By
Steve Muchoki
October 25th, 2023
Nikola’s second-quarter results not only revealed insights into its financial situation but also demonstrated the company’s aggressive measures to strengthen its financial base.
Electric truck manufacturer Nikola Corp (NASDAQ: NKLA) has announced the immediate departure of its CEO, Michael Lohscheller, alongside the release of its second-quarter financial report.
A New Chapter Begins for Nikola
Lohscheller’s decision ascribed to a “family health matter”, has prompted the company’s existing board chair, former General Motors vice chairman Steve Girsky, to take over as CEO. Nikola outlined per a CNBC report that Lohscheller would remain in an advisory capacity until the end of September to ensure a smooth transition.
Accompanying the leadership transition was Nikola’s second-quarter earnings report, providing insight into the company’s financial performance over the past quarter. In terms of net loss per share, Nikola managed to surpass estimates, reporting a loss of 20 cents per share.
This exceeded Refinitiv’s projected loss of 22 cents per share. On the other hand, the company’s net revenue for the quarter was reported at $15.36 million, slightly lower than the estimated $15.4 million.
A closer look at Nikola’s financial numbers reveals a net loss of $217.8 million for the quarter or 31 cents per share. It is important to note that this stated net loss includes a significant charge of $77.8 million, or 11 cents per share. This fee is for ceased operations, notably the shutdown of the defunct Romeo Power battery-pack manufacturing in California.
Comparing the current results to the previous year’s data, Nikola’s financial landscape has undergone changes. A year ago, the company reported a loss of $173 million, or 41 cents per share.
On an adjusted basis, it incurred a loss of 25 cents per share in the same period of the previous year. Revenue for the quarter was $15.4 million, a decrease from $18.1 million reported in Q2 of 2022.
Nikola’s Q2 2023 Report
Nikola’s second-quarter results not only revealed insights into its financial situation but also demonstrated the company’s aggressive measures to strengthen its financial base.
During the quarter, Nikola successfully raised $233.2 million in cash through stock sales and the sale of certain physical assets. This capital infusion contributed to an extraordinary growth in the company’s cash on hand, which stood at $226.7 million as of June 30, up from $121.1 million on March 31.
Nikola said it delivered 45 battery-electric semitrucks to dealers, as well as the sale of 66 of these vehicles to end users. This achievement represents Nikola’s best quarterly retail performance to date, underscoring the demand for its cutting-edge electric trucks.
However, the company announced the halt of production of battery-electric trucks in May to seamlessly integrate the assembly of both battery-electric and fuel-cell trucks on the same line.
Nikola’s latest model, a longer-range fuel-cell-powered version of its Tre semitruck, went into production on July 31; deliveries are slated to begin in September. Notably, Nikola has received orders for 202 fuel-cell trucks from 18 fleet clients, the company announced earlier this week.