Nikola NKLA Second Quarter 2022 Results
Nikola Motor Company
Source: Nikola Motor Co.
Nikola on Thursday reported second-quarter revenue that beat Wall Street expectations by delivering 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 Refinitiv analyst survey:
- Revenue: $18.1 million, vs $16.5 million expected.
- Adjusted loss per share: 25 cents, against an expected loss per share of 27 cents.
Nikola built 50 trucks during the second quarter, of which 48 were delivered to its dealers by the end of the quarter. All 50 of these trucks were battery-electric versions of its Tre semi. This was slightly below Nikola’s own forecast, which called for between 50 and 60 deliveries over the period.
“The primary reason our deliveries are at the lower end of our guidance range was caused by two weeks of production losses in the second quarter related to battery delivery delays from Romeo Power,” said Chief Financial Officer Kim Brady. during the Nikola earnings call.
Nikola on Monday announced an agreement to acquire Romeo Power.
The company is ramping up production at its Arizona plant and said it plans to build trucks at five per shift by November.
Nikola confirmed its earlier forecast for 2022. It still plans to deliver between 300 and 500 of its battery-electric Tre trucks by the end of the year and complete prototype testing of its next fuel cell truck. hydrogen fuel cell with two fleet customers, including Anheuser-Busch.
Shares of Nikola rose about 5% in premarket trading after the news broke.
Nikola still has a lot of cash in 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. This was an increase from the $794 million in total cash at the end of the first quarter.
Separately, Nikola said 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 trucks.
Nikola has had a busy week. After announcing its acquisition of Romeo Power for $144 million in stock, the company won shareholder approval on Tuesday to issue new stock. Nikola had spent two months working to secure 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 over around 20% of its shares.
This is a developing story. Please check for updates.