we delivered their first vehicles, you saw in the video in December. They actually formally kicked off their pilot testing in January. As you can see in the bottom there, we have several announced demo programs. Be alert that over the next weeks and months, we will be announcing more demos, LOIs, and orders, including some multinational fleet customers. Stay tuned. Okay, how does Nikola Tre BEV differentiate itself versus the competition? Well, from a value proposition standpoint, of course, we started with the Iveco S-Way platform, as Mark talked about, and we have developed a safe and reliable purpose-built electric vehicle, right? The cab over design that we've reintroduced from Europe and the high-tech driver experience, frankly have been lauded by the drivers for its roominess, visibility, maneuverability, and simplicity, quite frankly. You know, the driver feedback is very important to fleet operators as they are evaluating which partners and products that they wanna pursue along their zero-emissions transformation journey. Obviously, the longest range is always a plus, right? With any electric vehicle, there's always some level of range anxiety. Of course, our range has attracted the fleet operators in addition to targeting the largest port segment of the day cab market. Our class-leading power that Lyndon talked about earlier in the call really does offer improved maneuverability and safety when hauling heavy loads. How and where do we compete and win? Have I said range at all today? Did you hear range earlier? Well, here's more credence to the point on range. Tre BEV is targeting 78% of the day cab market that averages 300 mi-320 mi. Now, I wanna make a clarifying point here, right? That's not saying that that's the whole market segment. There's clear opportunity for the 500 mi fuel cell option in that market. But on average, if you break down the segment, 78% drive about 300 mi-320 mi, and 70%-100%, depending on which specific segment and application, cube out before they weigh out, right? So that means the trailer is full before they reach max weight, right? While the competitive set, they are targeting more of 20%-22% of the day cab segment, largely based on range, right? The collective set averages around 200 mi, ranging anywhere from 125 mi-150 mi up to 250 mi. The eCascadia Freightliner, I think, is what they represent. Volvo recently announced up to 275 mi, but we're 300 mi to up to 350 mi. Really to underscore the point, right? Tre BEV's range affords access to nearly 80% of this day cab market, and we will target cube out applications or port applications that are less sensitive to the weight of a battery electric vehicle. One other key point, I'm gonna turn it over to Lyndon here to talk about the purpose-built architecture, the launch update, as well as some key data points from TTSI. To underscore the point even further, the TTSI demos are averaging about 1.81 kWh per mile. That translates into roughly 375 mi of range. In that application, specifically with port. There's just another proof point for you. Lyndon, why don't you take it from here? Thanks, Michael. I'm gonna cover the purpose-built architecture that we're launching on the Tre BEV, and then it feeds over into the fuel cell. You guys that are here in person got to see it this morning. We walked through a lot of this, but let's cover it here. Let's start with the cab. It came from a Iveco, but we modified it. We took the engine cover out. We flattened the floor. We've now opened up that whole space, and the drivers don't feel crowded in there. It's roomy, it's open. There's a lot of feedback from the drivers that they really appreciate that. The old cab overs were very tight and hot, noisy. All that's gone with this truck. Under the cab, we've located our power electronics, DC-DC converters, high voltage distribution modules, pumps, cooling pumps, air compressors, brakes, all the electronics are under the cab, easy to access for the drivers for their daily inspections, for mechanics, for service. Moving back then into the middle of the truck, you saw the batteries today. We've got nine high voltage battery packs. Again, because it's a purpose-built truck, we configured the frame so we can locate those nine in there, and they're all the same size. It's modular. If we want it to go to a six-pack configuration, we can do that as well. The e-Axle we saw in the plant is the first of the two axles in the rear. That's 645 horsepower, 19,000 foot pounds of torque. It's quite a beast. It's more than enough to compete with any diesel truck out there. On the rest of the high voltage system in the back is the inverters, and then we have a tag axle on the back. Really the whole point here is it is purpose-built, and as Michael said, we don't have any of the legacy that we're working around, so we're able to tailor this to our needs, and then it feeds right into the fuel cell truck. What we've done to lead up to this point, and we had our start of production on Monday, but what we did leading up to that was the 40 pre-series tech followed our alpha, beta, gamma engineering. These were the pre-series trucks that Mark built to work the processing out. There's 40 of them that have been built. 18 have been shipped out and are in fleets, in use. A couple are in my fleet is just running mileages for reliability numbers, just building confidence for our customers. Still 22 of them are either in the plant or finalizing here and being sent out over the next month. Mark showed that picture on the bottom. That is one of the trucks that's being charged, and you guys saw the trucks, you rode in 'em, they're real. Just obviously another point for the 40 vehicles, right? What we're using those for is obviously as Lyndon just said, for validation, right? Continued validation and high mileage accumulation. Those are the trucks that we're delivering to our dealers, right? For our dealers to use and train and learn, and sell from. Then those are also the vehicles that are going to the TTSIs, the Saia, and the others for their demo purposes to help build the LOI and order bank. Yeah, just to cover that exact point here, the TTSI demo. We've got two trucks there, as Michael mentioned. They started service beginning of the year. They've actually logged almost 8,000 mi. I just checked the status before I walked in here. It's close to 8,000 combined miles to- date. Very high uptime, high 90s. One of the key points here is they were actually able to run our truck to one of their further depots, 204 mi round trip, which is farther than they've run any other trucks that they've tested so far. They continue to push it and run every day. Very reliable. Like I said, I checked the numbers yesterday, no issues at all, 100% uptime. The other important points here are the driver feedback. We mentioned the roominess. Some other things here is the great visibility. There's no hood in front. The turning radius is outstanding. It's much shorter in the turning radius than a lot of other trucks on the market. It's smooth, it's quiet, and a lot of power and torque. They really appreciate that when they're going up hills and they're passing all the diesel trucks that are slowed down on the right-hand lane, and they're able to go around them. With that, Michael? Thanks, Lynn. Okay, now let's wrap up the battery electric portion of the presentation. As I stated earlier, right, we are committed to building and delivering 300-500 trucks in 2022. We've commenced production starting this week, and as it notes on the gating item, right, we have clear line of sight to and are collectively counter-measuring these gating items. Just to hit them, I know we've communicated this previously and been transparent about it. From a battery cell perspective, we secured enough cells to achieve our 500 trucks in calendar 2022. Currently, BMS chips are the primary gating item. We've secured 300 and are working to increase that quantity to get to our 500 trucks. Then the balance of that would be working with our two battery partners, for their production and output of batteries to achieve 500. Those are the key gating items that we're working through. Cells were confirmed, BMS chips, we're continuing to work, and then we will work collaboratively and collectively, with our battery partners to deliver up to 500 trucks, this year. Again, we're gonna start shipping revenue generating trucks in Q2. We are confident in our ability to execute and achieve our deliverables, and we're hopeful that you share that same sentiment along with us today. With that ends our formal presentation. We can open it up for a few questions. If you use the mic, then the webcast can hear you, hear the question. I told you guys when we were out at the drive site this morning that really there's three main points. Started production, shipping, and generating revenue, and we'll update you in a few months. An investor online would like to know what the recharge time is for the battery electric vehicle. Yeah. At a 350 kW, it's slightly over 2 hours. At 175 kW, and that will be dependent, right? If they use one of our mobile charging trailers at 175 kW charging. Some operators will choose to only put in a 175 kW charging capability 'cause it meets their operational needs, and it's less expensive. That would be about double that, about 200 minutes or 100 or more hours About 175 kW. Another question. Who provides the e-Axle? FPT is our partner for that. Yeah. FPT, who is a division of Iveco, actually, provides that to us. Any question online? Thanks a lot for the time. What's the opportunity medium to longer term on the battery electric vehicle in terms of insourcing more of the componentry or around commonality to lower the total cost of that truck? Oh, great question. I should call on my colleague Bruna here, but we'll answer that. Actually, it's collectively between our sourcing and purchasing team, our engineering team, and manufacturing. Right, we know even in the near term, and actually Kim's gonna talk about this a little bit later, so I'll stay relatively high level in the short term. Of course, right, first and foremost, we've taken a platforming approach. I think Mark did a nice job of highlighting that earlier. We started on the base of Iveco platform. We purpose-built it for a battery electric vehicle, and we're leveraging that platforming into the fuel cell vehicles. We will do the same for our European variants. Then as it relates to getting our cost down, of course, we're gonna look for insourcing. We talked about it in the tour this morning. We used the frame as one classic example. Just the frame that we started with the S-Way that we got from Europe, then we had to redesign it to incorporate the battery electric components into that frame. I think even Mark, as you said, it's the same supplier, but instead of getting it from their European operations, we're actually getting it from their North American operations so that we can leverage cost and lead time and logistics. Of course, we'll continue to do those things, the key systems, battery pack, e-Axle, and even the cab that Mark talked about earlier, that we'll start to in-source some of those components here. More CKD, SKD approach versus full cab getting delivered from Spain to Coolidge. That really is a strategic focus for us. Some of the other people you're not gonna hear from today that are here, I should introduce. This is Bruna, who he was referring to, runs all of our global supply chain. This is Mo Zir. He runs all of our engineering and program teams. They're focused very much on the long term driving down the cost because we know that we have to be a low-cost producer to succeed in the long run. Right now we have a really competitive, awesome product in this space, but it is competitive. A lot of everybody's trying to do an electric truck. In the long run, we're gonna have to compete on a cost basis, so we gotta get the cost down. Some things that have just recently happened that I'd bring to your attention. You would've seen reported just I think in the last 48 hours that LG is going to site their next North American gigafactory. You went past it as you were coming up to the headquarters, those of you who are here. You drove right past it. It's just up the road from us there in Coolidge, and that will be a gigafactory for battery cells in North America. We've known about that for some time and sitting on our holding our tongue for all this time, but we're so thrilled that that is actually now public. You will see more of that as we continue to localize the supply chain and as we scale up the volume and drive down the cost. We won't rest. We're gonna be a low-cost producer. Other questions? Thank you. Can you hear me? Can you tell us how the LOIs turn into purchase orders and maybe how that will be phased through the year? I'll give an example. Then I know Pablo and Mark Keith are gonna talk through that specifically later in their presentation. To use TTSI, our launch company, as one specific example. They had written an LOI for 30 battery electric vehicles and 70 fuel cell vehicles in the time frames that they would be launched, right? As a part of the current California HVIP program, specifically for port and drayage applications, they've already converted 10 of those 30 LOI units into actual POs and orders, and we're continuing that conversation to determine how we will leverage the California HVIP incentives to convert more of those LOIs into orders, not only with TTSI, but with some of the other companies. To continue to use them as a, as an example, the way the LOI is written in that case is at the end of the 90-day demo period, et cetera, et cetera, the demo has gone so well that even though we're really only two-thirds of the way through that program, and there's an opportunity with the HVIP funds here in March, they've taken the step to work collaboratively with us to place those orders for POs. In general, the, all the MOUs or LOIs that we've signed and the, for that matter, the Anheuser-Busch contract, they're all dependent on successful pilots or demonstrations, make sure the truck does what we said it will do. If it meets those specs, then they issue purchase orders against that when we can give them delivery dates, which we now can for the battery truck and make sure we'll be able to do for the fuel cell truck. Largely, what those criteria are related to uptime. Can it deliver the range? Can it deliver the payload? We just demonstrated that we're seeing high 90s% in terms of uptime with these pre-series vehicles. The collective teams have done a great job of putting a good product out on the road, and we have confidence as we go to production. With regards to uptime on, you mentioned 98%. What does it need to be, to- Sorry, say that again. What does the uptime need to be? What are they looking for uptime in a demo fleet like TTSI? On a demo. I'm sorry. Usually, the threshold is 90. I think even on the fuel cell, the threshold is 90, if I'm answering your question. 90 for these pre-series or the fuel cell demos, but usually, it's somewhere around 95 is what we're targeting. As we get into standard operation, it's 95 or higher. In some cases, the floor is 90. For a commercial truck, you know, if it doesn't operate, they don't make money. It's different than passenger vehicles. How many of you own an electric vehicle? Not very many. How many have ever had a problem with your electric vehicle? If you own an electric vehicle and you've had a problem, you know that for capacitor electric vehicles, especially from certain manufacturers, the service and support's not the best. That's why the uptime in that case is sometimes really bad. Those people, if they'd like to get into heavy trucks, they're gonna have a problem if they support and service their vehicles that way because that would not be acceptable. You would lose your customer in that case for a commercial vehicle. That's one of the reasons why these vehicles have to prove their reliability in the pilots, which they are doing. That's also one of the reasons why we have this incredible dealer network that we're putting together that Pablo and the team will take you through. To be clear, obviously, with production vehicles, the uptime expectation is the floor would be 95%, and it's really 90%-99%. I'm talking about in these pre-series demos applications that it's 90%-95% is acceptable. Michael, yesterday you talked a little bit about the modularity of the truck vis-à-vis the competition, how you can go up and down versus them. Can you talk about that a little bit more? I first of all should explain to those online that this question comes from Mr. Stephen Girsky, who's our Chairman. He's present today. I neglected to introduce him. Also, Steve Shindler, who's also a member of our Board, is present today. He's the head of our Audit Committee. Thank you, Steve, for the planted question. Actually, it's a great question, and it's worth sharing here. Lyndon talked about it, and we talked about it for those that are here on site out at the demo track today. With the modular architecture, right, we've got a nine-pack system, and we did that very intentionally as we referenced to have a longest range differentiator versus the competition, and it's the most technically challenging from a thermal and electrical standpoint. As Lyndon said, we can take out three- packs and get to a six-pack variant that is lighter weight for more payload and lesser range to hit some of those other applications in the segment, whether that's in a 6-by-2 type configuration or frankly in a 4-by-2 configuration. We've already outlined what our variants are gonna be to hit a broader range of that market segment from that modularity, both in terms of 6-by-2, 4-by-2 with less packs. To your point on the competition, right, largely what they're doing is they're using their diesel platform, if you will, and they're not purposefully building and packaging the electric systems. They're adding the electric systems and packaging them as best they can in their diesel applications. An example that we've talked about is they typically have a drive shaft, so that packaging becomes difficult to be purpose-built, which is why in some cases they may only be able to put so many packs and so much energy on board and have the limited range that they have. Let's remember, they have an entire installed base of ICE vehicles. They have an entire infrastructure of plants and tooling, and that transition and transformation takes time and money. That underscores the point about us being 100% zero emissions focused on battery electric vehicles and fuel cell and taking a platforming and modularity approach to targeting and hitting those segments. Did I get to the point of your question? Yes. Okay. All right. We can turn it over to the fuel cell team. Thank you. Let's transition to the fuel cell team. I'm gonna catch a flight, everybody. Nice to see you guys. Thanks, Steve. All right. Hi, everybody. I'm Jason Roycht. I'm the Global Head of the Fuel Cell Electric Truck business unit at Nikola. This is my colleague, Christian Appel, the Global Chief Engineer for the fuel cell electric trucks. We are very pleased to show you actually the first of many greatest hits videos on our fuel cell truck. Gives us goosebumps every time. Hopefully, you caught a few things in there, the passion of the team, the execution of what we did so far and a couple good shots of what has occurred just recently in Northern Michigan, in cold weather testing. We think that's a really good way to start this off because what we wanna talk about today is in a little bit more detail our execution, our leveraging, and our innovation around the Tre fuel cell. Specifically, we'll go through where we're at and what we plan to do on the alpha vehicles, the value prop for the Tre fuel cell, as well as the overall program timing, and then we'll wrap it up with an overview of our vehicle plans. With that, I'll turn it over to Christian. Thank you, Jason. Welcome again from my side. We are very excited that everyone in the room here today had the chance to see the vehicles and experience the vehicles live and in action today. We're also very excited to give you this overview now and everyone online as well who's following. I wanna start off with a little bit of a retrospective here, how did we get here for the fuel cell program before we then turn more into what's coming next, until we hit production next year. We started the design and engineering activity after a short concept phase, roughly, in the mid of 2020. We went through a lot of engineering iterations. We did a lot of CAE simulations while we were also building the first battery electric trucks. We utilized a lot of the learnings we already had from engineering the battery trucks, building these trucks, and also starting to test these trucks, commission and test these trucks that went into the design and engineering of these fuel cell trucks. Not only that, but everything that was new that we added in, obviously, the fuel cell systems, the hydrogen storage system, a lot of the controls and so on, we did a lot of testing on bench setups. Before this fuel cell system even went into the truck, we had hours and hours and hours of testing on a bench. We continued that. To- date, we have about over 100,000 hours testing just on the fuel cell stack, for example. We continued it on the e-Axle, which I explained to us this morning, we had installed the same e-Axle, the same inverters that are powering our Tre battery electric vehicle also in these fuel cell alpha prototypes. All of the testing we did on the battery electric truck and all of the testing of this axle and on a system level, all of that was learning and went into this build-up of these alpha trucks. Why I'm explaining that is because the result is a much more mature truck than what you would typically see in this stage of the engineering process. Typically, alpha trucks are more for engineering. They run on test tracks. We did that, and I'll explain that a little bit more. You would rarely see them on the road, not to speak of them going into customer activity, which Jason will talk about later. We started the builds in the second quarter of 2021 with two builds in Ulm and our great partner there, Iveco, in our joint venture facilities. We then continued to build five more of these vehicles with Mark Duchesne's team. It was literally a few days after we moved into the factory last year when we started building these five prototypes. You can see some pictures here of the teams that built those trucks. Then we finally showed one of the first vehicles actually in September last year in Ulm with our partner there. We continued testing essentially throughout the whole second half of last year, as well as for this year. We went on many different test tracks, both in Europe as well as in the United States. You can see here on the bottom right corner, that's fuel cell truck number five. We call him Pinky, because it has a nice wrap for breast cancer awareness. This truck just came back from five and a half weeks of winter testing at the Upper Peninsula in Michigan. We really put this truck to the test, fully loaded 82,000 pounds. We tested, I think, down to about -25 degrees Celsius, snow-packed roads, on ice. We tested the powertrain, the thermal systems, the ADAS systems, and we were, quite frankly, very pleased with the results. Now, is it perfect? Obviously not. That's why we're in an alpha phase. We're doing this to learn. Another big part of this learning experience is what Jason will talk about now, and this is putting these trucks into real-world customer operation. All of this engineering and testing and validation activity allowed us to prepare these trucks to be mature enough to be placed on road in daily customer operation. Now we continue to benefit from that, and all these learnings feed back into what's coming next in terms of the next engineering phases. At that point, I wanna hand over here to my colleague, Jason, to talk a little bit more about the pilot activity. Yeah. Christian Appel is exercising a little bit of humility because he skipped over it. At the bottom of that last slide, you can see some quotes where we showed this alpha truck to an external, independent, very smart engineering person from Detroit who basically gave it kudos as one of the most advanced alphas that he's ever saw. You know, that really is a moment of pride for us, but it's also a test of our execution. What we agreed upon with our partner, Anheuser-Busch, over a year ago was that we were going to design and build this phase together with them and put these trucks into execution and into their network in Southern California. We quickly came to the same realization in the early discussions with TTSI about a year ago to do the same. We were very proud, and it was part of the video that you saw, that we were able to execute on that. All of the work that Christian and the team had done on that previous slide leads up to this point. We like to call it the start of the next phase. Because after we drove those trucks from our headquarters here, short detour to pick up some trailers at Biagi Bros' depot here outside of Phoenix, drove the trucks nonstop for fueling at least to L.A. as one of the first tests on the road, successful. Since that time, we've put over 8,000 mi of real operational road miles in with Anheuser-Busch, and in that have hauled over 1.5 million pounds of their product. A slightly less number in terms of cans of beer, but also