Nikola had already entered into an agreement to sell up to $300 million worth of shares to Tumim Stone Capital in June. The electric truck maker has signed a second purchase agreement with the investment bank, bringing the total to $600 million. Nikola Stock dropped after the announcement.
Since entering into the first agreement, Nikola has already sold nearly $47 million worth of common shares to Tumim, according to Reuters. Under the second purchase agreement, Nikola will have the right, but not the obligation, to issue and sell up to $300 million of additional common shares to Tumim. This is subject to a number of restrictions.
“The equity lines with Tumim, together with the estimated cash, will provide Nikola with access to approximately $800 million of liquidity by the end of 2021,” expresses Nikola CEO Mark Russell.
This is relevant because Nikola plans to start low-volume production of the battery-electric Nikola Tre in Ulm, Germany, later this year. For the Nikola Tre destined for Europe, the US start-up will supply the electric drive train, for example, while Iveco will supply the well-known S-Way platform including the driver’s cab. As reported, assembly will take place at the plant of Iveco’s parent company CNH Industrial.
The first examples are to go to selected customers in the USA. Next year, the Tre will also be deployed in Europe. Among others, the port of Hamburg is to become a pilot customer in Europe. In the medium term, production in Ulm is to increase to 3,000 vehicles per year.
After the introduction of the battery-electric Tre in North America and Europe, Nikola then plans to launch two FCEV trucks. Nikola entered the eMobility stage a few years ago with the latter drive concept.