Nikola notes quarterly jump in deliveries of electric vehicles
Like other smaller EV firms, Nikola has been battling a dwindling cash reserve and supply chain issues
05 July 2023 - 17:22
byTiyashi Datta
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Nikola founder Trevor Milton exits court in New York, US, in this file picture from September 12 2022. Picture: BLOOMBERG/STEPHEN YANG
Nikola said on Wednesday that wholesale and retail sales of its electric vehicles jumped in the second quarter from the first, a positive sign for the startup that has been grappling with a cash crunch and stiff competition.
The company said retail sales of its trucks doubled to 66 in the quarter, while the wholesale figure rose to 45 from 31.
Shares of Nikola were up nearly 3% in morning trade on Wednesday. They fell before the bell after the company announced on Monday it would start liquidating assets of Romeo Power less than a year after buying the battery maker.
Nikola agreed to buy Romeo Power in August for about $144m, as it looked to jump-start efforts to make battery packs.
EV makers Tesla and Rivian also beat market estimates for second-quarter deliveries.
Nikola, which went public in 2020, produced 33 trucks during the second quarter, compared with 63 trucks in the preceding quarter.
Like other smaller EV firms, Nikola has been struggling with a dwindling cash reserve and supply chain constraints that have hampered its efforts to ramp up production.
The company, which is involved in a dispute with its founder and top shareholder, Trevor Milton, reported a bigger quarterly loss in May and said it would pause production to streamline the assembly line at its US factory, amid sluggish demand for its battery-powered trucks.
The vehicle maker also said in June it would lay off a total of 270 employees, as it looks to cut costs and sharpen its focus on North America.
As of last close, the stock had fallen nearly 37% in 2023.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Nikola notes quarterly jump in deliveries of electric vehicles
Like other smaller EV firms, Nikola has been battling a dwindling cash reserve and supply chain issues
Nikola said on Wednesday that wholesale and retail sales of its electric vehicles jumped in the second quarter from the first, a positive sign for the startup that has been grappling with a cash crunch and stiff competition.
The company said retail sales of its trucks doubled to 66 in the quarter, while the wholesale figure rose to 45 from 31.
Shares of Nikola were up nearly 3% in morning trade on Wednesday. They fell before the bell after the company announced on Monday it would start liquidating assets of Romeo Power less than a year after buying the battery maker.
Nikola agreed to buy Romeo Power in August for about $144m, as it looked to jump-start efforts to make battery packs.
EV makers Tesla and Rivian also beat market estimates for second-quarter deliveries.
Nikola, which went public in 2020, produced 33 trucks during the second quarter, compared with 63 trucks in the preceding quarter.
Like other smaller EV firms, Nikola has been struggling with a dwindling cash reserve and supply chain constraints that have hampered its efforts to ramp up production.
The company, which is involved in a dispute with its founder and top shareholder, Trevor Milton, reported a bigger quarterly loss in May and said it would pause production to streamline the assembly line at its US factory, amid sluggish demand for its battery-powered trucks.
The vehicle maker also said in June it would lay off a total of 270 employees, as it looks to cut costs and sharpen its focus on North America.
As of last close, the stock had fallen nearly 37% in 2023.
Reuters
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