Stock Groups

Shares of EV start-up Nikola surge on earnings beat, revenue in 2022


San Pedro, CA, December 17th: Two zero-emission electric trucks were delivered by the Nikola Corporation from 100 units to Total Transportation Services in San Pedro. They arrived on Friday, December 17, 2021.

Brittany Murray | MediaNews Group | Getty Images

Shares Nikola Corp. surged Thursday by as much as 14% after the embattled electric vehicle start-up reported a narrower-than-expected loss during the fourth quarter and confirmed plans for truck production and revenue generation in 2022.

Pre-revenue business, that recently settled a federal probeInto misleading investors, the company reported an operating loss in excess of $90.4million, or 23c per share. According to Refinitiv analysts, this is lower than Wall Street expected loss of 32c per share.

Nikola stock shares fell to $7.44/share in midday trade, up about 9%. The stock’s intraday low at $6.41 was 16% lower than this price. This marked the 52nd week low.

Nikola claimed that the company expects to earn revenue of $90 to $150 million from 2022’s deliveries to its customers of between 300-500 of its first semitrucks powered by battery electrics.

Mark Russell, the CEO, said that non-prototype production at Coolidge’s truck plant will start on March 21. The company shipped its first non-saleable prototype model to dealers and customers in the fourth quarter.

Nikola stated that it made 30 prototypes in Arizona during the fourth quarter, however only five of them were actually commissioned because there was a delay in supply chain. According to the company, it delivered six additional trucks in this year’s first quarter.

Nikola’s stock led a wider increase of electric vehicle stocks on Thursday after a substantial spike in oil price due to the Russian invasion of Ukraine.

Chris McNally, Evercore ISI analyst said Thursday that he got additional information on “a key player in the new Clean Energy Transportation” in an investor letter.

McNally stated that Nikola beat Wall Street’s fourth-quarter guidance and results expectations, but long-term financing remains the “key question.”

End 2021, the company’s cash balance was $522 million. In 2022, it expects to spend $295 million to $305 million.

– CNBC’s Michael BloomThis report was contributed by you.