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Nikola surpasses Q2 truck sales forecast with 72 units sold

Published 02/07/2024, 15:38
NKLA
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PHOENIX - Nikola (NASDAQ:NKLA) Corporation (NASDAQ:NKLA), known for its development of zero-emissions vehicles, has reported the sale of 72 Class 8 hydrogen fuel cell trucks under its HYLA brand for the second quarter of 2024, surpassing its projected guidance of 60 units.

The company, which specializes in zero-emissions transportation and energy infrastructure solutions, has seen a cumulative sale of 112 hydrogen fuel cell trucks for the first half of the year.

Nikola's CEO, Steve Girsky, commented on the achievement, highlighting the addition of new customers such as Walmart (NYSE:WMT) Canada and continued patronage from existing clients like 4GEN and IMC. Girsky emphasized Nikola's ongoing efforts to secure a leading position in the North American market for zero-emissions Class 8 trucks and its HYLA hydrogen refueling solutions.

All of Nikola's trucks are assembled at their manufacturing facility in Coolidge, Arizona. The company's mission is to lead the way in creating a zero-emissions world by transforming transportation and freight services. Nikola's product offerings include both battery-electric (BEV) and hydrogen fuel cell electric trucks (FCEV), as well as the HYLA brand, which focuses on the hydrogen refueling ecosystem, covering supply, distribution, and dispensing.

This information is based on a press release statement from Nikola Corporation.

In other recent news, Nikola Corporation announced a 1-for-30 reverse stock split, set to take effect after market close on June 24, 2024. This strategic move is intended to enhance the corporate structure of Nikola as it continues to navigate the electric vehicle market.

In addition, Nikola secured a significant order of 100 hydrogen fuel cell electric trucks from AiLO Logistics, marking a substantial move in the trucking industry's shift towards decarbonization.

However, Nikola's stock price target was recently reduced to $0.50 by TD Cowen following a disappointing first quarter for 2024. Meanwhile, Nikola has expanded its hydrogen refueling station network with a new facility in Long Beach, California, under its HYLA brand. This is part of the company's plan to establish up to nine refueling stations by mid-2024.

These are recent developments in the EV industry.

InvestingPro Insights

Nikola Corporation's recent announcement of surpassing its projected guidance for hydrogen fuel cell truck sales in Q2 2024 has been a positive development for the company. However, an in-depth look at the company's financial health and market performance through InvestingPro insights reveals some challenges that investors should be aware of.

One of the InvestingPro Tips for NKLA points out that the company is quickly burning through cash, which could be a concern for its operational sustainability. Additionally, analysts do not anticipate the company will be profitable this year, which is reflected in the company's negative gross profit margin over the last twelve months as of Q1 2024, standing at a staggering -762.26%. This underscores the importance of closely monitoring Nikola's financials and the execution of its business strategy.

InvestingPro Data also shows that NKLA's market capitalization is currently at 334.62 million USD, and the stock has experienced significant price volatility, with a price total return of -82.13% over the last year. The price is trading at just 6.65% of its 52-week high, indicating a sharp decline in investor confidence.

For readers interested in a more comprehensive analysis, there are additional InvestingPro Tips available at: https://www.investing.com/pro/NKLA. These tips can provide further insights into Nikola's market position, financial health, and stock performance. As an exclusive offer, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, which includes these valuable tips. There are 20 more tips listed in InvestingPro that can help investors make more informed decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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