Nikola’s sales exceed expectations with delivery of 48 electric trucks

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Nikola Motor Company

Source: Nikola Motor Company

Nikola reported second-quarter sales on Thursday that exceeded Wall Street’s expectations as it shipped 48 of its electric heavy-duty trucks. The company also reported a lower-than-expected loss for the period.

Here’s what the company reported compared to what Wall Street expected, based on a survey of analysts by Refinitiv:

  • Revenue: $18.1 million, versus $16.5 million expected.
  • Adjusted loss per share: 25 cents, versus the expected loss of 27 cents per share.

Nikola built 50 trucks in the second quarter, 48 of which were delivered to his dealers before the end of the quarter. All 50 of those trucks were battery-electric versions of the Tre semi. That was slightly lower than Nikola’s own forecast, which had called for between 50 and 60 deliveries.

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“The main reason our shipments came in at the lower end of our target range was due to two weeks of production losses in the second quarter related to delays in Romeo Power’s delivery of batteries,” Chief Financial Officer Kim Brady said during Nikola’s earnings call.

Nikola announced on Monday an agreement to acquire Romeo Power.

The company is ramping up production at its Arizona plant and expects to build five trucks per shift by November.

Nikola confirmed its previous expectations for 2022. It still expects to deliver between 300 and 500 battery-electric Tre trucks by the end of the year and to complete prototype testing of its future hydrogen fuel cell truck with two fleet customers, including Anheuser-Busch.

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Nikola’s stock rose sharply after the news was released. The stock ended the day at $7.90, up about 6.3%.

Nikola still has plenty of cash on hand. As of June 30, it had $529 million in cash and an additional $313 million on its existing line of credit, for total liquidity of $842 million. That was an increase of $794 million in total liquidity at the end of the first quarter.

Separately, Nikola announced that it has selected locations for three California hydrogen fuel stations, including one in the Port of Long Beach. The stations, expected to open in late 2023, will be used by Nikola’s upcoming fuel cell-powered trucks.

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Nikola has had a busy week. After announcing its acquisition of Romeo Power for $144 million in stock, the company won shareholder approval Tuesday to issue new shares. Nikola had worked for two months to get enough votes to allay an objection from the disgraced founder, Trevor Milton.

Milton left Nikola in September 2020 due to fraud allegations, but he remains the company’s largest shareholder with control of approximately 20% of the shares.

This is a story in development. Come back for updates.

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