Nikola Corporation, a prominent player in the global zero-emissions transportation and energy sector, unveiled its financial results for the third quarter (Q3) of 2023. Despite grappling with a voluntary recall, the company experienced robust demand for its zero-emissions trucks and successfully raised a substantial $250 million during the Q3 2023,. This surge tripled the company’s unrestricted cash reserves since the first quarter of 2023. In response to this positive development, the stock of Nikola is experiencing a significant upswing today, compared to yesterday’s closing price of $1.05.
At the time of this publication, Nikola Corp stock (NKLA) has witnessed a surge.
Nikola Corp
Current Price: $1.11
Change : +0.06
Change (%): (5.72%)
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In terms of financials, Nikola reported a net loss of $425.7 million in its Q3 2023 results, in contrast to a net loss of $236.2 million in the corresponding period of the previous year. Total revenues of Nikola dipped into the negative territory, registering at -$1.7 million, compared to $24.2 million in Q3 of 2022. The gross loss for the quarter stood at $125.5 million, a notable increase from the $30.2 million recorded in Q3 2022.
During the quarter under review, Nikola successfully secured a capital injection of $250 million, bolstering its unrestricted cash reserves by an impressive $136.2 million and tripling the available cash since the first quarter of the year. Despite a recall affecting one of its truck models, the company garnered purchase orders for 47 battery-electric trucks from a single dealer. Nikola, along with its dealers, have received a total of 277 non-binding orders from 35 customers for their hydrogen fuel cell electric truck.
Nikola Corp (NKLA, Financial) remains committed to realigning its business model for optimal resource allocation. The company is strategically positioned to leverage the robust industry momentum driving the adoption of zero-emissions vehicles. With the introduction of its hydrogen fuel cell electric truck, Nikola is focusing on establishing a robust supply chain for hydrogen and developing comprehensive fueling solutions to support its customers’ operations.
Looking ahead, the company foresees the resumption of battery-electric truck deliveries to customers in the first quarter of 2024. The costs associated with the recall and subsequent repairs are estimated to be approximately $61.8 million, which encompasses expenses related to re-engineering, validation, and retrofitting of the previously sold battery-electric trucks equipped with an alternative battery pack solution.
