EV Truck Maker Nikola's Topline Plunges 30% in Q1 On Weak Demand, Stock Tanks

Nikola Corp NKLA stock declined after the company reported its fiscal first quarter 2024 results Tuesday. 

The company reported sales of $7.5 million, vs. $10.7 million a year ago, missing the analyst consensus estimate of $15.8 million.

Adjusted EPS loss of $(0.09) versus $(0.22) Y/Y, beat the analyst consensus loss estimate of $(0.10).

Nikola produced 43 trucks in the quarter compared to 63 a year ago and shipped 40 trucks compared to 31 a year ago.

Nikola maintained its dominant market share of HVIP vouchers for Class 8 FCEVs, ending the quarter with 362 of 367, or 99% of the unredeemed vouchers it requested from 2023 through March 2024. 

On the Class 8 BEV side, the company ended the first quarter with 85 unredeemed vouchers or 30% market share.

At the end of the first quarter, Nikola exceeded the high-end of the guidance range by delivering 40 fuel cell electric trucks (FCEVs), all designated for end fleets. That makes 75 wholesaled FCEVs in the first two quarters of serial production.

The company’s gross loss was $(57.6) million versus $(22.7) million a year ago. Adjusted EBITDA loss declined to $(104.0) million from $(103.7) million a year ago. 

NKLA’s net cash used for operating activities was $(115.6) million versus $(176.0) a year ago. The company held $346.9 million in cash and equivalents as of March 31, 2024.

Nikola postponed its delivery timeline for its reworked battery trucks to 2024 end from its earlier plan to complete it by the end of the second quarter or early third quarter, Reuters reports. 

The EV truck maker is struggling to sell its hydrogen big rigs as consumers and businesses turn to cheaper hybrid alternatives.

In April, M&M Residual withdrew its nomination of five candidates for election to Nikola’s board, citing alleged potentially fraudulent conduct, taking a toll on Nikola’s stock price.

Analysts have flagged Nikola’s potential medium-term hurdles, including inadequate charging infrastructure and steep hydrogen expenses that are hindering FCEV uptake.

Nikola has lost over 41% in the last 12 months. Investors can gain exposure to the stock via Direxion Moonshot Innovators ETF MOON and SPDR S&P Kensho Smart Mobility ETF HAIL.

Price Action: NKLA shares are trading lower by 9.93% at $0.5745 at the last check Tuesday.

Nikola Photo by VanderWolf Images on Shutterstock