Nikola Motor Company
Source: Nikola Motor Company
Nikola on Thursday reported second-quarter earnings that beat Wall Street expectations as it delivered 48 of its electric heavy-duty trucks. The company also posted a smaller-than-expected loss for the period.
Here’s what the company reported compared to what Wall Street expected, according to a survey of analysts by Refinitiv:
Income: 18.1 million dollars, against the 16.5 million expected.Adjusted loss per share: 25 cents, compared to the 27 cents loss per share expected.
Nikola built 50 trucks during the second quarter, 48 of which were delivered to its dealers before the end of the quarter. All 50 of these trucks were battery electric versions of their Tre semi. That was slightly below Nikola’s forecast, which had called for 50-60 deliveries during the period.
“The primary reason for our deliveries to be at the low end of our guidance range was due to two weeks of production losses in the second quarter related to delays in delivery of Romeo Power’s battery pack,” he said. CFO Kim Brady said during Nikola’s earnings call.
Nikola announced an agreement to acquire Romeo Power on Monday.
The company is in the process of ramping up production at its Arizona factory and said it expects to build trucks at a rate of five per shift by November.
Nikola confirmed its previous guidance for 2022. It still expects to deliver 300 to 500 of its battery-electric Tre trucks by the end of the year and complete prototype testing of its next hydrogen fuel cell truck with two customers of the fleet, including Anheuser-Busch.
Nikola shares rose about 5% in premarket trading after the news was released
Nikola still has plenty of cash on hand. As of June 30, it had $529 million in cash and an additional $313 million remaining on its existing equity credit facility, for total liquidity of $842 million. That was up from $794 million in total liquidity at the end of the first quarter.
Separately, Nikola announced that it has chosen locations for three hydrogen fueling stations in California, including one at the Port of Long Beach. The stations, which are expected to open in late 2023, will be used by Nikola’s upcoming fuel cell-powered trucks.
Nikola has had a busy week. After announcing its acquisition of Romeo Power for $144 million in stock, the company on Tuesday won approval from shareholders to issue new shares. Nikola had spent two months working to get enough votes to overcome an objection from its disgraced founder, Trevor Milton.
Milton left Nikola in September 2020 amid allegations of fraud, but remains the company’s largest shareholder with control of approximately 20% of its shares.
This is a developing story. Check back for updates.