Daimler Truck, First Hydrogen, Nikola - Green logistics companies in focus

Daimler Truck - Passing on the truck toll

Logistics associations are calling on the German government to use the revenue from the CO2-based truck toll for the transition to fossil-free drive systems. Industry associations are pushing for around EUR 30 billion to be invested in this direction by 2027. Specifically, the additional funds from the CO2 surcharge, which has been in place since December 2023, are to be used to promote electrically powered trucks and expand the charging infrastructure. Daimler Truck would certainly benefit from this. However, the Company is now pursuing a two-pronged approach and is also developing hydrogen-powered trucks.

Together with its partners, the Company has begun construction of a new battery cell factory in the US state of Mississippi. Once completed, the plant will have an annual production capacity of 21 gigawatt-hours on a 500-hectare site in Byhalia. This could power around 35,000 electric trucks. The joint venture Amplify, consisting of Accelera, Daimler Truck and Paccar, plans to start production in 2027. As CEO Kel Kearns emphasised, this investment is a significant step towards reducing CO2 emissions in the transport sector. The market for electric trucks is expected to grow by around 31% in the coming years. The Company is therefore prepared for this growth.

Daimler Truck sold fewer vehicles in Q2 2024 than in the same period of the previous year. From April to June, 112,195 trucks and buses were sold, which corresponds to a decline of 15%. Sales fell particularly sharply in Asia, with a drop of 29%, followed by Europe and Latin America with 22%. In North America, which is considered the most important market, sales fell by 5%. The bus division fared better, recording growth of 8%. Analysts issued 5 "Buy" recommendations in July with price targets of between EUR 46 and EUR 61. The share is currently trading at EUR 38.24.

First Hydrogen - Driving global expansion

First Hydrogen is a visionary company dedicated to emission-free transportation using green hydrogen. The focus is on the development of hydrogen-powered commercial vehicles, which have achieved a range of more than 630 km in test operations. The production of 10,000 to 25,000 of these vehicles per year is planned for the period from 2025/2026. By integrating existing technologies and proven chassis, First Hydrogen is pursuing a "best-of strategy". In addition to vehicle production, the Company has set itself the goal of covering the entire hydrogen value chain - from production and refueling to marketing. With ongoing projects in the UK and Canada and activities in the US and the EU, the Company has diversified its positioning.

Following the successful testing of hydrogen-powered commercial vehicles in the UK, interest is growing among fleet operators looking to switch to zero-emission vehicles. The focus here is on the markets in North America, South America, and Europe. There is great interest in Quebec, in particular, as hydrogen vehicles are more reliable than battery-powered vehicles in cold climates. In Mexico, discussions are also underway regarding the expansion of a nationwide hydrogen filling station network. The announcement by the new UK Prime Minister, Sir Keir Starmer, to provide £500 million to support the green hydrogen sector and position the UK as a leader in the global hydrogen economy is positive and welcomed by the Company.

The focus is on North American, South American, and European markets. There is particularly high interest in Quebec, as hydrogen vehicles are more reliable in cold climates compared to battery-powered vehicles. Discussions are also underway in Mexico regarding the expansion of a nationwide hydrogen refueling station network. The announcement by the new British Prime Minister, Sir Keir Starmer, to allocate £500 million to promote the green hydrogen sector and position the United Kingdom as a leader in the global hydrogen economy is seen as a positive development and is welcomed by the Company.

The Company has started the feasibility study for a 35-megawatt green hydrogen production facility with an associated assembly plant in Shawinigan. To further fund its expansion strategy, First Hydrogen has arranged non-brokered financing via convertible bonds in the amount of CAD 2.7 million. The bonds bear interest at 8% and are convertible into shares and warrants. The funds from this financing will be used for general corporate purposes. This gives First Hydrogen the financial flexibility to capitalize on the global movement towards green technology and sustainable mobility. The shares have been dragged down by the weakness of the hydrogen market and are currently trading at CAD 0.51.

Nikola - Shares under pressure despite glimmer of hope

Nikola Corporation, a US manufacturer of zero-emission commercial vehicles, has faced challenging times. The share hit an all-time high at USD 93, driven by a strong marketing campaign and some misleading statements from its charismatic founder, Trevor Milton. In retrospect, many of the promises proved to be hot air, resulting in the formerly celebrated Milton having to stand trial. The fraud conviction resulted in a 4-year prison sentence. Since the indictment, the Company has been fighting for its credibility and has had difficulties raising capital.

The share price continued to slide, reaching a low of USD 0.245 shortly after the announcement of a 1:30 reverse stock split, which lifted the share price well above the USD 1 mark again. On June 25, trading began on a split-adjusted basis, bringing Nikola back into compliance with NASDAQ listing requirements. This move brings stability to Nikola, at least for the time being, and helps the Company remain listed. After the split, the share price bottomed at USD 7.35 before rising by over 50% to USD 11.94.

Despite this short-term rise, investors still face challenges. While Nikola reported better than expected hydrogen truck sales in Q2 2024, it is far from financially stable. A total of 72 Class 8 hydrogen fuel cell trucks were delivered. CEO Steve Girsky mentioned new customers such as Walmart Canada and returning customers such as 4GEN and IMC. A total of 112 of these trucks were sold in the first half of the year. The share has recently slipped back below the USD 10 mark and is currently trading at USD 9.98.

In summary, all the candidates presented make entering the green logistics sector possible. Daimler Truck is showing clear ambitions to expand its market share in the field of electric drives by building a new battery cell factory in the US. First Hydrogen impresses with its comprehensive approach, covering the entire hydrogen value chain through various international projects. Finally, despite past challenges, Nikola has positive sales figures for hydrogen trucks and is stabilizing itself through measures such as the reverse stock split to remain competitive. These companies are setting important milestones on the path to a more sustainable future in the logistics sector.