Nikola Says Trial Production Planned For Q2 2021, GM Deal Talks Continue

Former SPAC Nikola Corporation NKLA was in the spotlight Monday after reporting third-quarter earnings and updates on production.

Earnings Report: Nikola announced a net loss of 16 cents per share in the third quarter. This beat street consensus of a loss of 19 cents.

The company redeemed warrants for $263 million in cash in the third quarter. Nikola’s cash balance was $908 million at the end of the third quarter.

Production Progress: Nikola announced it completed the first assembly of a Nikola Tre BEV testing vehicle at the Iveco manufacturing facility in Germany.

Iveco, a unit of CNH Industrial CNHI, and Nikola are working on five prototypes at this plant.

Validation testing will begin in the first quarter of 2021.

“We delivered on our commitment to assemble the first Nikola Tre BEV prototypes and are continuing to work with customers on the prospective and previously announced BEV truck orders,” said CEO Mark Russell.

Nikola broke ground for its Arizona manufacturing facility. The plant is on track to be completed by the end of 2021.

Nikola said it plans to begin trial production in the second or third quarter of 2021.

GM Deal: Nikola highlighted the partnership it signed with General Motors Company GM in September.

The deal would include equity in the company from General Motors.

“The transaction has not closed, and Nikola is continuing its discussions with General Motors. Nikola will provide further updates when appropriate or required,” read the release.

The deadline to sign a deal was extended with a current decision date of Dec. 3.

GM CEO Mary Barra helped shares of Nikola last week by saying discussions between the two were continuing.

Price Action: Nikola shares closed down 5% to $18.73. Shares were trading 2% higher to $18.95 in the after-hours trading.