significant milestones. Those two trucks are running every day, and every day we are learning more about what we need to do to be successful with Anheuser-Busch and their partner, Biagi Bros. That goes to how the trucks are operated, how they interface with the logistics, how they're fueled, how the drivers interact with them. By the way, we have very similar feedback from those drivers as our colleagues in the battery electric set. We'll talk a little bit more about that too. We're not done with these trucks when we conclude the first pilot with Anheuser-Busch, where we hope to actually get above 10,000 mi of operation in those. We will take those trucks to the Port of L.A., and it'll give us a very, very good experience with our key partner, TTSI, of testing both of the Nikola battery electrics and the Nikola fuel cell electrics. Michael mentioned the split in the LOI we have with TTSI, because there are good fits for both applications in the drayage operation, particularly in Southern California, where the distribution network has sort of expanded out a little bit into the greater L.A. region. We will continue with the pilot there, and we will actually introduce a third truck. Christian and team were so gracious to give us one of the validation trucks over to the customers, partially because we have an extreme desire to get more experience on the road and an extreme pull from our partners to be announced to do additional pilots. We've decided that we will continue that through the end of 2022 with our target to achieve over 50,000 actual road miles. We'll calculate later, depending on the use case, how many pounds of freight that is, and we'll be doing a lot of sharing of that data, not only with our customers and our partners, but also with the state of California and everything else to really prove out that we are viable now with this technology. In fact, we are viable even in the alpha phase, and we'll talk a little bit more about what we wanna do beyond that. Some other key data points. We've had our max payload, gross combined vehicle weight, nearly 82,000 lbs, a little bit short. We're playing a little bit of a game with our partners to try to get that exactly up to the limit and be legal. We talked a little bit about uptime. You know, one of our targets with AB in this is to achieve a greater than 90% uptime, and that accounts for all of the regular updates that we want to do together with these alpha trucks. We're on track for all of those targets and couldn't be happier with the performance of our trucks. Now to talk just a little bit about the value proposition here and what we aim to achieve with the Tre fuel cell. I do wanna use a graphic that was shown from our battery electric, because I wanna come back to the execution and the leverage and the innovation. As Christian will detail in even more greater detail, we are leveraging all of the achievements that you who are here have seen today when you toured the production facility and the production Tre BEVs coming off. We want to and we need to leverage those things for scalability, for quality, for the performance of the product. All of those things that are present on the Tre battery electric are our baseline. Then as we move to the next step and integrate the fuel cell powertrain, you know, the first couple bullet points on there reflect our design targets that we have for this, and they also represent some of the key differentiators for fuel cell electric trucks in the market. These are becoming well known. In fact, we're no longer at the point where we have to explain these to the customers that we have. Most of them already know this. It's important to say, Michael hinted at it, the trucking market is a diverse market. You have multiple use cases, you have multiple load cases, you have multiple range cases. Where we think that we found together with our partners and our customers on the Tre fuel cell specifically is the 500 mi mark, which is really at the maybe the extent of the regional haul market, but we have multiple customers now in multi shift operations, where in one shift they might do 300 mi, and then the next shift they might do 300 mi. These type of applications and the operational efficiency that can be provided by a simple key handover to the next shift is a really good spot for fuel cell technology. Also the refueling time and the refueling method, and we'll talk a little bit more about that in the energy section. We are together with many industry partners implementing a heavy duty high pressure fueling standard. That standard at roughly peak of 10 kg a minute or, so to speak, 75 mi range per minute is what leads us to have refueling times from nozzle in to nozzle out in 10 or 12 minutes, depending on how many kilograms are fueled in. That also allows us to execute public fueling stations, much similar to location and method as used in the diesel. These contribute to not only the advantage of the fuel cell, but the operational efficiency that our customers expect. That also goes hand in hand with one of the other advantages, which is the lower weight total of the fuel cell powertrain. These are all things that are driving our activity right now in the market with the Alphas as we maximize the liquids hauled, the beer hauled, and the heavy haul applications. This makes a real big impact to the TCO. All of this comes with a lot of the advantages that we offer in the bundled lease package, because as good as those advantages are, the problem statement for hydrogen has been and will continue to be, and as we solve it, will be less, but will continue to be the availability of low cost hydrogen fuel where it's necessary. We'll talk extensively about that in the next sessions. What I wanna close on this slide with is more of a handover to Christian. We're very proud of how we've been able to truly integrate the fuel cell powertrain into the Tre electric platform. Together with our approach that Christian will detail of fuel cell powertrain plus battery storage, we believe that we've got a quite competitive approach to this. I'll hand it over to Christian to go into some more detail with that. Thank you, Jason. Now, we've talked already about how we started development of the Tre battery electric truck based on the Iveco S-Way platform, a very modern diesel truck. We did a lot of engineering to make that a purpose-built truck, a purpose-built battery electric truck. We took that and went one step further to make this a highly integrated fuel cell electric powertrain into this platform. This obviously starts with the fuel cell power module, which we have been developing with our partner, Robert Bosch, to fit exactly this application and fit exactly into our truck. We optimized and co-designed all of the interfaces, the interface to the thermal system, which is not a trivial engineering task to actually cool the fuel cell power module. We've engineered the other interfaces, the electrical interfaces, air intake, exhaust, hydrogen supply, as well as the safety interfaces. All of that resulted in a truly integrated fuel cell electric powertrain solution for Tre fuel cell electric truck. We talked about also the benefit of being able to manufacture the system locally, to source the system locally, and also to have the insight and certain control over the engineering activity that goes into this fuel cell power module. We're talking about a unit that consists of two fuel cell stacks with its own balance of plant, meaning both of these systems can run independently from each other. Each of those systems has a power output of 100 kW net end of life. Why am I stressing net and end of life? It's important to talk about what the peak power level is that goes into the truck. If I talk about net power, it means the power already accounted for any of the auxiliaries, the air compressor, and so on, that need to be powered to actually run the fuel cell system. Why do I talk about end of life? We want this truck to perform greatly, not only at its first day of service, but also at the last day of service. At the end of the life of this truck, we wanna still have this great performance that I think all of you experienced today, on the track, at least the ones here in the room. That is how we design this truck and the powertrain and how we size it to ensure that we have consistent performance throughout the life. We also still have two battery packs in this truck, a total of 140 kWh usable. They're located in the center line of the vehicle, and that was a very conscious decision as well, with regards to safety of this truck. We then have five hydrogen tanks, type four composite, 700 bar, pressure vessels. Three of those are located behind the cab, which would be called a backpack. And then we have one tank each on the two saddle locations of the vehicle. They're all connected into one hydrogen fuel rail, and then power and supply the fuel cell system. Lastly here, what you can see the e-Axle, the rear of the vehicle. That's another point where I want to stress how important and beneficial for the development of this fuel cell truck the battery electric truck program was. Because essentially this part from behind the battery packs and these hydrogen tanks that you see to the back, the whole powertrain, the e-Axle inverters, is exactly the same as the battery electric truck. We had a very mature solution we could plant into this truck from the get go. Now, the last aspect I want to explain here on this slide is the safety systems. There's at least some people that have concerns about the safety of hydrogen vehicles, and I can tell you this is one of the safest trucks you'll see. We have designed the safety systems. Even in this alpha phase, we have done two crash tests. We built up crash mules. We did one test to evaluate our engineering structure, to do all of the measurements, and we did a second test to do a verification of our design and a verification of our crash detection system. We have a detection system here that works similar to an airbag system, where in a split second after an impact, you will have the high voltage system being cut off with pyrofuses. You will have that for the battery and the fuel cell system, as well as the low voltage system. The critical parts will be cut off. Some other parts will be powered on to ensure the safety of the vehicle. We also close all the valves of all of these five pressure vessels immediately, so that we come to a safe state of the vehicle in case of an impact right away. I think this is just one aspect I wanna highlight here, what we did to make this really a greatly engineered product from the beginning. Now, going forward, talked a lot about our alpha phase in these trucks. Now, a lot of that will carry over into our production design. We'll be coming up with the beta builds here this year. We'll start them shortly. We're planning to start the beta builds in June this year. You can see here on the right upper corner, first of all, in the front, you see part of the awesome team that we're working with here, this is part of the engineering leadership. Years and years of experience in electric vehicles, hydrogen, fuel cells, trucks, passenger cars, design. In the background, you'll see a teaser of what will be our production design, and this will include the beta vehicles that we'll be building up. This is a full-size model of that design. What we're doing is we're taking everything that we've developed, we take the same cab structure, but now we're developing new panels around it. We elongate the front, and we use that to significantly improve the aerodynamics of this cab. It also allows us to improve our thermal management. There's a lot of changes based on the learnings we had from all of the validation activity, from the pilot activity that went into the optimization of these systems. We're also lightweighting on the way. We had a very conservative design in many areas in terms of the structures, so we can lightweight it going forward. We're continuously optimizing efficiencies, the fuel cell system, and also the drivetrain system. We'll obviously continue everything software, controls, HMI. We'll optimize that as we go. Once we build these beta vehicles, we will start the validation activity there, but then also go into further activities with customers. At this point, I wanna hand over back to my colleague, Jason, to walk through the rest of the activity to SOP. Yeah. Thanks, Christian. Hopefully, you got a little bit of an appreciation for how far we've come and what our next steps are in 2022. We will be very excited to show the world what those trucks look like and what they can do. That will begin in earnest with pretty much the same approach that we've had on the alpha, but we'll take it one step further. We will go with our gamma fleet, which will actually be produced with all of the production intent parts, albeit offline with Mark Duchesne's finest technicians. Hopefully, we'll be able to grab them in the beginning of 2023. That will be how we approach what we call the gamma fleet. That will be a double-digit fleet of trucks that will go into operations with all of our initial lead customers for roughly one quarter or two quarters leading into our launch in Coolidge in the second half of 2023. One thing also to note, these phases in front of us, beta and gamma, will be followed concurrently in Europe. We started the presentation talking about how we approach the alpha phase concurrently with our JV and IVECO partners in Ulm, Germany, as well as in Coolidge. We will be doing that also through the beta phase and the gamma phase, leading up to a start of production at our JV in Ulm to be announced more specifically in the future, but directly following the launch of the Tre fuel cell. That's important to note because, let me go to the last slide. What you see here is sort of our approach, and I wanna come back to those three themes I started with on execution and leverage and innovation. We are really taking a step-by-step approach that has equal parts of all three. That starts with what you've seen and what you've heard from the colleagues on the Tre battery electric. It continues with what we've hopefully given you a good idea about where we're at and where we plan to be on the Tre fuel cell. All of those improvements, leveraging the step before it, leveraging a common platform of a chassis and a body in white, leveraging a common controls approach, leveraging a common connectivity approach, leveraging a common parts bin in a lot of cases, and a common dealership network. Also now, with the Tre fuel cell, also leveraging a global spec. The increase in length that Christian mentioned is taking full advantage of the new legislation in Europe that's put in place for aerodynamic improvement. We will use that same basic design. Here you see it in a render, and shortly this year, you will see it in person. That'll allow us to actually cover the long distance use case in Europe with a sleeper cab that will be integrated into that Tre fuel cell. Those steps are very important. What comes after that is very important, too, but I do wanna highlight that we are focused on the execution and the leverage and not going too far too fast. That being said, what we expect to happen is a continued transformation of the heavy-duty transportation industry, which we believe we will have an extremely competitive portfolio by the time 2024 starts with our Tre day cabs, both in battery and electric, with our business here in North America as well as Europe. We will continue to build and leverage that to go longer distances, to have lighter, vehicles, to continue the TCO value prop with better fuel efficiency, and that will open up that market that Michael showed to near double with the long-haul business. As we go into that, we're also going into it with a step-by-step process to be prepared for that transformation. You know, we call it long haul/sleeper, but we firmly believe that this business is going to continue to transform, and there might not be a need for sleeper cabs by the time we're talking about these. We are making a lot of strategic decisions with our collective engineering team, both the teams under Lyndon and under Christian, and together with the leadership of Mo, and we're happy to have Michael or Russell join us, so we can make the exact smart decisions to future-proof this roadmap here to be ready for all of those innovations as they come, whether it's improved storage on the hydrogen side through liquefied storage, whether it's improved connectivity and data access of the trucks, or whether it's integration with an autonomous partner. These are all things that are on our roadmap. We do want to come back to today and the execution of today and the leverage of the next steps. Hopefully, with all of this, you've got a pretty good feeling for where we stand on our truck development, and we can open it up to some Q&A. Thank you. I would add. I'll have to be on mic. Yeah, just to add some color to the earlier question you asked about, how are we addressing our cost situation by bringing stuff in-house. I wanted to wait till this presentation was over to kinda give you a full picture. Along with my partner, Bruna here, obviously, localization is a big lever. Which comes with scale and the volume as we go forward. To provide that lever, the thought that goes behind it is how many of these parts are common across both the platforms. If you take the rear of the vehicle and back, they're common. The stuff to bring in-house from the very beginning was the software. Software is where our IP is and where our expertise is. We designed and built our own ECUs. We have our own software. We have our own control system strategy. That's why you see these vehicles 18 months apart with two separate propulsion systems in there back to back for a very small team of 500 engineers. That kinda gives you a little idea of where we are. As you go through scale, as you bring more stuff in-house, it kinda gives you the advantage. Speed is our advantage. Being small is our advantage. As we grow, the obvious levers are there 'cause we've been in an industry for a long time, and we know how to bring those in. Michael said earlier that cost is, yes, we are very, very sharply focused. You see, everywhere we went, we've been keeping an eye on how we grow when we need to grow. Hope that answers your question a little bit more. Thank you, Mo. Questions. Christian, go ahead. Yeah. You talk somewhat of fuel efficiency. You mentioned 7.5 mi per kilogram. Can you elaborate on how that can evolve going forward? Sorry, what was the last part? How that can? How can the fuel efficiency evolve? Our base assumption currently and what we're calculating when we're giving out the range values is 7.5 mi per kilogram. This is what we've been also seeing in our testing and have been confirming so far, with everything we're doing in the alpha phase, with what we know will be changes going into production, and a lot of the simulation activity that we're doing as a support as well. Now there's obviously a few things we can do both on the truck side and on the powertrain side to improve that number. On the truck side, you're typically talking about the basic parameters of aerodynamic drag and rolling resistance. What I presented before is one of these steps where we take the existing cab, but we improve it. We make this more aerodynamic shape, and I've not talked about that, but it will also include a new roof, which gives us a huge benefit. This is one of the measures we're already taking now, going from the alpha evolution towards production to improve just the basic resistances that the truck has, right? It's basic physics. There's also certain levels we have in the rolling resistance to further improve, you know, tires to make them more efficient. Now that's the one side I would say the base truck side, right? The other side of it is the powertrain itself. In the powertrain itself, we're mainly looking into three different areas. One is the e-Axle, including the inverters, where even though we're operating at very high values of efficiency, there's always room to improve. That's one area. The next one is a continuous improvement of the efficiency of the fuel cell system, which we're going through that evolution as we speak as well. I mentioned that we had fuel cell systems on the test bench before they even went into the truck. The same way, we already have the next generation of fuel cell systems on the bench right now before they go into the beta trucks, right? We see an improvement of efficiency in these systems compared to the previous pedigree already. The last part is what Mo mentioned, the software part of it, the brains of the vehicle, the energy management. There's a lot we can do specifically in the fuel cell electric truck, and I mentioned that to many, I think, during the ride event this morning. There's a lot we can do in optimization of the operation strategy of the energy management, where we take essentially the available fuel cell power, the available battery power, and we have the vehicle decide with a very smart algorithm in order to optimize both for efficiency and durability, what is the right load point and what is the right load dynamic for these two systems. Those are the three main levers we have and we're using to improve the efficiency of the drivetrain system itself. That, and maybe just one more to add to that, which is tying to why we want so many real-world miles. Not only do we wanna improve the mean fuel efficiency like Christian said, we wanna eliminate the spread, especially on the negative side. Driver to driver or application to application, and that really has to be vetted out in real-world experience with drivers, with routes, with customers. As we learn those variations, we hope to actually improve the net average by decreasing the negative deviations that are caused by the drivers or the routes. Just an additional thing that is leveraging the software that Christian spoke about. Can you comment on cold weather efficiency with the fuel cell versus the battery? Sure. It's a very good question, and I really like answering that question. The reason is that there is a certain disadvantage that a fuel cell system brings compared to a battery electric architecture, and that is the amount of waste heat. We have a lot of heat generated by the fuel cell system. That is why I mentioned earlier that it's more challenging to design the thermal system for the fuel cell electric powertrain as compared to a battery electric powertrain. Not impossible, and I think I can say we solved it and you saw it, but it's more of a challenge. Now, if we're in cold weather conditions, suddenly that turns into a benefit because now we can use the waste heat of the fuel cell system and actually, with a very, you know, well-designed thermal system and thermal management, use this waste heat to heat up the cabin. Suddenly you don't need an extra, you know, high voltage heater to heat your cabin, but you can just use the waste heat of the fuel cell. In that sense, we actually don't lose efficiency in cold weather. Now, there's a caveat. If you cold start up the vehicle, there is certain effects on, the startup efficiency where you will lose a little bit. Once the system itself is warm, which is really quick due to all of that waste heat, the generated heat, from there on, you essentially get an advantage in the fuel cell electric architecture. Next question. Can you explain where you are compared to competitors and how we should think about that? Yeah, that's a really good question. We are watching, as you probably are, how the world is approaching the same things, the other traditional OEMs that are coming in, as well as some new players. I think that we are proud to show you our truck and proud to talk about our design. We do believe we'll be on the leading edge of the truck availability, both in North America and Europe. You know, we try to exercise humility and humbleness because, you know, to be honest with you, we're not so much concentrated on where we stand versus those others. We want them to join us because we have a common adversary here that we intend to replace, you know, in diesel. So together, this helps us with demand of hydrogen, scaling of hydrogen, scaling of fueling systems. All of that being said, we are very proud to show our trucks, and we are very proud of the engineering underneath them, and we intend to them to be very competitive on the market with the performance, with the cost, and with the durability and the support. You know, we mentioned the software a few times. I think we underrepresent the potential for that in our total scheme because there has been a lot of work, and Mo hinted on it, on that electronic architecture, on that connectivity set, and that will be a key differentiator. That's partially why we believe our integrated approach, where we've actually designed ourselves and spec'd ourselves most all of those controllers on that vehicle through a single communication cloud interface, through a single driver interface that also extends to Bluetooth, that also extends to fleet management, that will extend to our dealership network. You know, we are not publicizing this very much as a key advantage, but when we come to market in 2023, after all of the experience we will have had on the battery electric with those same systems, by the way, we believe we will have a very competitive value proposition for the overall cost of ownership and the