Nikola Corporation (NASDAQ:NKLA) is improving efficiency and overall quality by streamlining its electric vehicle (EV) production process. The manufacturer of commercial EVs aims to shift its battery manufacturing operations to Arizona by the third quarter.
With this move, Nikola’s truck assembly and fuel cell power module assembly, along with battery module, pack production, and battery-line automation processes, will be performed under one roof.
To ensure a smooth transition, the company will continue manufacturing at the current site in Cypress, California until the second quarter of 2023.
Furthermore, Nikola disclosed plans to retain a battery engineering unit at a separate facility in California. This unit will focus on developing next generation battery management system software and modules.
Nikola President and CEO Michael Lohscheller said, “This decision reinforces our commitment to finding ways to optimize our cost structure and create a sustainable business model.”
What is the Prediction for Nikola Stock?
On TipRanks, analysts are cautiously optimistic about NKLA stock. This is based on two Buy and three Hold recommendations. The average stock price target of $6.10 implies 141.1% upside potential from the current level.
