May 21, 2024

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NKLA stock slumps due to delivery warning from Nikola EV; Rivian, Lucid on Deck

Nikola Semi Truck

Nicola (NKLA) warned against electric vehicle deliveries due to deteriorating economic conditions after widening losses in the third quarter but easily exceeded estimates. NKLA stock is down.


The EV startup on Thursday called for its main production target for the year, while beating third-quarter earnings and revenue estimates. It now expects to deliver less than 300 heavy duty electric trucks by the end of 2022, down from the previous target of 300-500.

Deliveries are trending lower than expected in the current fourth quarter, CFO Nicola Kim Brady said Thursday in an earnings call with analysts.

“We expect these headwinds to continue to be an important limiting factor in the rate of customer uptake of Tre BEVs, especially for the rest of this year and potentially into 2023,” Brady added, referring to customer reluctance in the current environment.

Early Thursday, Nikola said it produced 75 heavy-duty electric trucks in the third quarter, up from 50 in the second quarter and raising its 2022 balance to 125. It delivered 63 to dealers, up from 48 in the second quarter.

It also reported progress on hydrogen production and infrastructure goals.

Nikola’s earnings

In the third quarter, Nikola lost 28 cents a share, versus 22 cents a year earlier. It generated $24.2 million in revenue, up from $18.1 million in the previous quarter. No revenue last year.

At the end of the third quarter, Nikola reported $404 million in cash in the fund, down from $587 million at the end of the previous quarter.

Analysts polled by FactSet had expected a stock loss of 38 cents on revenue of $22.7 million.

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EV Associates Startups Lucid (LCID) And the Rivian (countryside) on November 8 and November 9, respectively.

late on wednesday, Fisker (FSR) achieved a larger loss than expected in the third quarter. But Fisker confirmed that it will begin production of the highly anticipated Ocean SUV on November 17. Ocean bookings and orders totaled 62,000 at the end of October, the EV startup said.

NKLA Stock, the new EV stock

Nikola shares fell 10.9% to 2.94 in stock market today, trimming strong early gains. Nikola is testing the 21-day moving average but it remains well below the longer-term averages, and more than 80% from its 52-week high.

Fisker’s stock turned nearly 3% Thursday. LCID stock rose 2.3% to 13.64 and RIVN stock rose 2.33% to 32.24.

A wave of new electric car stocks, including Nikola and Rivian, has emerged in the past 2-3 years as investors have been looking ahead to the year ahead. Tesla (TSLA).

On October 14, Nikola completed the acquisition of battery maker Romeo Power.

NKLA’s stock was hit hard by the 2020 short-selling report. Its former CEO was recently convicted of fraud, but the EV startup is viewed more favorably under new management.

Tesla plans to offer some Tesla Semi cars to PepsiCo (PEP) on December 1. It is not clear what will be the future production of the semi-auto, which was first unveiled in 2017.

Tesla stock rose 0.2% to 215.31 Thursday.

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