reliability and durability of these fuel cell trucks. Hopefully I said that in a humble and humility way, but we are very excited for that competition. We're excited for the Earth for that competition, quite frankly. In the Anheuser-Busch process of testing with them, where are areas that you may have fallen short of their expectations? Maybe importantly, where are areas that you exceeded their expectations? Well, like all good customers, they challenge us on cost and timing. I would say the big issue with Anheuser-Busch and similar carriers like them with liquids is they are right now maxing out their payload and their logistics system against the diesel truck. It's fair to say that the majority of the logistics chain in the world is addicted to the energy cost density of diesel because those diesel trucks that they use allow them to haul 50,000 lb or 52,000 lb of freight with an extremely light diesel that we, you know, as much as we are innovating and doing here, we are heavier than a 16,000 lb diesel. We're trying to minimize that gap. I would say that's one of the biggest things that we are challenged on in AB's discussion or the discussion with AB. It's the right thing to challenge because we need to not take extreme big efficiency step backwards if we are going to succeed in this transformation of logistics. That is the biggest area that we are having a healthy challenge on, and can we hit that. In terms of where we're exceeding their expectations, I think it's fair to say, and we were extremely proud, Christian and I and the whole team, to see a brand-new trailer with their brand-new logo being the first one ever hauled. The fact that we were able to deliver these Alpha trucks at this phase, I think it's fair to say we've exceeded their expectation in the quality and the delivery of those trucks, and we hope to maintain that position of exceeding those expectations. The things that we're challenged on are the inherent challenges we have anyways as a company with zero emissions. Hopefully that answered a bit of your question. AB InBev generally deserves a tremendous amount of credit. They years ago set carbon reduction and elimination targets for themselves way ahead of most of the world. They started doing the actual work to determine what it would take to do that. They were one of the very first. They came to us years ago and said, "We see that you're working on a hydrogen fuel cell truck." "Yes, we are." "We've done our research. We know we can't haul these heavy loads of beverages the long distances that we need between breweries and distribution centers without hydrogen. Do you think you can actually build a hydrogen truck, and can you provide the fuel?" We said, "Yes." "Okay. If you can do that, we'll give you our entire fleet." They gave us an 800 truck order. That was part of the reason we were able to launch Nikola, is a customer with vision like that. They have been there every step of the way. This is very difficult work. We are here, you know, a couple of years in advance of everybody else, partly because of them. That challenge, that drive, that vision, that investment, that helped create this future. They deserve a lot of credit for this. Like every good partner, there's an equal challenge and an equal success right now. Tell us more about the fuel cell. It's this very important piece of the equipment. Well, it's an open question. Maybe tell us more. But also, how can you drive down cost and why is it important to actually have the assembly, as I understand it will be done, in Coolidge? Yeah, let's shift from us being the supplier to us being the customer, and let's talk a little bit about the finance and the business side of it, and then Christian will give a little bit of detail on the technical side. One of the important things- that we hope you would recognize in this relationship with Bosch is we're blending the lines between a traditional OEM and a tier one with this license agreement and with this assembly agreement. I like to think of it as a little bit of a groundbreaking deal that's structured between an OEM and a big supplier like Bosch because it is a license for assembly and manufacturing as well as a technical license that we will leverage together going forward. On the license for the assembly and manufacturing, this is really just a simplification of our value chain. We are taking the space that we have next to our fuel cells, doing a just-in-time assembly of the fuel cells with our complete ability to localize and adapt the supply chain where it makes sense for us, and we're very confident that we will be able to move faster than Bosch would have been able to move on their own in North America. In Europe, we're a little bit more standard on that agreement. We will be leveraging their facilities and their assemblies because they are quite close to our JV manufacturing facility in Ulm. That opens up the ability for us to continue to strive for lower tech, lower cost, suppliers where the metal is in some of the other parts and also allows us to leverage Bosch, you know, and we talked about the other competitors on the market, and Bosch is a supplier for certain components in that fuel cell to those others, and we all want that. We want scalability because the more that these components will scale, and this is an important part to understand in fuel cell, fuel cells haven't scaled nearly to the degree we talk about in any other mobility technology. I mean, they're far behind batteries, far behind ECUs, far behind the other main technologies, as everyone can understand. Where fuel cells have scaled, they haven't scaled in the application and in the power that we're talking about here. Tremendous opportunity to put that value chain in place, get it into what we want it to be in terms of supply chain guarantees and cost structure for the North America market as well as the European market. A lot of opportunity there to attack that together in a smart way, you know, not just as us as a OEM to a supplier. This is a true partnership, you know, Tier 0.5, if you will. This is where I'll hand it over to Christian because what also is very important to realize in that is now it's no longer a black box. We are in every single subsystem inside that fuel cell, which is every bit as complicated as what Christian described around it. That helps us in many other cases that are important to us for cost, durability, reliability, warranty, performance, you know, in addition to the variable cost advantages we seek to obtain on the assembly. Maybe you can even highlight a little bit more on that. I think you covered it well. In one minute. We can talk all day about this, sorry. It's really leveraging the strength of, you know, both of us partners in this. The same that Jason explained to you in the sense of control over the commercials and the scaling and so on, it goes on the engineering side. It gives us more control and more insight, and so we are able to innovate. We're able to innovate together. We're able to innovate on our end and just optimize the system even more for our application going forward and thinking also, you know, generations past that. If you can't tell, we're excited about where we're at. Let's take one last question. Let's go online for that. Dylan, what do you got? Has the design of the Nikola Two/next-gen vehicle been finalized, and when will we build the prototype? The first part about that is, no, it hasn't been finalized. We are in a process this year to really finalize those requirements, and that's part of what I had already said about future-proofing what that needs to be, getting the specs right. In terms of the first prototypes, we're not in a position today to give a date for those, but we will shortly. One more question. Is the 500 mi range realistic with the full load? Of course. Yeah. The short answer is yes. It always depends on the driver behavior, on the specific route and the speed profile, the rate profiles. 500 mi is something that we're really realistically seeing with a full load. Again, it depends. We're seeing ranges. In the AB pilot, for example, we're seeing ranges anywhere from, I would say, in our own internal testing, maybe between 6.5 mi per kilogram up to 9 mi per kilogram. So we feel really confident with the 7.5 mi number and the resulting range of 500 mi. All right. Thanks, gentlemen. Let's switch to our global manufacturing superstar, Mark Duchesne. Over to Mark Duchesne. As usual, we hand it over. Thank you. As usual, he nails it. Here's my challenge. I follow all the smart guys. I don't have a partner. You're right about now, you're all wondering when you get to go for a break. The answer is, my partner's not here because I left them all in Coolidge. As you walked out the door, we got back to work building trucks. That's far more important than they do that and I come here and talk to everybody else. As for when you get to go for a break, I have four really fast slides just to make sure you paid attention earlier today, and we will then move on to a break. You already know who I am, we'll move on. Something we didn't talk a lot about this morning is we have two manufacturing facilities. Basically, they are the same thing. The main difference, ours is in an L- shape, and the one in Ulm is in an oval. Same stations, we build the same vehicles. We share technologies back and forth, and we share parts back and forth. It allows us to have two groups giving feedback as we develop a new product. I think, you know, you saw from today, there's a lot of things that we do in manufacturing where we're gonna make constant improvements. I hope what you heard from us today was we do what we say we're going to do. We meet our schedules. We have a passion for quality, and we're still new. We're still developing. We're going to be developing all of those technologies and all of those qualities for many years to come. The difference between us and Ulm is a brownfield plant. It was an existing factory that was converted, beautifully converted to what we have. For those who have been there, you've seen it's gorgeous. I'm a little bit jealous of it. I'll catch up to them very shortly. Purpose-built. You saw both lines. We have one production line capable of building all of our models. We talked earlier about the reason we can do that is that they all start with one, and we keep moving on and adding and improving as we do our models, but a lot of the parts are common. Capacity, we have up to 45,000 units capacity in Coolidge when we finish our phase two of our assembly hall, which we talked about this morning. In Germany, we have a capacity of up to 10,000 BEV or fuel cell vehicles. We've all started our production, which you saw today. We're four stations in. I haven't checked this afternoon. We may be five in, but we started on Monday, and we're progressing on schedule right now. In Ulm, they will start June 2023, building the EU versions of our vehicle. I won't go through all the details on this. The main part of this slide is that, you know, we started July 2020. We issued a schedule for manufacturing and for our factory. Where we are today is within a month of where we said we would be on our schedule. We are keeping the schedule that we have, and we anticipate that we'll continue doing that over the next few years. Our phase I is completed. We have a capacity of 2,400 vehicles per year right now, with a plan of building 300-500 this year and then continuing our ramp up through next year. In quarter one of 2023, we'll have our next phase of construction completed, and we will start to put in the process equipment to allow us to go to an even higher capacity of 20,000 units per year. Then by 2024, we're looking to add an additional weld and paint shop after we do the full analysis and make sure that that's exactly what we wanna do here, but that's part of our localization of bringing a lot of our parts to North America, again, to get greater efficiencies and improve our costs. Also, we talked about the Bosch fuel cell power module that we will add to our assembly. I wanna say that it's very similar to what we just talked about for our vehicles. You know, there's not a lot of people doing this yet. We don't look at Bosch as a supplier of this technology. They're our partner. We call ourselves sister companies or mother/daughter. We both get to build, and we both get to have input. Very similar to what we're doing with the trucks in Ulm. We'll make improvements to the manufacturing processes at twice the rate that either one of us would do alone. There's a huge benefit in that because it's still early, it's still new. What we're gonna see in progression of capability and manufacturability of fuel cells will be twice as much as either one of us would have had. Again, we talked a little bit about Ulm. I won't go over this again. Terrifically located facility has access to all of our European areas. The people there, they've been building trucks for 100 years. They have great experience in truck building. They've been a huge benefit for our team here in Coolidge, to be able to learn from them and be able to actually work together. We talk every day about what we're doing and what we're building. We really get the benefit of having a highly experienced team to complement what we have here in Coolidge. Then again, just to go over why it makes sense for us to build two products or three products on the same line. We talked earlier, you know, 60%-65% of the parts are an overlap of what we're already building with BEV. When we introduce the fuel cell truck, we're only introducing the fuel cell elements. From a manufacturer standpoint, I love when I can put the same part into multiple vehicles because I don't have to add extra people, I don't have to add extra processes, and I don't have to add extra complication. The only thing we're doing is we're not putting in as many batteries, and we're putting in some fuel cell components. From an efficiency standpoint, it's a terrific thing for a manufacturing group. From a process overlap, my production line stays the same, my warehouse stays the same. Welding and painting will stay the same regardless of the models, and then all of our administration capabilities are the same group. We'll have the same managers, the same staff that are working on both projects. We don't have silos of groups building their own product. I think for me, that was short and quick, so I could get you into break. Are there any questions? I heard today one of the reasons why you're not manufacturing more this year is because of the shortage of chips. Is that accurate? Or would you be able to do more trucks if you had the chips, and how many? We're capable right now of building at five jobs a shift, 10 jobs a day. We could ramp up to that very quickly. The chips and the battery cells are what are the limiters for us for this year. Of course, if that changes throughout the year, we have the ability to go faster. We'll drill down into that a little bit in the supply chain discussion. How do you expect the cost to develop? Once you iterate the process of building 40,000 trucks at some point, I'm guessing that the cost per unit will drop significantly. Significantly. Yeah, we will address that as well in the financial discussion, the economies of scale. The easy answer to that is in manufacturing, volume is king. The faster I can go and the more volume I can produce, the more my hours per vehicle drop. All right, let's take a 10-minute break. We'll get started again exactly on the hour. Pacific Time, it's 3:00. We'll get started again in 10 minutes. Bathrooms are just out both doors, drinks in the fridge, snacks in the middle. It's about to get hot. We're good? Go ahead. Okay. Welcome back. It's good that you had your break. We're gonna talk energy now, so that'll be very energetic. I'll spare the bad joke here. My name is Pablo Koziner, and thank you very much for being in the room here with us today or online. We're very excited to continue to talk about the progress we're making at Nikola here. I see the screen that I just shifted here, but not up here. Pablo Koziner, President, Energy and Commercial. Thank you very much. I'm joined by some of my colleagues from the energy side, distinguished colleagues. Carey Mendes, Global Head of Energy Finance. Erik Mason, Global Head of Energy Supply and Trading, and Ryan McGeachie, Global Head of Energy Infrastructure and Commercial Operations. You can see the extensive experience of this team, and it is very reflective of the energy business that we have today and is being built. We have a great team full of a lot of industry experience. What we're gonna talk about here is an area of the business that sometimes people aren't as aware as the motor vehicle part. We look forward to talking to you about how this chapter of the presentation today is how it all comes together. Because at Nikola, one of the things that I really want you to take away is the uniqueness of what we're doing, is that we're a truly integrated solutions company. Because we're not just putting zero-emission vehicles on the road, we are putting them on the road with the infrastructure that is required in order to power them, whether that's electric charging, which we'll talk about in the commercial section, or the hydrogen fueling, together with the support, the maintenance, and financing options. The beauty of this, and where we really distinguish ourselves, is that everybody, whether you're on the energy side or the vehicle side, everybody is focused on the customer, that end user that's gonna use the heavy-duty truck, the Nikola fuel cell or the battery electric vehicle. Everybody here is focused on making that the most economical, safe, reliable, best solution in the marketplace. We can do that because we bring all of these solutions together, whereas other companies typically do it in a fragmented way. You're either a vehicle company or you're an energy company. I'll tell you, it's hard enough to do it when it's integrated. When it's not, that's a tough lift, especially in the early days, as this technology is being brought to market. I'm gonna take a very complex and capital-intensive business, and I'm gonna try and open this session up with a very simple explanation of what we're trying to do. If you think of the energy company of Nikola, if you think of the hydrogen business, our number one focus is to take a hydrogen molecule, the best hydrogen molecule that we can find in terms of total cost of ownership, the cost, the reliability, the supply, where it needs to be, and take that molecule, make sure it gets to a station so that a customer can put it in the truck and use it to power the vehicle. It all has to come together in a way that creates value for that customer. It has to meet that customer's expectations in its cost of operating the vehicle. Simple in concept, complex to execute, and that's why you need a great team, which is what we have here. Our founding, our kind of guiding principles for energy, everything that we're gonna talk about comes back to this list of things that you see here. It starts with safety. That's paramount in what we do. The people that work at Nikola on the energy side have decades of experience understanding how important that is in providing energy into the different markets that consume them. The competitive cost, the reliability of supply, which is a big challenge in the beginning, and we're gonna talk to you about how we're doing that and how we're going to scale that. Carbon intensity, it goes to the quality of the molecule. If you think about how much energy or how do you produce that molecule of hydrogen, that is something that we're very focused on because as we think about carbon intensity of everything that we do, we're on a journey to zero. Because we want a value chain of hydrogen to be low carbon intense in the way that it's produced. Then ultimately, everything that we do has to provide shareholder value. We are good stewards of the investment dollars that shareholders place in our hands to go out and execute a good business. That's top of mind for us as we go about our business. This is why what I'm gonna show you is so important. We think about the hydrogen ecosystem, if you will, in three distinct parts, and that is how it's produced. Now, that doesn't mean that we produce as Nikola the hydrogen molecule ourselves. We can acquire it if we find a producer that can sell it to us at the cost that we need, and certainly at the carbon intensity that meets our expectations or requirements. We can do it together with a partner, which I'll talk about shortly, or we can do it ourselves in time. Now, this is expensive business, so we have to be careful about how we go about it. That's the production, the acquisition of the hydrogen molecule. The second part is you have to take it from production, and you have to transport it to the station. There's an entire logistics business that comes into play, and that drives cost. In the early days, that's primarily done by truck. Eventually, and this is why we're working with very important pipeline companies today, we expect that hydrogen will start to evolve like other energy businesses that will be transported by pipe and lower the overall cost. The last part of it is, well, once you've delivered it has to be dispensed. You have to have locations that are available in the areas where your customers are convenient to them, and they can go and fuel. Whether that be at their own locations, in some cases, which we call behind the fence, or in open public stations, which we're focused on building. Those are the three elements of the business. How is Nikola going about this? Well, partnerships are key. We are a company of partnerships. You've seen that on the truck side, right? We would not be where we are today without partnering with very sophisticated companies that bring lots of capital, lots of experience in everything that they do, and help us bring it all together and move quickly to bring a new solution to market. The energy side is no different. Just to take some examples. On the production side, and I'm gonna talk about North America because we are doing the same in Europe, and I'm gonna use these examples for North America. One large energy company that we have announced a partnership with is TC Energy. TC Energy is a leader in what is called midstream energy business, which is the transportation of energy business, and they have production assets, and they have an aligned view of the hydrogen economy that's to come, and they have a strong interest in leading and participating in this. As we came together, we were able to identify opportunities where we could serve the transportation industry and other industries and help TC Energy serve their own industries, use capital that they have that they want to invest in creating production hubs that we'll talk about, and do deals that we're in the process of looking at, and one that's gonna start here in Arizona to say, "Let's do this work together and help us deliver low-cost hydrogen so that we can put it into the transportation business." WVR is another example where we have a 53-ton per day offtake that we're working towards in a facility in Terre Haute, Indiana, where we have an investment in that company that gives us a low cost per kilogram opportunity that we were able to identify, and we're working to secure that supply going forward in partnership with other companies. If I were to go to the distribution side, or sorry, the station side, we're working with companies that either have existing infrastructure, like TravelCenters of America, where we're partnering to build hydrogen dispensing at stations that already exist, starting with one in Ontario, California, and with other companies like OPAL that have expertise in building open network stations and also doing things behind the fence for customers on their site, and many more coming that we're gonna be very happy to talk about in the future. That is a view of how it all comes together in its most simplistic form, and I'm gonna turn it over to my colleagues to get into a little bit more depth from that view. Ultimately, another last thing I want you to take away before I turn it over to Erik Mason is that the control of this molecule, whether we acquire it, produce it ourselves, et cetera, et cetera, that ultimately Nikola will shepherd that molecule, it will be within our control, and make sure that it is delivered at that right cost, at the right quality, carbon intensity, et cetera, to the station so that we can facilitate a very good total cost of ownership for our customers, which will help everything come together for our business. Okay? Over to you, Erik. Thanks, Pablo, for that great introduction to the business. My name's Erik Mason. I'm the Global Head of Energy Supply and Trading, and I'm excited to talk to you guys a bit more today about our hydrogen supply portfolio that we're bringing together. Our big focus, as Pablo said, is to create the lowest cost and the lowest carbon-intensive hydrogen supply for our customers possible, so that we can make our TCO, our total cost of ownership of the truck, profitable and comparable to diesel, so ultimately we can sell trucks. That's our number one goal, and we've gotta make sure we've got the flow assurance so that these trucks are always up and running. We're gonna talk about that a bit in Ryan's section, how we're gonna be accomplishing that. When we think about hydrogen, we really take what we call a technology agnostic or a