The manufacturer of electric trucks, Nikola published its third quarter accounts beating analysts’ expectations. The company led by Michael Lohscheller claimed to have produced 75 truck in Q3 and to have delivered 63, generating enough profits to beat Wall Street expectations. The company has benefited from the shift to electric trucks by logistics companies seeking to reduce cost of ownership and meet sustainability goals. Visible Alpha analysts had expected production of 70 units compared to the actual 75.
Since the beginning of the year, the company has delivered 111 trucks and therefore will not be able to produce and deliver the previous targets set, i.e. between 300 and 500 units in 2022. The electric truck manufacturer is also looking to take advantage of the new law, Inflation Reduction Act recently approved to reduce costs in hydrogen power and production activities.
The title returned to the red, losing 7% a $ 3.06 per share after starting the session up 10%.
The numbers of Nikola’s Q3
The net loss was reduced to 236.2 million dollars, or 54 cents per share, in the quarter ended September 30, compared to $ 267.57 million, or 68 cents per share, the previous year. As for revenues, the electric truck manufacturer posted 24.2 million dollars compared to the 22.1 million expectations of analysts.
The CEO, Michael Lohscheller stated that Nikola did “significant progressIn building a hydrogen refueling network ahead of the planned launch of the fuel cell powered trucks next year. The company said last month that it is working to have access to up to 300 tons of hydrogen per day, as it aims to have 60 fueling stations operational by 2026.
In addition, Nikola said it is on track to complete 17 “beta”, or pre-production, fuel cell trucks by the end of 2022. The company built 6 in the third quarter; those trucks will be used for pilot testing with Walmart and other truck fleet operators.
Nikola said it had approximately $ 404 million in cash at the end of the quarter, down from approximately $ 587 million in the quarter ended June 30. The company said the total included $ 100.5 million raised through an “at-the-market” stock offering.
In August, the company filed a registration statement allowing it to raise a total of $ 400 million through the sale of new shares from time to time.
While in October, Nikola completed the acquisition of one of its battery suppliers, Romeo Power. Nikola said bringing Romeo’s operations into the company could save the company up to $ 350 million over the next four years. Recall that the electric truck manufacturer paid $ 144 million in shares for Romeo.