Nikola Stock Is Rising Tuesday: What's Going On?

Nikola Corp NKLA shares are trading higher Tuesday after the company provided an update on its business optimization efforts.

What Happened: Late Friday, Nikola said it plans to streamline its operations and decrease its cash spend in order to continue to optimize its business.

The company's annual cash usage is expected to decrease to under $400 million by 2024. Nikola also plans to reorganize its workforce to eliminate non-essential spending and support its new areas of focus. The company said it will reduce its headcount, which is expected to decrease cash spend by more than $50 million per year. 

"Nikola has initiated a more focused business plan this quarter, concentrating on North America, zero-emission truck production, and our HYLA hydrogen business," said Michael Lohscheller, CEO of Nikola.

"Our battery-electric truck is in the marketplace and performing well for our customers, and the hydrogen fuel cell electric truck will go into production in a matter of weeks."

Nikola noted that the planned launch of its hydrogen fuel cell electric truck remains on schedule for the third quarter. 

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NKLA Price Action: Nikola shares have rallied nearly 50% over the last month.

The stock was up 6.72% at $1.27 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Nikola.