Nikola Reports Smaller-Than-Expected Loss Amid Strong Truck Demand, According to Reuters

Nikola exceeded Wall Street’s expectations for second-quarter revenue and recorded a smaller-than-anticipated adjusted loss, reflecting an increase in deliveries of its hydrogen-powered trucks as customers boost their spending. This positive news led to a 17% rise in the company’s stock during early trading.

The results suggest that Nikola’s strategy to shift focus from battery-powered trucks towards hydrogen fuel cell vehicles is yielding results, as the company secures new clients and experiences a rise in orders.

In the reported quarter, Nikola generated $31.3 million in revenue, surpassing the forecast of $27.1 million based on analyst data. The company also saw a significant 80% increase in deliveries, totaling 72 hydrogen trucks, amid a general slowdown in the industry.

Additionally, Nikola is on track to finish the rollout of its redesigned battery-electric trucks by year-end.

After a surge of investment in electric vehicles during the pandemic, industry growth has since decelerated as consumers express concerns over range anxiety, higher prices, and the uncertain economic climate when making large purchases.

Despite this slowdown in electric vehicle demand impacting share prices, Nikola’s stock has dropped over 70% this year. The company reported an adjusted loss per share of $2.67, which was better than the expected loss of $2.85.

Recent developments include Nikola signing Walmart Canada as a key customer in June, marking the delivery of a hydrogen semi-truck to the retailer.

As of the end of the quarter, Nikola’s cash and cash equivalents amounted to $256.3 million, down from $345.6 million three months prior.