color blind approach in looking to build out this hydrogen network and the pathways that we'll use to produce our hydrogen. As I said, the most important thing to us is low cost and low carbon intensity, and there's many pathways to get to that. We aren't here to make decisions on which technologies are the best. We are here to make decisions on how to get the lowest cost, lowest carbon intensity. As we've evolved over time, we've grown a lot of expertise in this area, working with some of the best EPC companies and technology providers together with a pretty amazing team, analytics team and project development team, where we're working together with these partners to build models and gain deep, deep understanding of all the different components and technologies that are involved in building out hydrogen production pathways, whether it's SMR, ATR, electrolysis, pyrolysis. There's many, many ways to produce hydrogen, and we've gained a very deep understanding across all of these. That's important because there's no one solution for any one given location. As we look at I forgot to advance the slide, sorry. As we look at building out this hydrogen production, we wanna make sure that we're using the right technology in the right place that will achieve those goals. As we do that, there's a lot of things to think about. Obviously, the technology, the costs, the regional differences in commodity, feedstock prices, labor costs, state and national, incentives, grants. All of these components come together in our model to look at every specific location that we need to produce or dispense hydrogen, and we choose the solution that is going to give us the lowest cost and the lowest carbon intensity. Part of the decision matrix is also, of course, where to place that hydrogen. As we're looking at where to place hydrogen production or where to take third-party offtake, we want to place that as close as possible to the demand centers that we'll be selling our trucks into. You wanna reduce all costs, which include distribution, so the more hubs that we have across the country, the better placed we are to reduce those costs. We're looking at dozens of locations across the U.S. and Canada right now, where we will start and scale up production. One of the best things Pablo talked about our business is because we have that full value chain, we know where and when and how we're gonna place trucks into the market. We're targeting those areas that have the best incentives, the lowest feedstocks, and those are where we're going to start, and we'll grow from there as incentives develop and as other areas become profitable. That's important because that helps us then to understand how to scale up these hubs in a way that allows us to get very high asset utilization, which again, significantly reduces the cost. We're not just going out and building hubs and building supply, hoping that a market's gonna come to us. We are developing the demand that we are then supplying with the supply. Having that full value chain allows us to be very efficient in the way we deploy this, and partnering with large partners, like TCE and others, allow us to do this and scale it very quickly. We're also building a short-term supply, and that's important because right now we don't have our production hubs. It takes time to build these things. There's a lot of hydrogen out there today, and we've started contracting for some of the supply that we're using to fuel our test vehicles that are going through pilot testing with our customers right now. We'll continue to build out that supply over the years and continue to contract with more and more producers of hydrogen so that we can better optimize our overall asset network. We'll do that by things like cargo swaps. We might have a production hub in one location. Someone's got one somewhere else. They might need to transport hydrogen close to our location. We might need to transport hydrogen close to theirs. Well, we could swap cargos to minimize the transportation between those locations to optimize the portfolio. That's a very simple example of how we'll start to optimize the asset portfolio over time. It also will allow us to flatten out and to optimize our supply and demand. Our demand, which is our trucks coming out, being delivered to customers, will be flowing out of the plant every month, and we'll be bringing on production hubs, whether it's an offtake we're taking or our own production hubs, and they come on in chunks. You can't just bring on the amount that the trucks come out with every day or the amount of trucks we're delivering. Our short-term supply portfolio will allow us to buy and sell excess hydrogen, sell it, or to buy hydrogen where we have shortfalls, again, to smooth that supply and demand and achieve very high asset utilization. These are pretty important concepts to make sure that we're doing this really profitably as we move forward. You know what? When we are looking at the production side of the business, you know, our strategy's really matured and developed over time. I started working with Nikola about three years ago, working for a major energy company, and at that time, we were really focused on on-site production to eliminate the distribution costs, 'cause distribution costs can be quite high. That was the strategy we were really focused on. Over time, you know, and as I joined the company in late 2020 and started to build the team that has the experience to do this, we've brought that experience in to really leverage the knowledge. You know, most people on the team have decades of experience across all commodities, including LNG, for example, which has a lot of similarities and parallels to hydrogen. We can look at our experience with the developing LNG market over the last 10, 15 years and gain a lot of insights into how we can develop this market and avoid pitfalls that we saw as that was developing and understand the risks so that we can do this better and faster. As we are leveraging that experience and working with all these partners, it's really helped us to grow in our understanding and start to develop other options, like developing large hubs and then delivering to spokes. Although originally we were thinking we wanted to eliminate distribution costs, we found that in many cases the cost benefit of scaling to a large hub offsets, you know, the cheaper power prices you can get at a large hub versus a smaller retail location really offsets that distribution cost. Not always, but in many cases. Again, this is the menu of options that we have to look and decide what the best is for each location. If we look at a location and on-site production is the lowest cost, lowest CI, that's what we'll choose. If a large hub and spoke is the best thing to do that we build or we build with a partner, we'll do that. It could be an offtake with a project developer that already has a project that meets our requirements. That's what we'll buy. The bottom line is we're working with dozens and dozens, more than a hundred projects that we've looked at or are looking at and working with to make sure that we're acquiring the best hydrogen and have it available to our customers. I'll just to close off mention TCE again that, you know, Pablo brought up earlier. You know, this is a significant relationship with us. They're, you know, they were a midstream company in the past. They're transitioning now into, you know, an energy company of the future. They're really focused on getting into low-carbon assets, and they have very significant free cash flow, something that we don't have quite yet, but will in the future. They wanna invest this big, you know, this large free cash flow into mega scale assets, and they've got a lot of experience in project managing and building mega scale assets. They bring that experience to us. They bring that investment capital and allow Nikola to benefit from this very low cost of capital, the experience that they bring, and we can bring the demand to underpin the development of these large-scale assets. It allows us to do it with low or no capital and gain the flow of the molecule through that facility into our stations so that we can monetize it for our customers and for our shareholders. It's a great partnership, and we're looking at how we can supplement that and continue to build on it and grow it over time here in Canada and in Europe. Thank you very much. I'm gonna turn it over to Carey, who's gonna talk a bit about the financial side. Great. Thanks, Erik. Carey Mendes, as Erik and Pablo said, Head of Finance for the energy team. What I want to talk to you about today is a bit about how our economic model works within the energy team. First thing I'd lead off by saying it's a very disciplined financial framework we're talking about. As you heard Pablo and Erik talk about discipline, stewardship of our investors' capital, and obviously a very capital light model are essential to making this work. As you see on the right-hand side there, the economics, and as Jason may have talked about, Kim's gonna talk about this a bit later, the base of our customer lease in a way is we sell our truck, and we sell the hydrogen and the service in one bundle lease. That's intended in our financial framework to be competitive with the cost of diesel. The hydrogen cost is one of the biggest parts of that equation. You've got the truck price, the hydrogen price, and service. It's essential here as we think of the production side of producing the hydrogen molecule that we endeavor to keep our costs down to make our base margin as predictable as possible. On the next slide, I'm gonna talk a little bit about the upsides that you as investors can also see from this model. We start off with looking at the production economics. There's a number of different technologies that we're gonna end up using all the way from electrolysis, potentially with renewable electricity powering electrolysis to gain the lowest CI molecule, to potentially seeing methane reforming, SMR with carbon capture underground storage, again, to lower the CI and to lower the cost. A great example is the rate we've negotiated here in Arizona. It's one of the lowest rates for electricity and for power for electrolysis, which gives us, as a first mover, a real competitive advantage in producing the lowest CI electrolysis at the lowest CI hydrogen we can. That's a great example. That's a major part of our cost structure in electrolysis. If you can negotiate something like that, if you've got the connections, if you've got the relationships, if you've got the commercial skills to be able to do that, I think that's a real advantage for our model. Those are two of the key elements of reducing our cost for the production side. What we aim to do in, for investors in that model is really look at a really good infrastructure type return model, 7%-10%. Everything we do in this model is to kind of achieve those base level economics. I'll turn to the next slide, and these are what I call upsides. Some of them are enshrined in legislation right now, and others, I think, are driven by the momentum that we've got in a very unique environment from a regulatory perspective right now. In all my working experience, I've never seen a more conducive, more supportive environment for low CI energy. You saw the infrastructure bill passed by Congress last November, and you see Congress debating right now the Build Back Better bill as well. I'd like to talk about a few incentives that I think add upsides to our economics on the production side. The first is the 45Q qualified carbon capture. So this is for capturing carbon from producing hydrogen, injecting it into storage. Congress has a long-established credit where you can get up to $12-$50 per ton of CO2 captured and sequestered. Now, what does that translate to? That translates to anywhere between $0.07-$0.52 a kilogram, depending on the process you're using, how much CI you take out of the process. Congress is debating an increase to it as well, which could go up to $175. We think it might land around $85. Regardless, it gives you a very significant offset to a production process where you're using, where you're capturing carbon, you're injecting it underground, and Congress and the government have seen it fit to give us an incentive to offset our costs. The other one, which I think is really important, is the producer tax credit. That's being... That's not in place right now, but it's being debated under the Build Back Better program, and we think it actually has broad bipartisan consensus, so we do think it has a good chance eventually of coming into play. That, depending again on how low you can make the carbon intensity of your production process, you can go anywhere from $0.45-$3 a kilogram for reducing your production cost. It's important to think of that top end of the range, 'cause that's where something like electrolysis, which has the potential to lower your CI to the really lowest level possible, getting $3 back on that makes you instantly even more competitive with other fuels, and that's considerable upside, I think, to investors in Nikola. The last one I'll mention then is also something that has been passed, and the DOE is looking at something you may have heard, the $8 billion hub program. The DOE has got a program right now where they're soliciting interest and eventually will solicit applications. $8 billion to be dispersed to hydrogen hub ecosystems that can support the production of hydrogen, the consumption of hydrogen, a literal ecosystem across the country. We are active participants along with many coalitions, and as you can imagine right now with the shortage of sort of people who are providing demand for hydrogen, a lot of these coalitions are coming to Nikola and saying, "Hey, can you participate in our coalition, in our hub participation for these funds?" We think we have an excellent chance with our partners, again, to lower the cost of production by participating in these grants. Again, three regulatory programs, one that's in place, two that are in place right now, one to come, that all offer, again, upside, reducing our cost, and enabling at the end of the day to give you as investors a good margin, but also more importantly, to deliver the lowest cost CI and the lowest cost molecule to our trucks. With that, I'll turn it over to Ryan McGeachie, who's gonna talk about dispensing. Thanks, Carey. Once again, Pablo introduced me, but Ryan McGeachie, Global Head of Energy Infrastructure and Commercial Operations. What that means is for the most part, I'm looking after all midstream and downstream. You're gonna hear some consistent themes, and I'm gonna keep talking about them. Much like production, distribution requires a lot of complex analysis, and this complex analysis has to be based all the way from the production hub through to the station to determine what is the best way for us to transport hydrogen. What we have concluded with this analysis is we likely expect and where we're going to the place right now is we suspect it's gonna be liquid hydrogen transported via cryogenic trailers. That's been a full analysis. We realize that turning hydrogen from its gaseous form to liquid form is not cheap. There's another offsetting cost that make it much more efficient. First and foremost is when you go from liquid or gaseous form to liquid form, you now can transport four times the volume with the same amount of area. There's some cost savings there. You can now transport four times the amount. If that's where you stop that analysis, you might come to one conclusion, but like I said, one of the benefits we have is we're the full value chain. We're taking that same analysis into the station. There's additional benefits from using liquid form in the stations. You once again, because it's smaller, you need less land to build a station. Building a station is also cheaper when you build it as a liquid station. Now we've done that full value chain analysis, and that's where we've come to that conclusion. Another consistent analysis is we believe it's gonna change over time, much like Mark or Erik talked about. We think this is gonna move to a pipeline system at some point in time, not to the extent of the natural gas industry, but we see scenarios where you can transport hydrogen over longer distances for much cheaper. It'll be a game changer for the industry and make it much more efficient. We also believe that working with partners like TC E, we're already working with and helping them move down that path will be very beneficial for us. Another thing that's consistent, it's about working with partners. First and foremost, obviously distribution. We're working with trucking and logistics companies. Where that's really helpful is they have logistical capabilities we have yet to develop. They also have balance sheets. They're willing to hold assets on their balance sheet, and that includes their own trucks as well as the trailers they're gonna pull. Those. They are not cheap. That's not the best use of capital for us, as Pablo alluded to earlier. We wanna be capital light, so by leveraging their expertise, we're gonna be much more efficient. Another benefit to that is we've always told all these distribution companies, "If you wanna sell our molecules and distribute them, it's gonna be with our trucks." They've all been very, very excited about that, so we're excited to make sure that we're gonna be pulling our molecules with our trucks. Another partner we're working with is equipment providers. The one benefit we have there is, you know, we have these truck projections and once again, this goes back to the integrated model. We know how many trucks are gonna be built, how many trucks are gonna be sold. That all translates into number of stations, and number of trade stations translates to number of trailers and trucking requirements we have. We look down that value chain, and we know how many trucks are gonna be required, how many trailers. We start working early on with equipment providers to make sure that when we need that equipment, we're gonna be well in queue, well in advance to make sure when we need those trailers, they're there. We're also gonna make sure that when we do this transportation, we're using all the gamut of our full integrated model. My team is gonna work with Erik and his team. They'll work with Mark and his team to make sure we're integrated through the value chain. If there's a chance to make money, it's gonna be from the production hub to storage and from storage into stations potentially, and maybe even third-party wholesale customers. Each and every space along that chain, there's a chance to optimize value, and Erik alluded to that earlier. That's how we're gonna make money. That's how we're gonna use distribution as a profit center for Nikola. On to dispensing. We're gonna build a vast network of stations. We're gonna build stations greenfield. That's gonna mean new stations, new pieces of land. We're gonna build those with partners. Those partners can be physical partners or even financial partners. We're also really looking at brownfield stations. This is an existing station. We can use partners such as trucking stations like TA, like we're already working with or maybe other station operators. We're looking at CNG. We're looking at existing hydrogen stations, how to partner with them. We're not limiting ourselves to stations. There might be other industrials that wanna get into this space, so let's look at them as partners. Where we have success lately, and I've been really interested by this and really excited, is we develop a partnership model that suits their needs. There's companies who only wanna get a little bit into the hydrogen space. For that, we have a land lease model. We approach these customers and say, "If you don't wanna get into this too deep, you wanna just dip your toe in the water, we'll give you a land lease where we'll pay you a nice stream of cash flows for your land. We'll put a station on your land, and that'll be yours. And you can have the C-store volumes. That's not our business. It gives you the opportunity to grow that business. If you wanna get more into the hydrogen space, if you wanna maybe own the equipment, we have a product called a sale- leaseback model. You can buy the equipment. We'll build it together. We'll do a sale- leaseback. Once we're done the building of the station, you can now have that station. You get new streams of cash flows. You get a return on capital for the amount you invested in that station. We're also gonna share a little bit more because we're a true partner of our truck volume that we're getting into the tank as well as third-party trucks. That's another model that we find, and the way we're able to do this is whatever our customers want, you can pick and choose it. We're not saying, "We have this model or that model." You can have anything in between, though. You can pick anything between the lease model and the full model, and that's how we're having success. We're also having huge success 'cause our customers see the value in the demand that we're gonna bring and how they can jump the time horizon. When we build our stations, we're gonna build modular stations anywhere from 4 tons-8 tons originally with the ability to expand those stations. At 4 tons-8 tons per day, we can fuel anywhere from 105-210 trucks per day. We can grow that over time, and we're doing that right now. We're looking at some of the plans right now. We might build a 4-ton station, but we'll trench for an 8-ton station 'cause there's lots of money to be saved if you do that trenching early on. What else we're gonna do is we're gonna build the most high intensity, the most successful stations out there. We're gonna build them that are the safest, the fastest fueling times. What? A high utilization. We're also gonna do that through the whole value chain. The one way we're gonna do that is we're gonna work with our partners internally. The success of our stations will be how we work internally. The way we're gonna do this is two ways. We're gonna solve that chicken and egg scenario that has plagued this industry, being the mobility hydrogen industry, by doing it one of two ways. We're gonna either sell the trucks first, which you'll hear from next, and when Mark's team has sold those trucks, we're now gonna know where to build that station. We're gonna build that station in that location, so when that station's done and being built, it's already gonna have built demand for that location. The second way is we're gonna build a station in locations that are set for Mark to be successful. What we'll do is we'll do a full analysis of where there's a good TCO model as well as where there's good truck density, and we'll build that truck station there. There's a reason Pablo, I report to him, and Mark reports to him, when I build a station, Pablo's gonna tell Mark, "You make sure to sell trucks there." When Mark sells trucks somewhere, Pablo's gonna tell me, "You make sure you build a station there." That's how it works, and that's a consistent theme here. What we're also gonna do is we're gonna make sure that when we build these stations, we're gonna leverage our early mover advantage. We're gonna take those stations, and we're gonna go and approach third-party customers. We want other people to be successful. We're gonna take this early mover advantage, and by selling to those other OEMs and other trucking companies, the success we're gonna have and the returns we're gonna have are gonna get even greater, and those six stations will be much more successful. Another thing I wanna do is I wanna give you kind of one example of why this will be successful. There's a reason my team sits 10 ft from the team that's selling trucks. The model we have is that integrated model. Here's an example. My team's looking at all truck traffic. We may look at California. You got Highway 99, and you got Highway 5. They come down to one point. Highway 99 has 13,000 trucks a day that run down that highway. Highway 5,000 trucks. That's 18,000 trucks a day that reach that location. We need one half of 1% of that volume to make a full 4-ton station. Check one. We then also look, is there anyone in that location that Mark's team is talking to? Are they talking to three or four customers and have progress to sell them trucks? If the answer to yes is yes to that, check two. We also start looking at who else is in that region, who else is driving trucks down there, who else has distribution centers there. If those are other companies that have ESG targets or making progress on those ESG targets, that's check three. That's a great location to build a station. We'll build a station there, and Mark's team will sell us trucks there. That's the way the integrated model will work, and that's why we'll be successful. The other thing I wanna leave you with is one last thing, and is when I talk to customers, particularly third-party station, the one thing I talk about is when you talk about pipeline company, shopping mall, and office building, the way they become successful is they have an anchor tenant. That's what we will be when we build stations for not only ourselves, but third party. When you build a pipeline or an office building, having an anchor tenant allows you to efficient use of capital and get that base level of business, and then you build a bigger, broader model through that model. That's what we are, and that really sells well when I talk to our third-party customers. With