Nikola Corp. Reports Surprise Widening in Losses and Negative Revenue


Nikola Corp. (NKLA) announced a surprising increase in losses and negative revenue in its recent report. Despite these numbers, the hydrogen- and battery-electric truck manufacturer experienced a 4.8% rally in premarket trading due to optimistic remarks from Chief Executive Steve Girsky.

Financial Results

The company disclosed a net loss of $425.8 million, or 50 cents per share, compared to a loss of $236.2 million, or 54 cents per share, in the previous period. This increase in losses can be attributed to the significant rise in the number of shares used in the per-share calculation, which nearly doubled from 438.4 million to 857.2 million.

After excluding nonrecurring items, the adjusted per-share loss expanded from 28 cents to 30 cents. This was contrary to the FactSet consensus, which anticipated a decrease in losses to 14 cents per share.

Revenue also took a downturn, plummeting from a positive $24.2 million to a negative $1.73 million. This stark difference deviated from the FactSet consensus, which predicted a positive revenue of $9.5 million.

Future Prospects

Despite these challenges, CEO Steve Girsky remains optimistic about Nikola Corp.’s future. He stated, “We are moving forward and leveraging our first-mover advantage with our hydrogen fuel cell electric truck. We are laying the foundation for the ‘hydrogen highway’ initiative, set to begin in California.”

Moreover, Girsky believes that the competition has yet to catch up, leaving ample room for Nikola Corp. to capture a significant market share. With the impending introduction of the Advanced Clean Fleets Rule and incentives such as HVIP and ISEF – which offer up to $288,000 and $408,000 respectively per hydrogen fuel cell electric truck in California – the company is poised for growth.

Market Performance

Nikola Corp.’s stock has experienced a decline of 65.2% in the past three months, contrasting with the performance of the Global X Autonomous & Electric Vehicles ETF (DRIV) which has dropped 21.4%, and the S&P 500 (SPX) which has slipped 6.1%.

In conclusion, Nikola Corp. faces challenges with its widening losses and negative revenue. However, with its focus on hydrogen fuel cell electric trucks and upcoming government initiatives, the company remains optimistic about its future prospects in the market.

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