Nikola’s CEO insists that the automaker has had a “very solid quarter” in Q1 2023. However, its increasing financial losses, and production halt, JV dissolution, among others, implies the opposite.
The press release noted that Nikola recorded an overall revenue of $11.1 million in the first quarter of the year, indicating a significant growth from 2022’s record of $1.8 million. However, its enormous net losses of $169 million can substantially discredit that. For reference, Nikola lost $152.9 million in Q1 2022.
Despite these disappointing data, Nikola CEO Michael Lohscheller argued that the automaker is “on the right path with our re-energized management and commercial teams.”
Nikola halts electric Tre production
Notably, the executive’s confidence may be partially influenced by the performance of Nikola’s hydrogen fuel cell truck.
For context, Nikola has secured 140 orders for the hydrogen-based Tre e-truck despite not beginning production until July.
However, demand for the electric-powered model is currently stagnating. Nikola produced 63 electric Tre units in Q1 2023 but only sold 33.
As a result, Nikola has announced that it will now halt the production of the electric truck.
“As we have sufficient inventory of the battery electric truck, we will temporarily pause production in Coolidge, [Arizona,] as we modify the assembly line to accommodate both hydrogen fuel cell and battery electric builds on the same line. After we resume production in Coolidge, the battery electric Tre will remain in our lineup as a build-to-order product.”
Nikola
That said, the battery-powered Tre will only be available as a made-to-order product.
Joint venture dissolution with Iveco
Iveco will take over the joint venture it established with Nikola in 2019.
The automaker declared that it would sell all its stakes in the JV to its co-founder Iveco to raise money for the plant’s development and other operations.
The company claims it would instead concentrate on the US market, where regulations progressively require heavy-duty trucks without internal combustion engines, particularly in California.
“We have the right products at the right time, and as we move forward, we will be focusing on the North American market, hydrogen fuel cell trucks, the HYLA hydrogen refueling business, and autonomous technologies.”
Nikola CEO Michael Lohscheller
Furthermore, Nikola disclosed that it secured $35 million in cash and 20.6 million shares of its own company’s common stock back from Iveco in exchange for its portion of the JV.
Nonetheless, Nikola assured that relations with the Italian commercial automaker are still cordial.
See Also:
- Nikola to be the first US truck maker to employ 9PlusDrive to Class 8 e-trucks
- Nikola and KeyState to collaborate on hydrogen supply
- Nikola plans to bring 60 hydrogen stations by 2026, aided by IRA and state-level incentives
- Nikola Agrees to buy Battery supplier Romeo Power for $144 Million
- How EV-related stocks changed in January 2023
Nikola’s stock has fallen over 15% since the Q1 2023 earnings release.
