PHOENIX - Nikola (NASDAQ:NKLA) Corporation (NASDAQ:NKLA), known for its development of zero-emissions vehicles, announced today that it has achieved its sales target for the third quarter of 2024 by wholesaling 88 Class 8 hydrogen fuel cell electric trucks. The company's performance aligns with its previously stated guidance, which projected sales of 80 to 100 fuel cell units for the quarter.
In a statement released today, Nikola's CEO Steve Girsky expressed satisfaction with the company's quarterly performance, noting that the sales represent a record for the company and highlight the addition of a new HYLA modular refueling station. Girsky emphasized Nikola's commitment to pioneering zero-emission solutions despite challenges in the broader market.
The trucks, assembled at Nikola's manufacturing facility in Coolidge, Arizona, contribute to the company's year-to-date total of 200 hydrogen fuel cell trucks sold. Since the truck's market introduction in the final quarter of last year, Nikola has wholesaled 235 units.
Nikola's business strategy includes not only the production of battery-electric (BEV) and hydrogen fuel cell electric trucks (FCEV) but also the development of the HYLA energy brand, which focuses on creating a comprehensive hydrogen refueling ecosystem. This system is designed to encompass supply, distribution, and dispensing of hydrogen fuel, supporting the company's vision for sustainable transportation and a cleaner future.
The press release also highlighted that Nikola is yet to complete its review process for the third quarter financial results, which concluded on September 30, 2024. The company's annual report and subsequent SEC filings detail the risks and uncertainties that could impact future performance, including manufacturing delays, infrastructure rollout, and market conditions.
This news is based on a press release statement from Nikola Corporation. The company continues to advance its mission to transform over-the-road freight services and transportation through its Class 8 vehicles and energy solutions.
In other recent news, Nikola Corporation's founder, Trevor Milton, has been ordered to pay the company $167.7 million due to misleading public statements about the company's technology and operations. This ruling confirmed an arbitration panel's award from November 2023. In other developments, Nikola has appointed Thomas "Tom" Schmitt as its new Chief Commercial Officer, bringing over 35 years of experience in the transportation sector to the role.
These recent developments follow Nikola's announcement of significant progress in its second quarter 2024 earnings call. The company reported an 80% increase in hydrogen fuel cell electric truck sales from the previous quarter, totaling 72 trucks. However, despite a revenue of $31.3 million, Nikola reported a gross loss of $54.7 million.
In terms of stock outlook, DA Davidson recently revised Nikola's stock outlook, lowering the price target from $12 to $10, while maintaining a neutral rating. The firm cited concerns about Nikola's financial trajectory, pointing out a significant cash burn rate of $90 million in the second quarter. Despite these concerns, Nikola remains committed to expanding the hydrogen fuel infrastructure and improving its cash burn.
InvestingPro Insights
Nikola Corporation's recent achievement in meeting its sales target for hydrogen fuel cell electric trucks aligns with some key financial metrics and insights from InvestingPro.
According to InvestingPro data, Nikola's revenue for the last twelve months as of Q2 2024 stood at $48.62 million, with a significant quarterly revenue growth of 103.87% in Q2 2024. This growth trajectory supports the company's recent sales performance and suggests a positive trend in line with its stated objectives.
However, investors should note that Nikola is currently operating at a loss, with a gross profit margin of -567.8% for the last twelve months. This is reflected in an InvestingPro Tip which indicates that the company "suffers from weak gross profit margins." This metric underscores the challenges Nikola faces in achieving profitability as it scales its operations and production.
Another relevant InvestingPro Tip states that "analysts anticipate sales growth in the current year." This aligns with Nikola's recent sales performance and suggests potential for continued growth. However, it's important to balance this with another tip noting that "analysts do not anticipate the company will be profitable this year."
For investors seeking a more comprehensive analysis, InvestingPro offers 20 additional tips for Nikola Corporation, providing a deeper understanding of the company's financial health and market position.
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