that, I'll turn it over to Carey, and he'll talk about how we'll fund some of these stations. Great. Thanks, Ryan. Good job, Ryan. Just to talk a little bit about the economics now on the dispensing side of the equation. As I mentioned before, we got a really low molecule cost. Hydrogen comes in, low production cost, reduced potentially by incentives. We then also have to bake into the equation the dispensing costs, so building a station, operating a station, much like you would see right now in the fossil fuel industry dispensing costs. Those are two sources, again, of cost that we have in this part of the model. Then the revenues, of course, come from setting the bundle lease price, as I talked about, and potentially and more lucratively also being able to sell to third party, third parties that come to the stations. I think as the industry evolves, our base model really is upfront, we're gonna be servicing our trucks, our customers, but over time, we definitely expect other folks to be coming in and using those stations as well. We come up then with a dispensing margin based on a competitive hydrogen price that we sell at the stations that's very competitive with diesel, which is our main competitive fuel, and then looking, subtracting the cost and coming up with the margin. The last part, I think, which is again, on an incentive side, really interesting to think of as an upside. If you think of an Arizona production center and the state right next to us, California, one of the most progressive states in terms of incentivizing low carbon fuels. They have a program called the Low Carbon Fuel Standard. It's been around for a long time. The volumes of credits as the amount of renewable fuels have really been incentivized by this program, have expanded something like five times over the last 10 years. There's a number of increased low carbon fuels. Hydrogen's gonna be one of them that can attract these credits. Those credits based on the carbon intensity, and that's why it's important based on what the team talked about in lowering the CI, lowering the carbon intensity of the hydrogen molecule. Because you can then take it to your California stations, sell it to our customers there, and attract these credits, which are already enshrined in law, and we think we have a very, very good chance of getting them in states that have that Low Carbon Fuel Standard. Anywhere from $0.94, depending on the technology you're using, all the way again up to $3.64 on the dispensing side. Again, like the PTC and like the 45Q I talked about on the production side, upsides here from Low Carbon Fuel incentives. California also has significant incentives to help you build stations. At the ports, there are several grant programs that we're very actively participating in, again, to reduce the potential capital associated with building these stations. The last thing I'd leave you with, there's also another advocacy effort we're making from a regulatory perspective on a program called the Renewable Fuel Standard. That applies to diesel right now. There's a number of renewable things out there like ethanol, which also attract a credit, as it were from the federal government. Hydrogen's not part of that program right now, but we are advocating for it to become a part of that program, and that can give you, again, another $3 a kilogram of potential value. I think both on the production side and on the dispensing side, there's a very conducive supportive regulatory environment, again, to incentivize folks like us coming in, producing hydrogen, dispensing it to our trucks, and ensuring that our investors and ourselves can make a good margin. Summing it up here in if between all the different things we've talked about, this picture really tells you how I think how the process flows as well as what I talked about in terms of the margin. We have our production SPVs, where we're gonna get the lowest cost production molecule, the lowest CI. Those then will attract a return for investors that invest in them, and as we talked about 7%-10%, thereabout, good infrastructure return. We then have Nikola Energy Supply and Trading sitting in the middle, controlling the molecule, making sure we get a margin from both sides of the equation. We procure that from these facilities, the production cost, and then we sell on our bundle lease into a number of the dispensing SPVs. The margin then, the base margin that we have in our model for Nikola is enhanced on both sides by the production side credits and the incentive credits. With that, I'll turn it over to Pablo, who's gonna cover our final slide. Yeah. I hope you're getting a sense of the level of sophistication that's employed here. This is a very complex business. We're very grateful to have the team, and this is just a part representative of the team that's in place here that's thinking through all of the things that ultimately are important and are gonna make us successful in serving customers in every way that they wanna be served in terms of economics and also the quality of the hydrogen from a carbon intensity model. We spent a lot of time giving you examples in North America. This is a very similar approach in Europe, where the continent is moving very quickly in decarbonization and energy security for the reasons you all know. The money available in places like Germany and other countries, France, Norway, we're seeing more and more in terms of funding the decarbonization. Funding hydrogen represents some very significant opportunities, and more to come in terms of what Nikola is doing in Europe and certainly with our partner at Iveco. We talked about basic economics, production, distribution, stations, incentives. The question is, well, then how are you ultimately gonna price this? How's it gonna work in a total cost of ownership model? What does that even mean? Well, customers, one thing that they're accustomed to is that total cost of ownership in one location isn't the same in a different one. If you operate in California, there's a certain cost that you're used to in terms of operation, fuel, taxes and everything else, and that is different from doing the same in other parts of the country like Oklahoma. Well, the hydrogen business will be no different because ultimately your cost of production of the hydrogen drive the cost of fuel for the vehicles and work their way into the total cost of ownership model. I won't get into the detail of what the graphic behind me represents, but it's a regional pricing model for diesel fuel. We pay a lot of attention to that because in the early day of this business, when customers are looking at a hydrogen fuel cell truck and a lease, they say, "Well, how do I know what this means to me in my business? What do I have to compare it to?" What do you think they do? They look at their current operational costs, they look at diesel, and they say, "Hey, if I'm in the ballpark here, then we've got a good business. If I'm way outside of that, then unless there's a regulatory requirement for me to accelerate the change or a customer that's willing to pay more, then I'm not gonna move as fast." We pay a lot of attention to what does it cost to operate a business in different parts of a country, and then how do we ultimately have to price in order to be competitive. As we get into pricing, and I'll stop there, because Kim is gonna go into a little bit more detail on the way we're going to be structured leasing. I just wanna convey to you this is the way that we think about it. It's not just this one flat price. There's not a flat cost. There will be regional differences, but that's okay because customers are used to that today. That's what they would expect. Why don't we take any questions that you may have? I'll invite the team up here and all right. Can you provide more detail around that 2022 second half hub that you guys are gonna be starting work on? Just the ultimate size of that hub, where is the hydrogen going, who's the ultimate customer, what's the ultimate capacity of that hub? Just more detail around that. Sure. Erik, why don't you Sure. Kick it off? We're gonna be starting that hub off using electrolyzers. We've got, you know, a bunch of electrolyzers on order starting to deliver already, from Nel that are gonna be going into this hub. That's gonna allow us to get this hub to market very quickly. We're gonna be scaling that hub over time. You know, right now the plan is about, you know, once we have our first train come online, about every three or four months after that, we're gonna have another train coming online, again, to scale in a way that allows us to keep high asset utilization with the trucks that we're delivering into the market. That hydrogen's primarily gonna be going into California, at least at first. You know, for the first year or two, we're gonna be trying to put it all into California because we wanna capture that LCFS value. If incentives grow in other places, then, you know, we'll look at that. Yeah. I'm sorry. Just in terms- Anyways, yeah. We'll be scaling that up over time, you know, to about five or six times what we originally start off with. Just in terms of 2023, like, what's the total kg that you guys are gonna be producing from that hub? Like, what's the capacity size? We'll start probably with about 30 tons a day and then grow from there. 30 tons is the electrolyzer order. Yeah. At this point. It's this is a very important part in terms of how these hubs ultimately scale up. Certainly if the demand is there, I mean, we're targeting very large hubs. We think at scale, they could be anywhere between 100 tons-150 tons. It'll really be determined by the demand and what we see in terms of opportunity. But it's very important to move at the pace of the demand and the trucks that are put into the marketplace. Because as we build out, we expect to gain a lot of efficiency in innovation and electrolyzer efficiency, for example. There's a lot of investment today in the industry, in the storage tanks and liquefaction. We expect those costs to go down. We expect quality to go up. We wanna be very careful in terms of how we plan and bring these things to market, because we always wanna be capturing the most efficient, most innovative, latest technology that also helps us reduce our cost in time. Employing it at the optimal scale. We've done a lot of analysis for different technologies to know what is the lowest cost for an economy of scale, you know, what size of hub. At first, you know, it's speed to market. We've got trucks that are gonna be coming. We've got to get to market, you know, and we need to get there fast. We need to have our supply ready for that. As we continue to build and grow, we'll build subsequent phases using different technologies, sometimes in the same location, that will capture efficiencies between technologies, efficiencies of, you know, the, like I talked about, a specific location and efficiencies of the size, balancing that against how fast can you ramp up utilization and choosing the right size to utilization scenario. I just wanna add one more thing. We didn't talk about this enough, but Erik's team is working on procuring hydrogen from smaller scale production. This is not sourcing hydrogen exclusively from large hubs. We are looking for opportunities to buy hydrogen at much smaller levels of production, and we're happy to do that if the cost makes sense for the business. It's a great way to arbitrage and move quickly in order to be able to get hydrogen where you need it. Stay tuned. 2 tons per day. They can't hear you online. Oh, sorry. There's 32 tons per day. Are those the ultimate customer, is that going to be the AB relationship in California, or are there other offtakers and consumers in mind? Like, who's the ultimate consumer of those 32 tons? We think about it more in location. We'll talk about customers in a second, but certainly AB. There are other customers that we've talked about or announced letters of intent that will be operating in California. Those need to be served. The way we look at it from the energy side is we think about where's the volume, regardless of who that specific customer is, how much is required and to what location. Certainly AB, that is job number one in terms of a customer that is now currently demoing trucks and that demo is going well, so we expect good things to follow. There are others that we're talking to. Some we've talked publicly about and others we have not. Ultimately the reference target being the diesel price, right? Green hydrogen being the cheapest or eligible, not only the cheapest, but also eligible for the greatest amount of subsidy. Can you give us some guesstimate of right now, though obviously it's a moving target, it'll go lower over time, but right now, what do you estimate is your cost or what the price of that green hydrogen at the pump will be translated to, for someone like me, that's not thinking in terms of kilograms or kilowatt hours, but thinking in terms of price per gallon. Some guesstimate of what the price per gallon of green hydrogen will be at the pump for you, and then if you apply the subsidy of obviously the best case scenario being the $3.64, if I take that out of, again, translated into some gallon number. We're Hang on. Yeah. Kim's gonna drill into that. Yeah, Kim will get into that. If you get him going on this. Yeah. Sure He'll never stop. Well, I mean, it's a bit of a sensitive. Obviously you see what the It's a bit of a sensitive topic, too. Sure you know, I mean, there's only so much we can share on that right now. There's a lot of competitive forces at play here. We'll talk about that a bit later. What did I tell you? What did I you? What did I tell you? Okay. That's the goal, right? That's what we, I think Of course. We'll drill into that. I promise. It's the diesel parity. I promise we will drill into that for you. By the way, just remember, a kilo of hydrogen is the energy equivalent of a gallon of diesel. It's almost there. The kilo is the same. Okay. Yeah. Kilo is the same as gallon price. Since I didn't get an answer on that question, let me ask one last question. If I listen to all of this, right? Ultimately, the trucks are important. You guys are trying to build trucks, and that's what the company is understood to be. But over time, I mean, to be honest, it almost feels like the energy market at some point could be bigger than the trucks. Yes. It is. I like to think of us as an energy company that happens to sell trucks. I'm glad the manufacturing guys aren't here because ultimately what that implies is that you're selling trucks the way people sell. I don't know, I mean, just to use a different analogy, people sell hardware in order to sell software. Ultimately, the selling trucks is a way of being able to sell into a much larger addressable market, which is energy. Well, the energy market that we're creating here with hydrogen is bigger than trucks. It's bigger than commercial transportation. You know it's hydrogen will be an important energy carrier for the whole economy of the future. All right, that's all we have time for. Can I just add one thing there? What I'd also add though is we're not only gonna create an energy company, we wanna leverage our trucks to create an energy company that fuels our trucks, but then a bigger energy company that fuels other trucks, other industries, and grow it into a bigger. It's how do you leverage it to be something bigger? It's exactly what we're talking about. Exactly. Yeah. All right. Let's transition to customers. Thanks, everyone. Great job, team. Mark Keith- That's all. He's gonna come up here. While he's coming up here, let's cue the video of our launch customer for the Midwest, PGT. I'll let you do it. Would I recommend Nikola? I would absolutely recommend Nikola to any trucking company. My experience so far working with Nikola, and especially since we've placed the order, has been fantastic. The trust and the confidence that I have in Mark and his team really is the deciding factor for us, and it's why we made the decision to order 100 Nikola units. Everything I ask for, they respond to without hesitation. What I mean by that is, we are in the process of convincing our customers and our drivers and our company to accept this new technology and to embrace it with us. I've asked many times for Nikola to help support my efforts to do that, and they've always been there for that, including making presentations to my customers about the quality of the vehicle, the effects of the vehicle on the environment, and all the benefits this truck will provide for PGT Trucking as well as them. Once we announced that we had ordered 100 of these trucks from Nikola, the buzz around PGT was pretty incredible. People were asking questions. People wanted to understand better how this truck would work, how it would benefit PGT Trucking, how it would benefit the environment. They embraced the concept of PGT operating these trucks for today and the future. In addition to that, the positioning of PGT to order these trucks and to have them start to arrive at PGT has created an opportunity for us to hire the kind of people we'll need in the future. In other words, the idea of having a Nikola unit in our company has helped us attract talent. Okay, Pablo Koziner again with my colleague Mark Keith, who is the Global Head of Business Development and Service. Just want to address a point here that while we're focused, you just heard from the energy team. I would never think about Nikola as a company that is just trying to use a truck to source demand for energy, because we intend to create a lot of value with the truck and be profitable on the truck, just like other truck OEMs have to that don't have an energy company. The industry will move in concert. That business has to be profitable on its own. We think that by integrating the energy piece and the maintenance and all the services, we have an advantage that benefits the customer in that there is a true integrated solution that is being created here. This work is extremely complex and difficult to move this all together and make it work. Like I said before, if you're doing this with independent companies, that's a very heavy lift. It's hard enough for us. When we do this together as a team, this momentum that we're gaining, this ability to plan the sale of trucks in certain regions and have that infrastructure in place, and to that, I would add the dealer network, so that trucks can be maintained and assure high uptime for our customers, that's something very significant. That is something that I encourage you to really look into here. With that, I wanna emphasize, and I'll talk about it some more, this dealer network, how important it is for this business, because uptime is everything in this business. There are some things that are going to change here, right? The type of fuel, certainly the maintenance should improve. There's a lot of digital capability with these vehicles that are going to further enhance productivity. Those things will change for the better. But certain things don't change. And what doesn't change is it has to work reliably, uptime is everything, and it has to provide value for those that own these assets. And that's what we're highly focused on delivering. How will we go to market? We'll range from, and this is the way that Nikola views the market, we will sell vehicles, and our battery electric vehicle will primarily be sold through the dealer channel, which means that we produce the truck, we sell it to the dealers, the dealers then go to the market and sell the truck to customers. Oftentimes, what you will see is they will wrap it with other services, which could be financing, which could be coordinated through Nikola or through their own, and service contracts, and very importantly, and we'll talk about this a little bit more, power solutions. This is why we picked the dealers that we did, and we're very fortunate that they have great capability here. We'll talk about that some more in a second. In the other side of that, kind of in the other extreme side of that, you have the bundled lease led by Nikola. This is how we intend to market the fuel cell truck, which is the vehicle through a financing that includes maintenance and the fuel. That's paramount for the hydrogen fuel cell vehicle, but that doesn't mean that we can't do some of that for the battery electric truck. Just so it's not always cut and dried, it's not only the BEV direct. And in some cases, for example, we have potential customers that have called us and say, "Hey, we produce our own hydrogen today. We may be in that business, but we wanna move it with a fuel cell vehicle. Would you be willing to sell us the fuel cell vehicle, maybe with maintenance?" Sure. In certain cases, that could make sense. It's all about the customer. That's what we wake up thinking about because we know if we do right by them, we'll have a great business. I'll turn it over to Mark to expand on that. All right. Thanks, Pablo. Pablo already introduced me, Mark Heath, Global Head of Service and Sales. I know it's late in the afternoon, bear with me, but hopefully we get some excitement going here with some customers. Pablo talked about how we might go to market commercially, right, with the sale or the bundled lease. If we take one level dive beneath that, and you see up here, how do we start to build interest for these trucks, right, and what we're doing, the whole integrated solution. First, we've talked about the products, right? In our focus market. We are in the Class 8 market only. We're looking at local and regional day cabs with the battery, really targeting those markets that are less than truckload. The fuel cell comes online, little bit longer range, going up to that more regional type carrier. Timing, you see the timing you heard from both Jason and Michael about that. We're hitting the BEV now. It will be launching to commerce this year. Fuel cell coming on in 2023. You see some of the other dates there. One of the things that we do as we start to build interest, how do we really go about that in building the sales funnel? I'm gonna tell you, I'm gonna share with you what our funnel looks like. First, really is everything you guys have done today. Bring them here. It's the best sales pitch ever, is seeing and touching not only the product, but our manufacturing facility. When they go through and see a factory, it's not just the factory and the processes that are going on, it's the people there, it's their passion, it's their excitement, it's that focus on quality. Getting a ride in the truck for sure. We're participating in marketing events, right? We just came back from TMC in Orlando earlier, where we had both a truck and a mobile charger there. We will be at the Advanced Clean Trucking Exposition in Long Beach coming up. We'll actually have both trucks there, as well as a trailer and a mobile charger there. We will be doing ride-alongs on both trucks at that event. If you go even further, you've probably heard about this from Michael and Jason, getting trucks in both our dealer hands and our customer hands, right? We have the two battery trucks running with TTSI. We have the two Alpha fuel cell trucks running with AB. We have about four or five pilots we are actively planning right now and plan to launch in the next 2 to 3 weeks. That matters. We hear from customers all the time when they drive that truck, when they feel it, when they feel the turning radius. Also when they put big people in there, I don't know the tallest in this room since you're all sitting down. Mark's a pretty tall guy. We had a 6.7'. Yeah, we gotta get Michael in there. 