- Nikola sign financing agreement with ENGS Commerical Finance
- The deal facilitates the sale of the Tre BEV and the forthcoming Tre hydrogen fuel-cell trucks
- Innovative financing solutions should strengthen the wider move towards zero-emission vehicles
Things appear to be finally changing for Nikola (NASDAQ: NKLA), after a rocky road in earning trust, debunking a fraudulent reputation, and most importantly, clearing the path to production. It was just last week that the EV truck maker announced that its Tre battery-electric semi-truck has finally begun rolling out of the company factory in Arizona. It’s been a long time coming, navigating various headwinds that caused delays and outlook cutbacks, but now things are looking up for Nikola.
In today’s announcement, the company revealed it has signed an agreement with ENGS Commercial Finance, a member of Mitsubishi HC Capital Group and a leading commercial finance company, to facilitate the sales of Class 8 Nikola Tre BEVs and the hotly anticipated Nikola Tre hydrogen fuel-cell electric vehicles, which is expected to reach production in the near future.
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ENGS will operate directly through the Nikola network of registered dealers, offering customer finance solutions for the purchase of Nikola vehicles; as well as charging assets and infrastructure requirements. It’s imperative that burgeoning clean transport companies like Nikola offer financing solutions, meaning the purchase can be tailored to the customer's specific financial capacity. The deal is part of a wider mission from Nikola to establish multiple partnerships with leading finance specialists.
As Nikola CFO Kim Brady summarised:
“Our partnership with ENGS will strengthen our ability to help even more fleets transition to zero-emissions by offering a variety of innovative solutions for those customers that require alternative financing options”
Today’s news comes as a welcome reminder for Nikola investors that the company is edging ever closer to sales, and thus long overdue revenue. The company expects to deliver up to 500 of its trucks in 2022, and this financing agreement might act as a warning nudge for long-term bears.