UTV Manufacturer Nikola to Sign First Lender in April

Nikola Motor Co. expects to announce its first lender partner in April 2018, Powersports Finance has learned. The news follows the release of specs in August for the Nikola Zero — a $35,000 UTV — and the company’s purchase of electric watercraft startup Free Form Factory in November.

The Nikola Zero and the company’s unnamed personal watercraft vehicles will begin production in the first quarter of 2018. “We are [currently] working with multiple banks on the financing for Nikola trucks and the UTV,” Chief Executive Trevor Milton told Powersports Finance.

In August, the company was still “analyzing costs, warranty, an d other issues” before deciding on a lender, Milton previously said. With a recent oversubscribed funding round, the Salt Lake City-based startup has three years of operating capital on hand.

That Series A round earned more than $110 million for the company and closed in Jun e, according to Pitchbook. Nikola Motor, founded in 2015, anticipates raising another $150 million in a Series B round in the first quarter of 2018. That round gives the company a pre-funding valuation of $1.5 billion, Milton said.

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