Troubled zero emission truck start up, Nikola has reportedly doubled its revenue and increased production numbers for its fuel-cell battery electric trucks in the second quarter, boosting hopes and its share price.
Nikola has reported it generated $AUD47.4 million ($US31.3 million) in revenue in the second quarter, exceeding Wall Street analyst’s expectations of $AUD39.5 million ($US26.1 million).
The result was also an increase of $AUD24.07 million ( $US15.9 million ) or more than 100 per cent on the $AUD23.3 million ($US15.4 million) it generated in the same quarter last year.
Nikola’s quarterly revenue result is reportedly the best in its history and was driven by more wholesale deliveries and higher truck prices, with the company increasing the price of its trucks by around $AUD10,600 ($US7000), with the sticker price now at around $AUD587,000 ($US388,000),
Nikola reported that it produced 77 hydrogen fuel-cell trucks and delivered 72 to its dealer network during the quarter, which exceeded the company’s forecasts which had predicted that it would sell between 50 and 60 trucks.
“Wholesale deliveries were up 80 per cent from Q1 and comprised of several repeat customers, which is a testament to the performance of our trucks and customer satisfaction,” said Nikola CEO Steve Girsky.
Despite the trading improvements the company still reported a net loss of $AUD202 million ($AUD133.6 million) in the quarter. and even though it is a large amount it marks an improvement on the net loss of $AUD 329.8 million ($US217.8 million) imposted in the second quarter in 2023.
Nikola was able to regain Nasdaq compliance in July following its completion of a 1-for-30 reverse stock split, which was intended to increase the company’s share price. Nikola’s share price had previously dropped below Nasdaq’s minimum price of $US1 per share.
Although its profitability is gaining momentum Nikola says it remains focused on optimising its costs according to CEO Girsky.
“We have to keep in mind, though, accepting this new technology takes time and education, but, the bottom line, our high-touch sales team and the dealer network are making inroads with the national accounts, with more demos and discussions in process and more to come,” Girsky said.
“Nikola is in a “unique position” to attract prospective partners and the company is receiving calls from automotive manufacturers, suppliers, hydrogen producers and large energy companies,” Girsky said.
The company announced it had taken order for ten hydrogen fuel cell trucks from a major waterfront logistics company, IMC Logistics, headquartered in Tennessee, bringing the total in its fleet to 30 Nikolas, as well as a significant sale to retail giant Walmart Canada along with repeat orders from two national accounts.
“Many of these orders are important because they are the first order for hydrogen fuel cell trucks for their respective fleets,” Girsky said.
“They are testing the new technology and demonstrating that they are committed to growing with us,” he added.
Nikola ialso reported it s on track to open 14 hydrogen refueling stations across America by the end of this year.
It reports that the refuelling stations would consist of modular fuelers, with partner stations in California and Canada and at Nikola’s Coolidge manufacturing facility sin Arizona. The company said it plans to open its newest hydrogen refueling station at Santa Fe Springs in California this month.
The refueling stations are the first step in the company’s plans to create what it describes as a “hydrogen highway” to support its hydrogen fuel-cell trucks along freeway interchanges and freight routes in Southern California.
“Ontario and the surrounding area near the Port of Los Angeles and the Port of Long Beach have proven to be critical refueling areas that are amassing density quickly,” Girsky said.