6.7's the record I've personally witnessed of them standing up and kinda going, "Wow, there's a lot of room in this thing." You heard from our customer, Gregg Troian, right? I mean, it is attracting a new generation of drivers. TTSI, we talked to him yesterday, the CEO. He said the drivers are standing in line to drive it when it pulls in the port. It just creates all this attention. Really the truck itself, feeling the solution, feeling the support of our dealer network and service team is how we're building interest. That ultimately leads to we were in an LOI phase. We're still there with the fuel cell, but we are moving into the order phase, and I'm gonna share some of that with you. One of the next biggest ways we're building orders, and you'll hear a little bit more about this from Britton, is the incentive programs, right? The California HVIP program, and hopefully some people have heard of that, right? It's the vehicle incentive program that's going and you can get between $120,000 and $150,000 per truck. You do not have to scrap a truck like some of the other programs. It needs to run in California for three years. Each OEM can get up to 100 vouchers. Those vouchers are good for 18 months. Each customer can get up to 30, or if you're a drayage customer, you can get up to 50. We are currently chasing that. Our truck was approved for HVIP earlier. We are up to. This is how fast it's changing. That number there, 20, is now 22 as of today. We now have 22 vouchers where we have POs in hand for those, and we have another pipeline we're working on that we expect to complete next week of up to another 116. We're trying to max out our voucher capture there. We are working through, and you'll hear this a little bit more from Britton, in the New York TVIP program, another vehicle voucher program in New York, where we'll be one of the early trucks on that. That is a scrap program. It could give up to $150,000, but you do need to take a truck out. Leveraging these to take a truck out of service, an old diesel truck, we're leveraging these to build demand. If you look at the BEV, the battery electric vehicle, really again, I touched on it, successful demos, trucks to dealers and customers, activating as much as possible the voucher program. Then I'll talk a little bit about the charging solutions to make sure we can get this accelerated. If you look at where we're at, we have 425 under LOI or MOU right now. Then that includes a couple of those that are in the PO program. You saw that earlier, TTSI and Heniff that are in the H2 voucher program. When we look at the rest of our pipeline, it's up on the top right there, we kinda look at things two ways. We're not talking about the whole pipeline, which is hundreds and hundreds of trucks. We're having discussions every day, our sales and BD teams are. If we categorize those customers as greater than 85% chance of closing, you see we've got 114 customers in that area, 126 trucks. We got another tranche that's in kinda what we would call high interest, right? They're very, very interested. They have ESG goals. They wanna find some good routes. We're working with them on that. You combine only the high potential trucks, 126, with the 425, if we get the demos, convert as many of those, we feel like we have a really good shot of 300-500 production trucks shipped to customers this year on the BEV. On the fuel cell, bit of a longer pipe, right? We've talked about when it's coming online. We've got the alpha trucks running now. We had AB as kinda that anchor tenant, as Ryan mentioned, for the number of trucks. We have since added LOIs with Covenant, TTSI, PGT, who you heard from Greg. These are early-day partner customers. We're already working through them. The go-to-market for this a little different because, as you heard from the energy team, we need to make sure we're bringing that fueling infrastructure there. One example, the TA partnership he mentioned of a fueling station, that's in Ontario, California. We are doing a very localized set of discussions there with not only the top 25 fleet customers, national fleet customers that run in that area, but also the local DCs that are within a couple of miles of there. You think right up the road, Fontana's there. There's lots of other DC pull to that station. 4-ton-a-day station, we need a few hundred trucks to fill that up every day. We feel like we got a really good shot to get that done. We will be following that regional rollout strategy that Ryan and the energy team talked about. We also have some other lead customers where we may have to have that two-way dialogue, but super excited about where this one's going. We got another 700 that are very, very active there, so we're pretty bullish on where we'll be when we start production in 2023 on the fuel cell. One of the big things we talk about, and I know you heard a lot about range on the BEV, right? One of the other things we talk about where it's not just range. Yes, we went, we wanted to get that maximum range, but one of the things we hear from our customers that they like about the truck, even our early-day pilots, even our dealers that are leveraging them, is it's not just about the range. Hey, if the thing can run 300 mi a day, great, but I only run it for 120 mi a day. Guess what that does? That gives you built-in resiliency in that truck. Now it only needs to charge every two days instead of needing to find a home to charge every day, like some of our other competitors in the area might have to do. Even with that in mind, we need to address two things. It's not any good to have a truck if you can't have charging. Similar to what you heard on the hydrogen, and you see it on the right, we have the mobile fueling solutions there. Our battery and infrastructure solutions team led by Andy Christian, we have a whole battery infrastructure team on the business development side, and we've developed this mobile charging trailer, and what it is a 175 kW charger in a trailer. It can run either off remote like a diesel generator set, admittedly, zero emissions stuff running with diesel. You can run it on renewable diesel. But remember, we came up with this when we were testing in very remote locations, and so there was no utility infrastructure there, zero. The team developed that, and now we are selling these. Each of our dealers is getting one of these. There's demand pull for us because it's on wheels, you don't have to wait for the permit to come like fixed infrastructure. We can actually pull this up, connect it to 480 three-phase power already at the station, and have a charging solution for these trucks rolling out immediately. It's really helping us accelerate to the market instead of, "Hey, I bought two trucks, now I need to wait 12 or 18 months to get my charger put in place." Really good solution for us there. We're not stopping there. We also realize there needs to be long-term infrastructure solutions as well. Andy and his team are working with our suppliers on the charger to secure strategic demand, right? The charger can be a constraint to rolling things out, so we're working very closely with Tritium to make sure we're forecasting and consolidating our dealer demand. As Pablo will talk to you about, a lot of these folks have power solutions experience. We're gonna help them with a good source of charger demand, and we're working with them to develop a playbook for infrastructure solutions in each of their regions. We're also working with other strategic infrastructure partners in those regions that can help build that infrastructure out. That's kinda where we're headed on that. I'll turn it back to Pablo for some dealer discussion. Thanks, Mark. Thanks. No, I'm really glad that you brought up the energy resiliency part for the trucks because we tend to think about, well, how many miles can I get on this vehicle based on the charge? We're spending a lot of time working with customers in the early days and internally to say, "Well, what is the value of that energy on the vehicle?" With shorter distances, you could get into a practice where you charge less times, which means you have to spend less money on infrastructure, which is very significant to that total cost of ownership. You may also be able to manage your charging when it's most optimal based on utility rates. Not to mention, if the utility were to go out, if that's where a customer is drawing the power from, what happens if the power goes out? Well, if you have excess energy on board, that doesn't shut down your operations. That is very important. Nobody's talking about that. I guarantee you, please look into how, you know, that when you do your own analysis, this is a very significant part of the truck business, is that energy resiliency, not just for range. As we were looking to build a support network, which we found was absolutely paramount, because of the importance of uptime, well, we were able to partner with some of the best dealers in the industry, and in North America and in Europe, leveraging the Iveco dealer network. This dealer network that is being shown on this map is especially unique in that they're very well-capitalized organizations. They have longstanding reputations and history in the territories that they cover. They have deep knowledge of the customers that operate in these areas. They have complementary businesses, and just as importantly, they have power systems businesses that are essential as customers are buying these trucks and then ultimately say, "Well, how's this infrastructure gonna work, and how do I optimize my total cost of ownership? How do I do this in a way that I get the maximum benefit, by having an integrated solution?" That is something that we can offer. We are very, very focused on customer success. The early-day comments from our customers are outstanding in terms of how we deliver the product, train the customers, stay with them through the pilot phase. We're putting extensive amount of training with our dealer network. We have offered service training. We have done sales training. We're creating dealer councils to share best practices. We know that ultimately success comes from happy customers, and we want to be the best in the industry in terms of making sure that customers get the best experience from a service standpoint and of course the sales. We like to say, "Sales sells the first truck, service sells the rest." Right? That's where you build loyalty. We are laser focused on making sure that we deliver on our uptime commitments and support. The opportunities here, and the work that has to be done in order to support this business from a logistics standpoint, parts, communication protocols, data as a service, will become extremely important, and there's a business to be built around that, the type of upgrades that will become available to customers that will make them all more efficient, and provide great value opportunities. All of that is coming, and we're focused on building out that capability. A lot of that, of course, is in process today. You know, just anecdotally, there has been some negative customer feedback, and I think I have to be transparent and share that with you, and that is when some of these customers announce that they're getting these trucks, they get very irritated calls from their customers to say, "Why aren't you announcing that you're gonna be using these trucks on my routes?" So it's really incredible. We've gotten feedback to say, we as the customer that we may be working with on a pilot, we did not expect the attention that we have received, the positive attention from our customers in piloting these vehicles. It's great feedback. We are starting to see incredible momentum here and the interest to put these trucks into operational practice by the fleet and by the customers that they serve, so that's great news. Obviously, that's not a complaint because we can solve that problem. Here are some images. Mark, maybe you can join me here in just showing how much excitement the deliveries of these trucks are generating already. These are our posts of deliveries to dealers. We have eight dealers that have received trucks. We're doing more, but maybe you wanna just- Yeah, we're rolling out. You can see some of the comments, right? I mean, it's. What happens when we deliver each one of these to a dealer, we send out a team of people with them to orient them to the truck, but also to commission the MCT, walk them through that. If you look at our dealer network, almost all but one has attended training here in our service center training, but then also we go there to ensure they're ready to receive the truck. You see some of the great comments, and this is really that next thing. Yeah, we're only delivering to a dealer, but what they're already doing is leveraging these trucks to have big events. Customers are showing up to ride in these trucks already. We delivered to Wagner just at the end of last week, and they already took the truck to the Capitol in Colorado and had a big event about a zero-emissions vehicle showing up in Colorado. You see the positive comments here. We're super excited. Our dealers are excited. They're now hosting customer events with them, and more importantly, they're building road mileage. Many of these dealers have operations where they're delivering their own service parts, moving stuff in between, so they're not just sitting there as show trucks at a showroom. They're being used every single day in their operation, giving rides, hauling loads. Super excited about this rollout for sure, Pablo. Yeah. Okay, and I think with that, we can take the remainder of the time. Fire away. with any questions that you may have. Anyone? Wow. No questions. Obviously the incentives, especially in California, are quite substantial, and there's a maximum limit to them. How confident are you that once you've hit the upper limit on the number of vehicles that can get these incentives, that you'll still be able to offer a competitive product on a TCO basis for your battery electric models? You wanna start? Yeah, I can start that, and then anybody can chime in. It's a great question because, yeah, the incentives are super high, but if you look even in energy sources, if you remember the map Pablo showed of where diesel is super expensive, it does come down to a lot of the fuel, right? But the fuel for a battery electric truck is electricity, right? Some of those areas where incentives are, California, New York, some of those places have the highest electricity cost in the nation as well. Not by coincidence, that's where the highest energy costs are. If you look at certain other parts of the country, I'll pick two as an example, right? We have a super big dealer, HOLT, in Texas. Texas, Oklahoma, that area, very, very advantaged electricity pricing. When you look at the price of electricity, which is a huge component of the TCO model, we are even at the price of the truck, we are finding ourselves very competitive TCO wise. Now, it's not gonna be identical. These trucks are more expensive than a diesel truck, but we feel like that if we can get within striking distance and work with our customers because of their ESG goals, because of that demand pool Pablo talked about from their customers, it wins them new business, and we're close enough on the TCO that we can get that demand pool. We already have a couple of orders. Not every order on that list was from California. Some were from Tennessee, one was from Pennsylvania, other areas that aren't as far along- Florida in their incentive journey. Yeah, Florida as well. Florida. We do feel like we can get there. Good question. We've taken some conservative estimates on the maintenance side because with more road miles, we'll get even sharper on that. We expect to see more benefits there. We also are expecting a longer life of these vehicles. If you can push out the life, put more miles on it just makes the TCO more and more attractive. There are a lot of things here that are going to be relevant that we think are going to continue to make this truck more competitive as Michael and Jason and the team cost reduce the truck over time as we scale up the business. Michael, thanks for stepping in for that piece. No pressure, man. Yeah. I have a bigger question for maybe Mark and Pablo. I mean, we're seeing energy crisis globally these days, and there's increasing focus on decarbonization. Energy security is high on the agenda, many countries. At the same time, I think we're all seeing that there's been underinvestment in energy traditional energy, but also investment into new fuels and alternative fuel infrastructure is not ready for a substitution. Clearly, Nikola is doing your part, making it possible to actually produce fuels locally, but also making the net zero or the decarbonized product available for markets. Tell us how Nikola think about energy independence and security combined with actually providing a net zero or zero-emission product. How should we think about that? We recognize the importance of energy security. That's not an area that we directly influence. That is a state of the world, right? In terms of different continents, different nations, their ability to secure energy from their own resources or having to import it and deal with issues. I think everybody knows what I'm referring to here. We just see that as this opportunity that is emerging on top of the importance of sustainability to move to different types of energies that can be produced locally. If you just take Germany, for example, 55% of their natural gas comes from Russia. The issue that we're all facing in the world today represents a very significant energy problem for Europe. Europe has already been focused on sustainability, decarbonization, and renewables. The energy security issue only adds to the urgency to move in the direction of more renewables, more alternate sources of what was traditional energy. That benefits us in the business because for the longest time, while the technology exists to create hydrogen, for example, the source of demand was very low. It was going into industrial purposes, but nothing at the type of scale that would drive the investments and the cost reductions that were necessary. As I just got back from Europe two weeks ago, I saw Michael there, and we were there with Iveco and the broader team dealing with many issues, but I was also meeting with energy companies. The momentum that we experienced in our discussions and the opportunity that Nikola represents to bring more demand to justify the investments and also make compelling cases for subsidies to governments like the German government that is eager to see that investment take place favor us. Now, we would never be happy to be favored because of a very bad situation that is happening. But no one can argue with the momentum that had already been there, and now is accelerating with urgency because of national security issues. Certainly, you know, as that allows this technology to come to market fast, be proven, which allows governments to say, "Well, if that works, we can move faster now to regulate the use of fossil fuels because the technology exists. It's proven, it's a good solution, so let's get going. That's where you see those regulatory mandates start to come faster. I would just add to that what we're doing is going to accelerate and highlight the ability of hydrogen to create the grid that will be available to us in the future, and will solve all of this. Right now, the problem of inter-intra 24-hour period variability of demand is solved exclusively almost around the world with natural gas. Natural gas turbine peakers solve that problem. Every 24-hour period, they solve that problem. It's natural gas that gets burned to deal with the peak. That's also what's used to deal with the peak between seasons. In the Northern and Southern Hemisphere, you have differing peak seasonal demands. That's also satisfied today by natural gas. The base load tends to be nuclear, coal, or hydroelectric, and then natural gas handles the variability. In the future, you need a gaseous fuel, particularly for the industrial uses, to be able to deal with that. The gaseous fuel is required for things like cement and steel and chemicals and glass. You cannot make any of those things with batteries. You need a gaseous thermal fuel source. In the future, that's not gonna be natural gas if we're gonna decarbonize. It has to be hydrogen. What we're doing in creating hydrogen at scale, using the renewable sources that are intermittent in their demand, so solar and wind, along with a base load of hydro and solar, which also is zero carbon, we're showing that you can make hydrogen cost effectively. It can compete with natural gas on a cost basis, and it can match up all of this variability the way natural gas does today. That's what we're doing for the world right now, is we're showing the world how to create an energy grid in the future that can be just as energy intense for all of us. We don't have to live in a yurt and use composting toilets and be off the grid to save the planet. We can have an energy intense life just like we do today, and it can come from the sun directly through PV or from the sun by creating wind. It can come directly from there, or it can come from hydro or nuclear, and it can decarbonize the whole economy, and we can all have a wonderful modern life with even cooler devices and great technology and still be sustainable forever. That's what we're proving right now, and that's why the energy It was pointed out earlier that the energy side of this has much bigger implications. As Pablo pointed out, we're building a great truck company. As we do it, we're gonna prove out the energy grid of the future. All right. We're very excited. Yeah, super. Thank you. Yeah, we do have time for one or two more questions. Just, with regards to the rate schedule with APS, is there any limitation on how big the hub can be in Arizona with regards to the electricity you can get out of that deal? No, thankfully, no. That was one of the greatest things about the partnership we were able to establish with the Arizona Public Service and the Arizona Corporation Commission blessed it. They wanna see hydrogen produced. They see the benefits, and we were able to get a rate that we are extremely excited about. No limitation- No limit. As long as you're producing hydrogen. What they understood is that we're gonna make that hydrogen out of the excess of solar in the middle of the day and out of the excess of nuclear and hydro overnight, which today all of that's being wasted or being paid to wheel away. We actually. The grid operators have to pay to wheel that away during the middle of the day. That's why the wholesale prices go negative during the cooler months of the year. We're gonna solve that. That's why they gave us an unlimited rate. You can make all you want. If I understand the math right, with your 32 tons, that'll support about 2,000 trucks, is what I estimated when I looked up some averages of trucking miles and stuff like that. That's not that many trucks. Each ton will support about 25 trucks, more or less. Okay. Yeah. This is but still not that many, so you're gonna really need to scale that up here. Yes locally and in California. What do you do in, like, Pennsylvania when you sell something where you don't have. You guys aren't working on a contract. Maybe you are, but when you're selling a truck and you're trying to bundle in the hydrogen, are you having to source a local supply with every deal? Do you wanna take that? Yeah, I can. Yep. If you remember, they showed you a couple of circles. They talked about two deals, Wabash Valley in Terre Haute, Indiana, and then the distribution of it. If it's liquefied the way we're doing it gives us a pretty good circle of range that can touch the Chicago area, Pennsylvania, all of that. As they mentioned, there's local offtakes that they're exploring all over that area, right? That will start to add up to support our demand in those areas. The Arizona hub will feed into Southern California and in that area, same way. We will bring on others. You heard Erik talk about scaling that one up as we do our jobs and sell more trucks into that area. We have that anchor point with Wabash Which gives us 50 tons a day initially, and then we're exploring other areas in that same location. There are a lot of things that we can't talk about now where you have a mix of larger sources of production, lower sources of production. There are many companies that are looking to produce hydrogen for X reason, and they're looking for offtakers so that they can take advantages of scale. They know that Nikola is looking for hydrogen, and so we talk to them about location, timing, cost. That's why we have an energy supply and trading team. This is what they do. This is That's all they do. That's all they do. They have models for every source of hydrogen regions, and they are getting a better and better understanding of this every single day. They are constantly talking to producers, potential production partners so that we can get an idea of what is available and what time and how that matches up to the truck demand. We will have a very methodical way of going in developing the business. We will also be opportunistic. Even though we have this plan that says, you know, this is how we're gonna build it up in phases and ultimately connect it, you know, just earlier this week, a phone call about an area that we weren't looking at that represents a very attractive hydrogen price. It's at a small scale, but that at least allows for maybe a discussion with one or two customers to get something going. We'll take it. Just to add to that, Vinnie, that's a great question because that's what's pushed us as we've evolved our strategy. We will still produce on-site in some places. But that's what's pushed us into the hub and spoke because you have to go to the spots where the conditions are optimal. I call these the high ground, the places where you've got the right electricity rate, which is 90% of the cost of making hydrogen approximately. So that electric rate is everything. You have to go places where you have cheap abundant electricity from renewable sources, and then you gotta make a lot of hydrogen there, and then you move it. You move it with trucks at first, and as you heard, eventually with pipelines. Have you told us approximately what a price is per kilogram? Hydrogen is in the contract for the person buying the truck. You gotta wait for Kim on that one. Okay. We'll go into detail on that. Look, we have time for one more question. You wanna do one of the onlines? A question came in from online. What kind of warranty does Nikola offer for their trucks? How do we back them? It's various. I mean, each component's various, but we will warranty it through the lease period, basically in general. I wouldn't wanna go and start off the cuff quoting each individual component, but the trucks are fully warranted through the life of the key components, is what I would say. The most important part of the warranty, obviously, we're pulling from that parts bin that's fully validated and warranted that already was established by Iveco and Case New Holland. Those parts all have an established warranty. We pass that through. That'll be the same as the diesel truck. Yeah. The most important part of this is what do you want your fuel cell for? What do you want your battery for? And in those cases, we're teaming up with our supply chain partners, manufacturing partners, and we're coming up with a plan to offer a warranty that will compete with the diesel trucks at least. That's our strategy. Yep. Great question. The great news is that the feedback on these trucks and I encourage you, do your research, talk to these customers that have been public about trying them. Please look into this. Don't take it from us. This is an exciting time. These are good trucks. We are absolutely committed to supporting them, and we're very excited about what's coming. 