California, Nikola, Tesla discussed on CNBC's Fast Money

CNBC's Fast Money


When you charge your truck, say a big semi truck. That's electric in California your cost. Be Somewhere right around about thirty cents. A kilowatt hour. So that's nearly seven seven or eight times the cost per kilowatt hour inside of California or other cities. Then you would, with the Nikola hydrogen, so even though hydrogen is a little less efficient, it's much cheaper to actually it can be cheaper to operate than the battery electric. I'm sorry, so you're saying that. If you charge the truck, the semi truck outside of California, then it's. In certain markets is a not make sense to have that hydrogen fuel cell truck. So the hydrogen fuel cells all based on one specific market, that's what we call the the long haul distribution, so it's where it really makes sense because weight is everything and. Everything you need to run your truck three shifts eight hours a day. You know essentially all the time, and that's hydrogen. Really make sense where it's lighter, it can run three shifts, and when or two, but the battery electrics only get a really run one shift or day, 'cause if you're. If you're charging really fast, you'll actually degrade and ruined the battery. And if you're charging your you know if you look at cost comparison of a battery, electric versus hydrogen. Battery would be cheaper if you're paying the same rate on energy, but you don't. Because the battery electric truck, you're paying utility for Energy to hydrogen, we actually control the energy through the through the federal transmission line, so we can get energy really cheap, okay? Your Business models you mentioned is is interesting because you're basically selling these trucks to companies like an anheuser busch and your packaging everything along with it services as well as fuel costs, etc, and this would be on a lease basis correct. Yes, very similar to like Amazon and Verizon. Do you think about you buy a cell phone towers included right? You don't need to worry about contracting towers well today. If you think about trucking right now, you have to fuel from different people. You have to buy service from different people. It's really complex Nikolas, the only company in the world that's consolidated all into one very similar to Amazon. If you want to buy, like say you want to buy a new pair of shoes, you want click of a button. They take care of the merchant. They tear the seller. Take care of the shipping they. They take care of the returns. It's all done in simplified, and that's the first time this has ever been done in trucking, and that's why Nikola you've seen such a response around. The world is the generation that's investing now. They care more about the environmental impact of what you're doing. Then they do like. Oh, you're six months eight months from revenue. They don't care. They're like you know what your change. In the world you're reduce emissions more than anyone else. We're invested into you, so so of the different buckets, the truck, the fuel the services. Where where's your room to increase the margin? Overtime. Every it's on hydrogen the really a high. Energy Technology Company we sell the energy to consumers. Consumers I'm businesses that are buying the trucks. That's where the money is. Obviously. We want to reduce the cost of truck, but we're now cheaper to drive than a diesel is per mile, and we make five times revenue of our competitors, so it was awesome. I mean that's why. Nicholas really cracked a chicken and egg. And so as you get that cost of hydrogen, which as I understand, it is now what two dollars per kilogram according to a recent presentation. As you get that down, your customers won't expect to have those cost savings as well. You only do so. That's the ideas right now. And then. How do you make more money? If you're constantly giving them breaks because you're getting the price of hydrogen lower. Well you don't give them brakes on everything you get them. You give them a locked in rate for seven years and then anything that we can drive down the cost that seven years give us. Got It okay Trevor I think we have a date on June twenty-ninth. I cannot wait and by the way this I am so excited, so not only. Am I going to make sure I? Come back with you guys June? Twenty nine June twenty nine, but. The world is going to announced June twenty-ninth where we where we actually show, walk the Nikola. Badger, in life person for the whole world to see I want to make sure you guys. Are there front row and center I'll get you guys tickets, and it'll be one of the greatest shows you've ever seen in your life. Is it going to be worthy of Elon Musk? Unveiling its products. Comparison right. The next thing on musk. Do you like that I? Am I like to I like to think about the fact that I'm Trevor Ninety one, but I can tell you this. It'll be better show than you've ever been to in your life pretty neither automotive show in the world all right track great to speak to be CIGNA. Attributing mountain founder of Nikola Motor Guy. What do you think? Couple things I mean what he said. He said a lot of amazing things. I Miss Chemistry or physics in. College so I can't speak intelligently about the technology, but what he did say interesting. The investing public wants to hear that you're changing the world. He just spoke about es in a nutshell, which is why the stock probably can continue to go higher, I hear hydrogen and I think of May Have One thousand, nine, hundred, thirty seven became might remember that of course the. The old HINDENBURG got a little bit scared, but maybe the technology's come a long way since, but what he mentioned is the exact reason. The Exxon and Chevron having so much trouble and names like this going parabolic. I don't think as much as you would love to fight against this for a number of reasons I think this story has legs. Yeah Tam quickly. Well I think you have a case where you got a story that you define the three different buckets of revenue streams, and it's it's very different for example than Tesla, What's interesting about the valuation really tough to get behind? But at least they're doing things that they have you know I. Don't have to believe in the value of autonomous or data or technology, which is that makes Tesla Tech Plan I don't think that's what we're trying to do. Here is now say compare them, but. The valuation that's still pretty. Pretty unattainable right now. I think for people to get comfortable with, but I. do think that the things they're are doing very differently. They're outsourcing their production so all questions about deliveries or what they can deliver a truly I i. don't think our issues I think if you look at at at the stock. There's some dynamics here that have also had something to do with while the stock has run the way it has including, it's essentially. been a reverse share into a structure, which doesn't have the same liquidity, and ultimately you've had a case where you have this massive short squeeze and I think that's been a big part of the dynamic here, but it's a very exciting story, and it's a very different story all right coming up. We are gearing up for earnings from Oracle tomorrow. After the bellwether options, traders see a big pop in the socks, teacher and later Burger.

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