NKLA - Nikola moves battery manufacturing to Arizona from California

Nikola  ( NASDAQ: NKLA ) pared its loss on Friday after the company announced that it is moving its battery manufacturing from Cypress, California to the Coolidge, Arizona manufacturing facility.

The move is expected to complete by the early part of Q3.

The goal is to improve quality and efficiency by bringing truck assembly, fuel cell power module assembly, and battery module and pack production under one roof.

Nikola ( NKLA ) intends to maintain manufacturing operations in Cypress through the end of Q2, while it brings its production capabilities in Coolidge online and works through a detailed transition plan to prevent manufacturing disruptions.

"This decision reinforces our commitment to finding ways to optimize our cost structure and create a sustainable business model," said CEO Michael Lohscheller. "We remain focused on meeting our 2023 milestones, including pack and module production targets," he added.

Shares of Nikola ( NKLA ) were down 1.15% at 12:30 p.m.

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