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Nikola Stock Is Rising. The Company Is Making More Trucks.

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A Nikola Tre Bev truck.

Courtesy Nikola

Stock in the electric and hydrogen truck-technology firm


Nikola

is rising after the company reported better-than-expected third-quarter sales. The company is ramping up production—a good sign for any EV startup.

Wednesday,


Nikola

(ticker: NKLA) reported $24.2 million in sales, while Wall Street was expecting $22.7 million. The company didn’t have revenue in the third quarter of 2021 because it wasn’t making trucks yet.

Truck production began in March 2022.


Nikola

produced 50 battery-electric trucks in the second quarter and 75 in the third.

The company lost 28 cents a share in the third quarter, better than the 38 cents Wall Street was expecting, but with revenue still minimal, earnings don’t matter much yet. Initial production and the development of Nikola’s hydrogen-powered fuel cell trucks matter more to investors.

Nikola plans to eventually sell trucks that generate electricity from fuel cells that are powered by hydrogen gas. It intends to make both the trucks and the hydrogen gas, which it will sell at company-owned fueling stations.

Nikola ended the quarter with about $440 million in cash, down from about $566 million at the end of the second quarter.

In addition to producing more battery-electric trucks, “we also made significant advancements in developing our energy business, announcing our intent to develop access of up to 300 metric-tons per day of hydrogen and up to 60 stations by 2026, and our collaboration with


E.ON

in Europe,” said President Michael Lohscheller in the company’s news release.

In September, Nikola and the utility set up a partnership to develop infrastructure for producing hydrogen gas on the continent.

The stock was up almost 4% in early trading. The

S&P 500
and

Dow Jones Industrial Average
were down 1.1% and 0.7%, respectively.

Year to date, Nikola stock is off about 67%.

Write to Al Root at allen.root@dowjones.com

Nikola stock jumps 3% after narrower-than-expected loss and revenue beat

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