Nikola Stock Falls After Q2 Topline Decline, Abrupt CEO Transition

Nikola Corp NKLA reported second-quarter FY23 sales of $15.36 million, down by 15.3% year-on-year, marginally missing the consensus of $15.43 million.

The company's gross loss was $(27.6) million versus $(29.3) million a year ago.

Adjusted EBITDA loss expanded to $(125.1) million from $(95.6) million a year ago. Adjusted EPS loss of $(0.20) beat the consensus loss of $(0.22).

NKLA's net cash used in operating activities was $(111.1) million versus $(142.5) million a year ago. The company held $227.3 million in cash and equivalents.

Nikola produced 33 trucks in Q2, down from 50 last year. It shipped 45 trucks, down from 48 in the same period in 2022.

Nikola said, to date, 18 customers have placed orders for over 200 hydrogen fuel cell electric trucks with Nikola and dealers. 

During the second quarter, the remainder of the 10 gamma trucks were fully built and commissioned. Gamma trucks will be used in final vehicle validation and customer pilot testing.

"Nikola has turned the corner and is well on the way to executing our business plan and achieving profitability," said Nikola CEO Michael Lohscheller. "We have nearly doubled our unrestricted cash position while substantially reducing our spending. 

CEO Transition: The company also disclosed that CEO Michael Lohscheller would immediately step down, allowing Chairman Stephen Girsky to lead.

Girsky will continue serving on the Board of Directors, while Steve Shindler, a director since October 2020, became the Chairman of the Board.

Price Action: NKLA shares are trading lower by 10.6% at $3.03 on the last check Friday.

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