10-minute break, but Isaac, and we'll come back in exactly 10 minutes, so it'll be 4:45 Pacific Time. We'll crank back up. 10-minute break. In leaving for the break, I'll remind you on this point that most expensive component of the battery vehicle is by far the battery. Residual values of used vehicles, which are out of control right now in all areas. Right now, the benchmark there is actually battery vehicles. You have vehicles that have negative value at, say, seven years of life right now because their batteries are junk, and you can't dispose them. You gotta pay somebody to take it 'cause they don't know how to dispose of it. On the other hand, you've got seven-year-old passenger vehicles made by a company not very far from here that are worth—have the highest residual values of any vehicle out there. That's because their battery still has an incredible state of health compared to its new. There's still a great battery in there. The battery being useless or the battery being really good after six or seven years, it is everything for the value of these vehicles over the long haul. The batteries we have in these trucks, theoretically, based on engineering and expectations, our batteries are more babied on an individual basis in terms of charging in and out because there's 41,000 of them in the truck. Each demand only gets divided by 41,000 in each cell. They're babied. Little trickles in and out. Our thermal system is more capable than the thermal system in the passenger cars that have those great batteries, which that's another key, is to keep them in a nice even temperature range all the time. You don't want them to get hot. You don't want to get them too cold. That's what we're able to do with our thermal system. Our batteries are based on the same chemistry as those batteries that last so well. These should last even. We're really excited about the potential of the residual value. That's all I can tell you at this point. Really excited about that. All of our modeling assumes that those batteries are worth nothing in seven years. It's all upside. Whatever value is there over nothing, that's upside to the model. All right. Break back at 4:45. 7 minutes. I know we're getting late in the day, so I will do my job to keep this brief. A lot of what I'm gonna cover has already been talked about generally by the energy team and by the sales team, and so I'll give you a little bit of depth. We've got March Madness going on right now. Go Blue. Any other Go Blue around the table? There we go. That's what I like to see. It gives me a little boost. I appreciate that. Yeah. That is an American basketball joke. Yeah, sure. Anyway. Chris Holmes. Yeah. Anyway, Britton Worthen. I'm the Chief Legal Officer, and I have the pleasure of going over with you a couple of the carrots that are out there, we'll call them, incentives, and sticks that exist as it relates to the regulatory environment. We'll just cover those briefly. Many of you are familiar with the Infrastructure Investment and Jobs Act that was signed into law by President Biden in November of 2021. A couple of important earmarks here. $8 billion set aside for regional clean hydrogen hub program. The FOA is due out on that in May, Funding Opportunity Announcement, and so these dollars are gonna be coming online soon. As we learn more about the program, at Nikola, we are keeping a very close eye on all of this. Just anticipating some of the questions, these processes are very political, and so there's no guarantee on any of this. These are potential nice-to-haves, and we're looking and doing whatever we can to potentially influence this in our favor, as we work through the political process. Port Infrastructure Development Program, they've set aside about $0.5 billion for that, which is great. That's to upgrade. You've already heard we're targeting ports right now. That's to upgrade charging, potentially hydrogen fueling at port locations. We're doing what we can to hopefully influence that Charging and Fueling Infrastructure Program as well. Another $2.5 billion earmarked for that. Also in line for potential targeting by Nikola is the U.S. DOE loan program. $40 billion set aside for upgrading our infrastructure related to technology and to reduce emissions. Some of you might be familiar with the Monolith announcement that came out earlier in the year. It's a hydrogen production facility that they're looking to bring online in Nebraska. They've been earmarked for about a $1 billion loan from this program with the DOE. They're in the early stages, but it's something along those lines that we're looking to tap into as well. You've heard about the HVIP program out of California, up to $150,000 per truck in drayage operation, $120,000 per truck if you're not in drayage. Really good programs coming online there. The Nikola Tre BEV is already approved in that program, so we look to be able to take advantage of that. The New York TVIP, or Truck Voucher Incentive Program, is literally coming online as we speak, the Nikola Tre BEV we've already applied pursuant to that program and look to be hearing back from New York very quickly. We hope to be the first truck that's actually approved for that incentive program, up to $185,000 per truck funding approval. Unique difference about New York versus California is in the New York program, they're asking you to remove an internal combustion engine from your fleet for every one that you're replacing with a zero-emission vehicle, and so there's a little more of an incentive as a result of that. You've also heard about the LCFS credits, the Low Carbon Fuel Standard credit, we're looking to take advantage of as well. Just to give you a glimpse of some of the foreign incentives, Germany is giving up to 80% reimbursement for the incremental cost of the difference between a diesel over a zero emission vehicle. They've set aside about $8 billion for that. We're seeing a lot of movement on the incentive side. I should highlight that you hear a lot of talk around the incentive space, as it relates to cleaner emissions, zero emission vehicles. All of these relate to heavy trucks, so you're seeing a lot of heavy truck initiatives that are coming online. They're starting to recognize transportation industry is a major polluter. Of the transportation industry, heavy trucks and buses are the biggest segment of that for polluting. If you can knock out and put zero emissions in that space, it does a big dent in emissions. Next are the mandates. You got the sticks that are out there. On the federal side, we're starting to see a little more from this administration. As you guys are aware, things have been a bit tough, a little gridlock back in Washington, D.C., but the EPA has proposed a Clean Trucks Plan rulemaking, which would allow for higher standards in NOx and GHG standards as it relates specifically to buses and heavy trucks, and that would be for model year 2027. They hope to have that regulation finalized by year-end of 2022. They're just taking comments right now. This was just barely. They've just barely announced that, and so we hope to have that finalized by the end of the year with which we'll have a little more of a line of sight on what the federal government's requiring as far as a mandate goes. States are much more aggressive in this space, particularly the state of California. They are leading out nationwide as it relates to incentives, but also with mandates. They passed the ACT rule, the Advanced Clean Trucks rule, in 2020. It's now been passed by five other states, Oregon, Washington on the West Coast, and then on the East Coast, you've got New Jersey, New York, and Massachusetts that have also passed it. These are mandates that require by 2035, 40% of all truck sales, tractor truck sales will be zero emissions. That's aggressive. 75% of all Class 4 to Class 8 straight truck sales, zero emissions. These are mandates that are going in place, and we're starting to see other states that are starting to look to adopt these types of rules. For instance, look to Europe. They're also quite aggressive in this stance. Many of you probably saw the announcement for the UN climate coalition that came out at the end of last year, MOU signed, with a very aggressive target. Not a regulation yet, but a target by various nations seeking to have zero emission heavy truck sales at 100% by 2040. 100% by 2040. I mean, that's just around the corner. We're starting to see a lot of sticks out there, demand or mandates starting to push in the heavy-duty space. What's Nikola doing? We're obviously keeping our eye on all of those programs and hoping to have conversations that will influence those to our benefit. Wanted to highlight a couple of other things that we're doing in this space, specifically as it relates to state legislation. Oklahoma, we've been working with, they're about to pass some zero-emission-related state regulations. One of the things as part of that package is a $100,000 tax credit towards the purchase of battery-electric or fuel cell vehicles. We really like this because this could be a roadmap for other states to use as they're adopting similar types of legislation, and it's from a red state, which we like. You see a lot of the blue states on the coast that are already adopting some of these things. This is a red state that's taking a lead and saying, "Listen, we see the value of mandating or at least incentivizing zero emission truck sales." We think that'll be coming online in Oklahoma in the near future. A red state right smack dab in the middle of the oil patch. Absolutely. They see the value of the hydrogen economy, and they're looking to take advantage, and I think we'll see others adopt once Oklahoma does. Build Back Better, you've heard some talk about. Not much to say there. We're hoping that we see some of that gridlock back at D.C. start to loosen. There are definite things on the horizon as it relates to tax incentives for commercial vehicle sales and for hydrogen production, and we're having those conversations right now. We're not just waiting to hope that things work out in our favor. We are having relevant conversations with key senators, hopefully to influence that and obviously show our support. Being located in Arizona is a good thing for us. As you know, the senator here has been quite vocal and is a swing vote for the Democrats in getting some of these initiatives passed, and we've got good inroads there. We like our positioning as it relates to Build Back Better. Then we're also working some other things as it relates to federal weight exemptions. We've talked to you about battery electric trucks. We've talked to you about how the newer technology tends to be a little heavier and we're looking to affect policy change so that it can put these vehicles on parity with diesel. We've already seen an increase of 2,000 lbs, going from 80,000 lbs gross vehicle weight up to 82,000 lbs gross vehicle weight. We're hoping to extend that even more. These are some of the things that we're doing. Happy to answer any questions you may have. We're happy to turn it over to Joe for the people section as well. We just want to give you an overview summary because we've mentioned all these things as we've gone through. We wouldn't normally include HR in this kind of a presentation at this level, but there's some things about Nikola that usually I think you should know and you'll be curious to learn. Joe, do you wanna cover that real quick? You bet. Thanks, Britton. Thanks, Mark. Joe Pike. I lead the HR team for the organization. Happy to be with you and happy to have an opportunity to talk to you a little bit about our people. Hopefully, you've gathered from your interactions today that we've got a pretty engaged, passionate, mission-driven organization full of employees who care a lot about what they do and the outcomes that we're going after as an enterprise. I wanted to start by highlighting a few key elements of our remuneration philosophy and how those elements tie to one of the core values that you've heard about today, acting like owners. To start with, let's take a look at our executive comp scheme, which isn't altogether unique, but is pretty rare with some unique aspects. It starts with a $1 salary. The top five in the organization. How rare do you mean? I don't know. I've never read a proxy statement that. What I mean by rare is, you'll sometimes see executives, CEOs like Mark, making a $1, but you'll seldom see all five named executive officers making a $1. I never have. Which is the unique aspect of what we're doing here. What's helpful about that is cash is obviously critical to us at this point in time. It's critical to any organization, but particularly a pre-revenue entity like ours. We care about how we allocate our capital, and this is one way that we save some cash by giving all of a dollar to our executives on an annual basis. The rest of their annual total pay is wrapped up in stock awards. Those stock awards, the value of those awards has been externally benchmarked and aligned with survey data for technology and automotive companies. For most of the team, those awards are on a three-year cliff, which means that they don't have access to any of the award before the third anniversary of the date of grant. This vesting scheme drives long-term decision-making and thinking. Once again highlights the fact that we're in this and obviously believe in the long-term viability of the enterprise. We also have a performance scheme, a performance program that's tied to shareholder gains, and it's tied to shareholder gains in the form of stock price hurdles. These hurdles need to be met and maintained for a specified period before the award is earned, and it's double trigger, so in addition to being met and maintained, a certain amount of time also needs to elapse before the award is received and distributed to the executives. You can see these hurdles here, $25, $40, and $55. Those are the stock price hurdles, and the time-based piece of that corresponds to the long-term orientation on the annual stock awards, three years. You have to be here three years, and we have to attain those stock price milestones in order to receive the performance side of that. Steve. If I may, just on this point, as a board member, I also wanna make it clear that management actually proactively came to the board. We had an early run-up in the share price, so a lot of these hurdles technically would have been met. You know, to their credit, they came back and said that that wasn't the spirit of what we were trying to achieve. They reset the clock. None of those were earned from a standpoint of clearing the hurdle. The price points remained the same. The $25 and the $40 and the $55 still need to be hit, but they did the right thing, and I think it's exemplary of how this leadership team's been operating from the very beginning. I just wanna make that point. Thanks. Thanks, Steve. I would also point out that I asked for this for myself, and so far, the top six have all asked to join it. Everybody's on $1. They don't get paid anything except equity, and it's all locked up for three years. It's pretty powerful. Talking a little bit about the broader employee base, I mentioned that one of our core values as a company is to act as owners, and there's no better way to drive that home than to actually make all of our employees owners in the organization, which is why every employee, every regular full-time employee is eligible to receive a portion of their total pay in stock. Here on the screen, you can see that every level, every salary grade, these are salary grades that are highlighted here on the left, is eligible to receive a percentage of that total pay target in stock. The more consequential the position, not surprisingly, the greater the total opportunity for ownership. We're serious about acting like owners. We think people behave differently when they look at things, spending decisions, day-to-day engineering decisions, when they have an ownership stake in the organization. The other great thing about this is that they share in the value that they create, which is a key piece of all this for us. We wanna make sure that the executive team is not the only one benefiting from the value that we see being created day to day and that we believe in in the long run. Lastly, just wanted to highlight for those here some of the growth of the team. We've experienced tremendous growth. We doubled in size in 2019. Then again in 2020, again in 2021. We're now just over 1,000 employees all in with all employee types, and the vast majority of those roles are tied to product-focused teams. Since the beginning of the year, we've added over 120 positions on the product side and close to 30 on the commercial and support side. We're pleased to have Michael with us. We're very excited about his presence. We've also recently added a Global Head of Technology and Systems, Cheryl Tilly, which helps with our gender diversity. We've actually got a pretty diverse profile. We've got a lot of international colleagues. We've also got a lot of ethnically diverse colleagues. We're over 50% in that category. Gender diversity is a major focus for us. We crossed the 20% threshold this past year, but it will continue to be an area of focus for us as we hire. With that, I'd be happy to field any questions about our personnel strategies. Please, yeah, Rick. Does the three-year lockup apply beyond the executive level, so further into the organization? Thanks for asking. The three-year period applies, but the three-year cliff vest does not. For other employees, that's incremental, semiannual over 36 months. For some of our new executives, it's also semiannual over 36 months to give them some skin in the game. For existing executives who have been here, who have some options from early days, it is a three-year cliff, which as I mentioned, means that there's no access to any of the award prior to the third anniversary of the date of grant. Does that make sense, Rick? Again- The other folks are on three years, but it's incremental over the three. Okay. Thank you. Only the top people are a three-year cliff. You get an award, and it vests semiannual over a 36-month period. It takes three years to fully vest, but it vests in increments over that time. Thank you. Yeah. All right. Thank you, Mark. Kim will cover the numbers, and we know you have travel schedules and things, so we will get you out of here. We promised at 5:50 P.M. We'll get you out of here before then. Wow, we shared a lot of information today. A lot of great questions, a lot of great discussions, and a lot to think about. What's the takeaway from today's meeting? You should be excited. Why? Let's talk about what we reviewed. One, we began start of production for BEV trucks. We stated that we will deliver 300-500 trucks this year. We also discussed great feedback from our testing customers. We also talked about our business pipeline is building and increasing every single day. For fuel cell truck, we said Alpha truck is a fantastic truck. By the time we get to start production second half of next year, we are going to have the best fuel cell truck in the world. We will be at least 2-2.5 years ahead of any of our competitors. Think about that. At the last earnings call, we said for 2023, while we didn't provide any revenue guidance, we stated that we have enough battery cells to build 2,300 trucks. You can do your own math in terms of what that revenue looks like. Now, for fuel cell trucks, it also require hydrogen fuel. The way you should think about that is that every fuel cell truck that you sell, for example, if you sell it for $400,000, you will spend another $500,000 for fuel over the next seven years. It's tremendous amount of revenue that you can generate as you have your installed base of fuel cell truck increase every year from new fuel cell trucks. Second, we also said when you think about our manufacturing capacity, in the next year and half, we will have 45,000 units a year capacity. Most of our CapEx will be spent by then. When we get to steady state, there will be very little CapEx required from our manufacturing facility. We don't have a constraint in our manufacturing capacity. It's supply chain. Third, we talked a lot about our hydrogen fueling ecosystem. What's really exciting is we talked about as a light capital-efficient approach and how we are going to reduce amount of CapEx required to build out our network. Fourth, we covered a lot about incentives and mandates. Folks, when it comes to zero-emission vehicles, tipping point or has already happened. It's all about how quickly do we adopt, and that all depends on mandates and incentives. It's good for the world. We need to get there, and these are significant impact when we think about production tax credits and LCFS credit. Huge impact in terms of economics that you wanna think about. In the next year and a half, less than a year and a half, we are gonna be generating hydrogen fueling revenue. Why are we so excited? Well, think about those factors and drivers. As you walk away, and investors who are listening, you wanna think about those factors. Our revenue will grow significantly from this year to next year, and will grow significantly after that. Let's think about how you should think about our revenue. We have truck business with two products, BEV and fuel cell electric truck. It's a simple math. Number of units sold times average sale price. We talked about when it comes to our fuel cell truck, our value proposition is to not only sell trucks, but because there is no hydrogen ecosystem, also sell fuel. Fuel revenue is actually larger over seven years than our truck revenue. Think about kilograms dispensed or consumed times rate per kilogram. For our service business, miles driven times rate per mile. That's how you should be thinking about our revenue. Next slide. How do we think about our cost, especially cost of goods sold? There's been a lot of discussion about cost of goods sold, especially in the COVID environment, manufacturing disruption, and everything that's going on in Europe. We talked about, and you probably learned from Mark Duchesne, especially for manufacturing trucks, there are about 1,300 end-of-line items, but there are probably about 8,000 parts. Over 90% of those parts represent only about 10% of value of BOM. There's about 10% of parts that represent 90% of value. That's what we're trying to address. We said in our 2020 guidance, around 60% negative gross profit margin. What does that mean? As an illustration, if we sell our truck for $300,000 BEV truck, our COGS will be about $500,000. That's comprised of two components: BOM, $375,000, and then you have labor, overhead, warranty, freight, another $125,000. How are we going to get to expected positive gross profit margin next year? We are trying to influence both variables. This is all about scaling and making sure that we produce more trucks. That number will go down. For BOM, there are several ways we can reduce BOM. Number one is volume increase. As we scale, the unit price will drop down. As you know, our biggest challenge right now is with our battery cells, modules, and packs. That represents about 60% of BOM. We are working on that. Of course, as Mark talked about, in the short term, cell price is somewhat fixed. However, for next year with Proterra, we do have better price than this year for battery cells, modules, and packs. We are going to spend a lot of time talk about localization. When you think about e-Axle as well as cab, as we localize, we are going to be able to reduce that price. We have a line of sight in terms of by each component, key critical component, how we can reduce that price, and we do have a target. We are confident that this will be positive gross profit margin next year. Ultimately, by 2025 or 2026 timeframe, when we are in steady state, we do think we can get to 20% gross profit margin. Is that going to take a lot of work? Absolutely. That's what we believe, and that's what we intend to do. Fuel cell unit economics. You should think about for next year, the fuel cell gross profit margin will be similar to BEV gross profit margin this year. What that means is probably about -60% or so. By end of 2024, do we think we can get to break even or slightly better? Sure. Once again, Mark Duchesne talked about there are lots of components, overlap components, as well as overlap processes. There are two key critical components that we're trying to reduce. One is fuel cell power module. As you know, we are partnering with Bosch. Bosch is investing over EUR 1 billion to be able to scale, because ultimately, scaling is going to be critical to bring the price down. Then number two is onboard hydrogen tanks. There are very little capacity. We are working with our potential suppliers to localize that. As that supply chain expand, we know that price will come down. Once again, steady state in 2026 and 2027, do