Why Nikola Corporation Shares Are Trading Lower Today

Nikola Corporation NKLA shares are trading lower following worse-than-expected Q1 revenues.

What Happened: On Tuesday prior to market open, Nikola reported its results for the period ending March 31, 2023. Nikola reported quarterly sales of $11.12 million compared to the analyst consensus estimate of $12.51 million, representing a negative sales surprise of 11.14%. The company reported quarterly earnings (losses) of $(0.26) per share, in line with the analyst consensus estimate and a 23.8% decrease from the same period last year.

Additionally, Nikola announced its intentions to refocus its business on the North American market. The company plans to move away from its manufacturing and energy businesses, selling its stake in its European manufacturing joint venture to Iveco Group for $35 million cash and the return of 20.6 million shares of Nikola held by Iveco.

"We have the right products at the right time, and as we move forward, we will be focusing on the North American market, hydrogen fuel cell trucks, the HYLA hydrogen refueling business, and autonomous technologies," noted Nikola CEO Michael Lohscheller.

Nikola Corporation is globally transforming the transportation industry as a designer and manufacturer of zero-emission battery-electric and hydrogen-electric vehicles, electric vehicle drivetrains, vehicle components, energy storage systems, and hydrogen station infrastructure.

According to data from Benzinga Pro, Nikola Corporation shares were down 11.7%, trading at $0.87 at the time of publication. The stock has a 52-week high of $8.97 and a 52-week low of $0.79.