Nikola TRE FCEV2
Courtesy: Nikola
Shares of electric truck manufacturer Nikola experienced a decline of over 26% on Friday following a complex second-quarter report, news about the departure of the CEO, and shareholder approval for the issuance of new stock.
Nikola announced on Friday that its CEO, Michael Lohscheller, will step down immediately due to a “family health matter.” Former General Motors vice chairman and current board chair, Steve Girsky, will assume the role of CEO.
Lohscheller will continue in an advisory capacity until the end of September to support the leadership transition, as stated by Nikola.
These developments coincided with Nikola’s release of its second-quarter earnings report. Here are the key figures compared with Refinitiv consensus estimates:
- Loss per share: 20 cents vs. 22 cents
- Revenue: $15.36 million vs. $15.4 million
Nikola reported a net loss of $217.8 million, or 31 cents per share, for the quarter. This figure includes $77.8 million, or 11 cents per share, related to discontinued operations due to the closure of the former Romeo Power battery-pack factory in California, which Nikola acquired last year.
In the same quarter of the previous year, Nikola incurred a loss of $173 million, or 41 cents per share. Excluding the discontinued operations, Nikola had no adjustments in the second quarter of 2023. On an adjusted basis, the loss per share in the year-ago quarter was 25 cents.
Revenue declined from $18.1 million in the second quarter of 2022 to $15.4 million in the current quarter.
Additionally, shareholders of Nikola approved the issuance of new stock, which could potentially double the total number of outstanding shares. The company is expected to raise additional capital later in the year.
During the second quarter, Nikola was able to raise $233.2 million in cash through stock sales and the sale of certain physical assets. It has also taken steps to reduce its cash consumption going forward. As of June 30, Nikola had $226.7 million in cash, compared to $121.1 million as of March 31.
Nikola shares fell 26% on Friday.
In May, Nikola announced the temporary suspension of production for its battery-electric truck to reconfigure its production line for manufacturing both the battery-electric truck and a new longer-range version powered by a hydrogen fuel cell. The company plans for the fuel-cell truck to become its primary product in the future and will only build the battery-electric version upon receiving orders.
Earlier this week, Nikola revealed that it has received orders for a total of 202 fuel-cell trucks from 18 fleet customers.
Production of fuel-cell trucks for customers commenced on
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
