Nikola EV truck maker gets a jolt on Wall Street after beating analysts’ Q2 expectations
Nikola Corp. doubled revenue and increased production numbers for its fuel-cell battery electric trucks in the second quarter, boosting the Phoenix-based company’s share price on Friday.
Nikola (Nasdaq: NKLA) generated $31.3 million in revenue in the second quarter, exceeding Wall Street analyst expectations of $26.1 million. It was also an increase from $15.4 million the company generated in the prior-year quarter.
The company’s quarterly revenue marked the “strongest” in its history, driven by higher wholesale deliveries and truck prices, which increased $7,000 per unit to $388,000, Nikola CEO Steve Girsky told analysts and investors on an earnings call.
Nikola produced 77 hydrogen fuel-cell electric trucks and delivered 72 to its dealer network in the quarter, exceeding the company’s guidance as it expected to sell between 50 to 60 trucks.
“Wholesale deliveries were up 80% from Q1 and comprised of several repeat customers, which is a testament to the performance of our trucks and customer satisfaction,” Girsky said.
Nikola reported a net loss of $133.6 million in the quarter. It marks an improvement, however, from the company’s net loss of $217.8 million in Q2 2023.
In July, Nikola regained compliance with Nasdaq after it completed a 1-for-30 reverse stock split, which was intended to increase the company’s share price. Previously, Nikola’s stock was trading below Nasdaq’s minimum price of $1 per share.
The company had $256.3 million in unrestricted cash in the second quarter, according to a regulatory filing.
While Nikola’s “profitability wheel is gaining momentum” with an uptick in interest from national accounts, the company remains focused on optimizing costs, Okray said on the earnings call.
“We have to keep in mind, though, accepting this new technology takes time and education,” he said. “But, bottom line, our high-touch sales team and the dealer network are making inroads with the national accounts, with more demos and discussions in process and more to come.”
Nikola stock spiked 10% to $9.30 a share after the company reported its financial results Friday morning, later closing at $8.44 a share, still a gain of more than 8% for the day.
Company expands customer base, HYLA refueling network
Nikola is in a “unique position” to attract prospective partners and the company is receiving calls from automotive manufacturers, suppliers, hydrogen producers and large energy companies, Girsky said.
IMC Logistics, a marine drayage company headquartered in Tennessee, ordered 10 of Nikola’s hydrogen fuel cell electric trucks in Q2, bringing the total in its fleet to 30.
Separately, Nikola sold a hydrogen fuel cell electric truck to Walmart Canada, which it’s using in its fleet. The company also received repeat orders from two national accounts.
“Many of these orders are important because they are the first order for hydrogen fuel cell trucks for their respective fleets,” Okray said. “They are testing the new technology and demonstrating that they are committed to growing with us.”
In addition, Nikola is on track to open 14 hydrogen refueling stations by the end of the year.
The refueling stations consist of modular fuelers, partner stations in California and Canada and Nikola’s Coolidge manufacturing facility south of Phoenix. The company plans to open its newest hydrogen refueling station on Aug. 12 in Santa Fe Springs, California, Girsky said.
The refueling stations are the first step in the company’s plans to create a “hydrogen highway” to support its hydrogen fuel-cell trucks along freeway interchanges and freight routes in Southern California.
“Ontario and the surrounding area near the Port of Los Angeles and the Port of Long Beach have proven to be critical refueling areas that are amassing density quickly,” Girsky said.