Nikola Corporation (NKLA) has signed agreements with the Bosch Group of companies under which it will build the Bosch fuel-cell power modules at its Coolidge, Arizona facility for Nikola Class 7 and 8 fuel-cell electric vehicles (FCEV).
Nikola designs and manufacturs heavy-duty commercial battery-electric vehicles (BEV), FCEV and energy infrastructure solutions. (See Nikola stock charts on TipRanks)
The modules are set to launch in 2023 with the first application being the Class 8 regional-haul Nikola Tre FCEV. The company expects the vehicle to have a range of about 500 miles with common fuel-cell power modules utilization in 200 kW and 300 kW configurations.
As per the agreements, Nikola will have access to both fully assembled fuel-cell power modules and major components, including the fuel-cell stack. The remaining components are to be sourced by both companies together.
The CEO of Nikola Mark Russell, said, “After extensive analysis of the best options out there, we are proud to enter into this strategic relationship with Bosch. The result is the best of both worlds in our ‘make versus buy’ analysis.”
Last month, Wedbush analyst Daniel Ives maintained a Hold rating on the stock and lowered the price target to $10 from $13. The new price target implies 6.2% downside potential from current level.
Ives said, “It is the company’s investments into a hydrogen powered battery and the benefits of this type of electricity/battery vs. the traditional battery electric motors currently used in EV’s globally that is a key part of driving the value proposition in the eyes of investors on this potential story stock.”
Overall, the stock has a Hold consensus rating based on 1 Buy and 6 Holds. The average Nikola price target of $13.33 implies 25.1% upside potential to current levels. Shares have lost 33.7% year to date.
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