we think we can achieve 20% gross profit margin? We do, and we're going to work on that. The illustrative bundle lease. Remember, this is simply a go-to-market strategy. The way you should think about our revenue is what we just discussed. Simply take number of trucks sold, multiply by average selling price. Hydrogen consumed, multiply by $1 per kilogram. The way we think about go-to-market strategy for bundle lease is that ultimately, because we don't have fueling infrastructure at this point where customers can simply stop and fuel, we have to make sure that we are addressing both chicken and the egg problem. That means it's highly orchestrated. When you think about traditional diesel cost of ownership, around $5-$25 per mile. There are many customers, especially with new technology vehicles, would like $1 per mile solution. In those cases, we can wrap that into a single lease. Now, when you think about this allocation, this is simply internal allocation. How we think about for accounting purposes, we would allocate $1 per lease. But the unit economics should be about the same as what we just reviewed. Ultimately, when we're doing this, it's to help customers to match total cost of ownership. Not only that, makes it more convenient to ensure that we're providing fuel to our customers. Hydrogen value chain. We discussed in detail what does this mean. Let me provide some context. When we went public, we said our plan is to build on-site gaseous generation production station. We said, over the next 10 years, we'll probably need to build around 700-1,000 stations, and each station would cost around $16 million-$20 million. If you're building 1,000 stations, that's $20 billion over the next 10-15 years. If you were to finance that 60% debt, 40% equity, just the equity portion would be $8 billion. Significant amount of capital. However, as you can tell, as we have been thinking a lot about this in terms of how do we build out this ecosystem? How do we do it most efficiently, not only that, do it effectively? We think the way to do that is with our partners. We leverage our partners to work with us and also fund the development costs. What that means is that this will be off balance sheet. It will be an SPV. Our partners will own the asset. We may own small portion of the equity. All of a sudden, this is capital efficient. The way we're thinking about this is that ultimately from capital efficiency, when you think about CapEx previously for on-site gases generation, $6 billion-$8 billion, we think we can save that probably 75% or 70%. This is a much more efficient way of thinking about how we can build out this ecosystem. We can do it quicker, and we can assemble world-class partners to work with us such that Nikola, the entity that will consolidate, will buy hydrogen fuel from production assets, and then will sell to stations that we own, or potentially owned by partners, or potentially owned by capital partners, where we may have a piece of equity. We believe this is the way for us to move quickly and be asset light and capital efficient. Let's think about in those situations, how do incentives impact our pricing? This gets pretty exciting. Carey covered a lot about incentives. Think about this. When and if, we believe when the production tax credit passes up to $3 per kilogram, when that happens, that incentive flows through the SPV. What that does, though, is that it reduces and it offsets cost of production. That means we can purchase that hydrogen for cheaper price. For LCFS credit, which flows through the dispensing SPVs, that would allow, once again, because it reduces the operating costs, it would allow us to actually increase the pricing of hydrogen. That means we capture greater margin at the energy that we control. And so potentially, it's fantastic. I know there's a lot of questions about hydrogen pricing and cost, and this is just at a high level. As you know, this is a moving target. A couple of years from now, the way you should think about this is that when it comes to cost, we think we can generate hydrogen for $2.50 to about $3. In terms of price that we can sell for, we think we can sell for $3.50-$4.50, depending on the market. We will be generating hydrogen fueling revenue. Remember, second half of 2023. This is only one year away. Let's think about CapEx. End of 2021, we have spent about $105 million in CapEx to-d ate. We stated that for 2022 guidance, we'll be spending another $150 million for building and equipment. Next year, our CapEx could be as high as $350 million. Why is that? The biggest portion will be paint and weld line. There's a lot of debate internally about do we really have to have that because that does not impact our capacity. However, it may impact our margin, and we are debating, and it will come down to make or buy decision. At some point in late Q2 or early Q3, we will make that decision. Ultimately, if we move forward, we'll have paint and weld line that will cost about $150 million, total CapEx of $345 million. In total, we anticipate spending about $600 million for our manufacturing facility. Of that, $250 million is related to the building. The question comes down to, is there a better way to monetize that? We are thinking about sale-leaseback. As you know, we are not in a business of owning real estate. We are conscious of capital that we have. It's investors' money, and we will carefully consider sale-leaseback perhaps for the portion of the building. Why should we be excited? Well, there are some other opportunities that's not factored into our business model. We have not really mentioned about Europe. As you know, we have joint venture manufacturing facility. The JV, when they produce truck, they will mark it up 5%, cost plus 5%, and sell to Iveco and to Nikola Europe, our marketing affiliate. Cost plus 5% will become our cost of goods sold for the marketing affiliate, and then we'll mark it up, and we'll sell to our European customers. We have not talked about that. That's because we're still working on homologation of Nikola Tre for the European market. That will happen sometime next year, and we'll be starting to sell trucks in Europe. There will be an opportunity for expanded revenue as well as profit because that marketing affiliate entity will be consolidated into Nikola. We talked a lot about dispensing credit and production tax credit. Dispensing LCFS credit is anywhere from $1 to about $3.50, depending on production methodology, CI- score, and the market price for LCFS credit. That's a tremendous opportunity if you think about that. On the production side, up to $3 per kilogram. You know, Mark talks about four or five years from now, is it possible that the cost of hydrogen fuel could be significantly lower than diesel? When you think about then the margin that we can capture, well, that will all accrue to Nikola Energy company. We get pretty excited because ultimately, what we're saying is that, yes, revenue, energy company could be larger than our truck company. It's critical, especially for the next 15-20 years, that we think about this as we need our truck company to be highly successful. That creates demand for hydrogen fuel. Combined together, that creates a competitive advantage, and we'll be able to build a wide and deep moat. That's what we're trying to accomplish. When we think about that, it's pretty exciting where Nikola could be in the next five years, seven years, 10 years. Funding. All the investors are concerned about funding. As you know, we ended the year with about $958 million of liquidity, $522 million of cash, and about $436 million in ELOC 1 and ELOC 2. Here's how we think about our liquidity. This year, we will likely spend $750 million or $800 million. Look, we understand that this is precious money coming from our investors. We spend a lot of time thinking about capital allocation decisions. We know that this is important. We constantly debate about how quickly we move because the faster we move, there's additional expenses. We think about where do we add those resources to make sure that we have maximum impact. Mark Duchesne talked about when it came to equipment for our manufacturing facility, about half of that we actually bought used equipment from Brazil, and we moved it over. That's because we want. We are cost conscious. When we think about spending about $800 million, that means we'll end the year with about $150 million. However, where we are looking to monetize $100 million-$150 million coming from equipment and the building that we have already paid in cash. We'll convert that to capital leases as well as sale leaseback, and we think we can generate at least $100 million of cash. That means by the year-end, we'll end with about $250 million of cash. Now, how do we think about amount of liquidity that we need to have at any given time? You know, as you know, the way we think about this, and investors should be happy that we think about it this way. At any given point, we need to make sure that we have enough liquidity for the following 12 months of operation. That means by end of 2022, we'd like to see an end with around $900 million of cash or potentially slightly more. You can do your own math in terms of actual cash that we'll end with and how much we need to potentially raise to fill that gap. As a reminder, this is what we have committed, deliver 300-500 trucks this year. We showed some illustration about our price, average selling price $300,000. Do we think there's room to push that up? Of course. We have limited number of trucks that are being delivered. These are great trucks, and there should be some green premium. We are working on that. Successful pilot testing of the fuel cell vehicle, as well as building beta versions of truck and making sure that we are ready for start of production second half of next year. Can we get there? Absolutely. We have great truck, as we talked about. Christian talked a lot about technology associated with our fuel cell truck. We think it's the best truck out there. Think about the potential. Between our BEV truck and fuel cell truck, which is for short haul and medium haul, we can cover about 60% of Class 8 truck market in the U.S. Once we have next generation truck, we'll be able to cover long haul. We believe right now we're the only company that has product offerings to address short haul as well as medium haul and ultimately long haul. That's pretty exciting. Third, build, test, and validate our beta trucks. Fourth, this is pretty exciting. We talked a lot about a hub with TCE. Just to give you some perspective, TC Energy, they generate about $13 billion in revenue, 80% gross profit margin, 50% EBITDA. They generate $6 billion-$7 billion of cash from operations. They need to deploy their capital. We are their perfect marriage partner, and they are our perfect marriage partner for us. We are talking about a number of different locations. We will have to provide more information about the context and the scope of this partnership and what it means. We can tell you that there's plenty of capital to build out our hubs that we are looking at for the next several years. Last, announce two or more dispensing partners in California. There are over 15 separate discussions going on for California opportunities for dispensing stations. We have great potential partners that we'll be able to announce. As you walk away, should you be excited? Absolutely. Think about Nikola, where we are today. There's less of a risk now than a year ago. We have addressed all of our regulatory concerns. We have started production. There's a big difference between pre-revenue and when we'll start generating revenue in April, purely from a valuation perspective. Is this a great entry point? We would submit to you the answer is yes. As you can tell, we are pumped, we are excited. Watch us. One of the things that we have been emphasizing is clear milestones so that investors can monitor our progress, making sure any commitments that we make, we deliver and meet that commitment. We wanna show you so that we can build that credibility. This is a wonderful time for Nikola. Questions- and- answers. You talked about, once your phase III buildup is complete, that CapEx falls significantly because then it's just more maintenance CapEx. I did wanna clarify in the slides, it says you are at phase three by 2024. Does that imply that there's another year of similar CapEx spend in 2024 as sort of what you projected in 2023? Or does that 2023 spend in that table, is that it and that's enough to get you through to the end of phase III? Right. When we talk about 2024, what we're saying is that phase III will be completed beginning of 2024, but the CapEx spending will occur in 2023. I didn't hear you when you said the number of cars you expect to sell in 2023. Well, we never committed to a number. What we did say in a public announcement is that we have enough battery cells allocated to us to build approximately 2,300 trucks. If you had to force rank your shortages in the supply chain, battery packs, semis, like, what would be the three and what are you doing to fix that? Talked about packs, but without semis. You know, great question. You know, what we have stated right now, probably one of the biggest challenge is modules and packs, of course, cells. But as you know, we have two suppliers for modules and packs. Proterra will start towards this Q4 of 2022. Right now we're working with Romeo, and we are working very closely. We need to improve manufacturing efficiency, yield. We are working closely with them with respect to BMS chips so that there's no gap in terms of our production build. That's a challenge that we're trying to manage every single day. We have been very open about that. That's the reason why when we provided the risks, we said we have enough cells to build 500 trucks, but when it comes to modules and packs, it's 300-500 trucks. To the extent that we can execute that well, then we'll be able to perhaps get to 400 or 500. We have talked about all other components such as ECUs and VCUs and our displays that we have enough chips to build more than 500 trucks or e-Axle more than 500 trucks and inverters. It's a challenge that we're managing, and Bruna is doing a great job, and they're working hard. It's something that you have to manage every single day and making sure that we check and recheck and work with our suppliers, Tier 2 and Tier 3, and we are doing that. It's a global epic challenge. I've never seen this in my career. In decades, I've never seen a supply chain situation like this. Bruna and her expert team scrounging the world and working way over time to deal with this, I've never seen it before. We just talked about the persistent and the strategic kind of supply chain shortages for semiconductors, for battery cells, modules and packs, touch screens, display screens. Those are ones that look like they're more persistent and very strategic to us 'cause we use a lot of those things. Those are the ones we're really focused on. I gotta tell you, this is just the World Series of supply chain problems. I've seen things go short temporarily that I've never seen in my career, you know. I've never seen a production stoppage for seat belts. I've never seen a production stoppage for seats, practically for seats. It's not just because the supplier had a hiccup or something, it's that they're short, you know, they're just short globally. This is really unusual situation. What will get us out of that is the return of full production on existing capacity because that's what the problem is. Nobody's been at full production on their assets for the last 24 months. That's starting to come back. I'm cautiously optimistic that those are gonna resolve. The others are threatened to be much longer term because what's needed there is not just people to come back to work and make the capacity. We need more capacity. What's encouraging on that front is that there is more capacity coming, semiconductor capacity and battery capacity. The cool thing, as you saw in the last two days, a huge chunk of additional North American capacity is coming down right here in Arizona, right by our factory, with happens to be our partner for cells. We're very happy about that. We've known that's coming for a longer time than you have, but and we've been really anxious to announce it because that really does give us a warm blanket on that one. The similar capacity additions that are going on in the semiconductor business give us optimism about those things resolving, especially as we ramp up production. This year, we're only gonna make 300-500 units. You know, we've secured most of that supply. Next year, it goes up dramatically. As Kim said, we'll go into the thousands in terms of what we have available to us, and we are gonna be parts constrained for some time. Our facilities in Germany and here will be way ahead of the capacity, the amount of units that we can produce based on supply chain constraints. That'll be our constraint. We're feeling good about that longer term. It'll be a struggle in the, you know, 12- 24 month window, and then we think it'll alleviate. That'll also help us as we drive costs down. We'll be coming up in volume when that other capacity comes online. We'll be in a much better position. You know, when we were doing all this development work, the cost of battery cells came down every year. It's been going on for many years now. This is the first year that they went up. I think they're not gonna come down next year either, frankly. But after that, with a lot of capacity coming on, then we're optimistic that the things will get more competitive, so. Let's take an online question. Okay. Any other questions? When you're in discussion with clients, how's your ability to deliver a fixed b undled lease price per mile, how does that help you in discussions compared to diesel alternative that fluctuates? That helps us tremendously because right now those costs are extremely variable for freight carriers and for customers who own the freight. Right now you have no idea what you're gonna be paying over the course of the seven years. You don't know what you're gonna be paying over the course of a month let alone the course of many years in many cases. Diesel surcharges are very variable, and they're also tough to hedge. You can hedge them in the short term. You certainly can't hedge them for seven years. Offering a fixed price to a customer, that's very attractive to them, especially if it's in the range of their cost of diesel. Now, people who talk about can you really sell a lot of trucks, if we can hit the total cost of ownership of diesel and go zero-emission, nobody says no to that. The only question is, can you prove it? Give me a truck. Let me prove it to myself and my fleet. If you prove that and it hits, then I'll, yeah, I'll buy all you can give me. And that's how we've gotten our pipeline filled so far. Right now, we're not anxious to fill our pipeline, you know, with a lot more volume or a lot more further out because we kinda like the dynamics of the market further out. We'd like to test the price elasticity of these trucks and the, and the fuel going forward. You know, we're happy where we're at. We've got the first year of production pretty much covered for the battery cell. We got more than the first year of production on the fuel cell. Once those get out there and prove what we can do, everybody needs these trucks, everybody wants these trucks. You know, we really like our prospects. That pulls the energy side, which as you've seen just today is even more exciting than the trucks. I can tell you from our customers' finance folks, they love the idea of predictability, to be able to estimate costs for the next seven years. It helps them when they actually bid on business. Oh, sorry. Are there any companies like AB that have recently made emissions commitments around their fleets that are currently not customers of Nikola that are of particular interest to Nikola? Yes. Can you talk about that? Yes. There are a lot of customers out there who have made commitments and have a desire to go zero, and they're you know big. They're actually the biggest carriers out there, right? The biggest users of freight services and the companies that have the largest infrastructure for moving freight. As you would expect, we've had conversations with those people. So far, we've done deals with significant players, but they're more in the niches that we want to target in terms of geography, in terms of application. Those are the people that we wanna deal with, and those are the people we are dealing with. We like that. We're very comfortable moving into this space as we are. Then when we get a proven product, we might talk to the 800 lb gorillas in the zoo. We've been very happy dealing with the people that we have a natural marriage with, and we feel like we have a good cooperative relationship with. Those other folks, they know that they're 800 lb gorillas. Can you give us a recent example of a company like AB that has made an announcement like that? Like exactly like AB? Yeah. No, they were way early, and they were way specific. You know, they said, "By 2025, we're gonna be at X," years before anybody else did. Yeah. Some of the largest corporations in the world, they have made those announcements. For example, Amazon has made that corporate commitment about zero-emission. You know, what Mark Keith has not told you is that we have significant pipeline and discussions that we're having. You should assume some of the largest global brands, we are having those discussions. Yeah. We've been talking to them all along, and it's a very conscious decision about where we are in the market. We picked our spots. We'll continue to do that for a while. When the numbers get really big, we'll deal with that in terms of volume and we'll see what happens with the prices. One more question, and then we gotta get you out of here. Saved the hardest one for last. You know, you guys talk about targeting a 20% gross margin for both battery electric and fuel cell trucks. If I look today at companies that produce diesel trucks, they don't produce gross margins anywhere near 20%. So my question to you is, one, what is it about battery electric or fuel cell that's different than diesel that's allowing you to produce greater gross margins? And two, as your diesel competitors see that this is possible and try to do the same, what is your competitive advantage in maintaining those 20% margins in a competitive field? You know, that's a great question, and I understand why you're asking that question. If you look at traditional OEM commercial truck manufacturers, you're not going to see that kind of margin. You don't see that kind of margin either for traditional passenger car manufacturers. However, Tesla actually generates about 27% gross profit margin. You have to think about this from a larger context. These are highly sophisticated vehicles. Think about the amount of data that we can monetize. When you think about this is. These are not traditional diesel trucks. We would have you think about more broadly in terms of what the potential is. Especially in the case of the fuel cell truck, we're not selling the truck alone. We're trying to sell that as a bundle. We're selling the truck, the fuel and the service. Look at historical margins in the energy world. Look at what the energy companies have been able to get on their energy over the course of the last decades or century even. That, I think, you'll see is a different frame of reference. There's a reason we have funds in here that are in many billions who generated many of those billions in the energy business. The reason why you saw tremendous cost reduction in solar and wind over the last 10 years is Production Tax Credit. Is it good for the world and good for the country? Absolutely. This is the Biden administration's priority. All of a sudden, when you start to think about Production Tax Credit, it's going to be a game changer. It's going to be a bit of gold rush. Then if you think about LCFS credits that are available in three states now, as that expand, you can start to think about the numbers, right? We can get somewhat giddy when we think about that three, four years down the road, what this could be. Jack gets it off the hook, and he gets mad at me when I start talking about this because if you know, if you can produce hydrogen for $3 a kilo at a hub here in the Southwest, and you can move that hydrogen into California, then you produced it with a production tax credit that could be up to $3. You move it into California, dispense it into a vehicle with a LCFS credit that could be up to $3, and it only costs you $3 to make it, and you haven't even sold it yet. I mean, this gets off the hook. Our entire business is based on making money without any incentives, without any subsidies whatsoever. All of that's just upside. Just upside. We're not counting on those things to get 20%. 20% obviously is an aspirational target. When we look at what people are doing in the electric vehicle space now, and we look at what people have done in the energy business for decades, we think that's a really reasonable target. With that, thank you. Those of you who made the effort to be here personally, thank you. Those of you who logged in online, thank you for the time. We're super excited, and we're grateful for you for being interested and taking a close look. Hopefully, we'll see you again in the not too distant future. We'll invite you back down. Thank you.