Nikola To Move Battery Production From California To Arizona - What Does It Mean? - Nikola (NASDAQ:NKLA)

Nikola Corp NKLA said it is moving its battery manufacturing from Cypress, California, to its Arizona manufacturing facility.
The move will bring Nikola's truck assembly, fuel cell power module assembly, and battery module and pack production under one roof.
It also will include battery line automation to improve quality and increase efficiencies.
The company intends to maintain manufacturing operations in Cypress through the end of Q2 2023 while it works through a transition plan.
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A battery engineering presence is expected to remain in California at a separate facility to focus on the development of Nikola's next-generation battery management system software and modules.
"This decision reinforces our commitment to finding ways to optimize our cost structure and create a sustainable business model," said CEO Michael Lohscheller.
The move is expected to be complete by the early third quarter.
Price Action: NKLA shares are trading higher by 0.86% at $2.53 on the last check Friday.