⌛ Did you miss ProPicks’ 13% gains in May? Subscribe now & catch June’s top AI-picked stocks early.Unlock Stocks

This Penny Stock EV Leaves Big Boys Tesla, Rivian And Lucid In The Dust With 14% YTD Gain

Published 05/04/2024, 12:23
Updated 05/04/2024, 13:40
© Reuters.  This Penny Stock EV Leaves Big Boys Tesla, Rivian And Lucid In The Dust With 14% YTD Gain

Benzinga - by Anan Ashraf, Benzinga Editor.

EV truck maker Nikola Corp (NASDAQ:NKLA) delivered 40 hydrogen fuel cell electric trucks in the first quarter, leading its shares to rally over 6% on Thursday. Given the low share price, even small increases translate into large percentage gains. But notably, Nikola’s stock is up 14.46% year-to-date, unlike most pure-play EV makers whose stocks have been falling.

Not An Easy Climb Back Up: However, Nikola’s path hasn’t been smooth. The company’s share value dropped from over $2 to below $1 in 2023 due to several setbacks, including multiple fire incidents with its battery-electric trucks, a subsequent recall, and executive reshuffles.

Nikola started delivering battery electric trucks before its hydrogen fuel cell trucks. However, the company recalled these vehicles in August following multiple fire incidents.

New BEV truck sales are currently halted as Nikola focuses on returning the recalled vehicles to customers.

Management Shuffles: The company also witnessed leadership changes, with Steve Girsky replacing Michael Lohscheller as CEO in August and Anastasiya Pasterick resigning as CFO after just a few months. Last month, former General Motors executive Thomas Okray was appointed as the new CFO.

For the whole of last year, Nikola produced a total of 38 trucks, less than the 258 it made in 2022. It reported a total revenue of $35.8 million and a gross loss of $214.1 million, higher than the $86 million loss reported in 2022.

However, the stock has been on an upward trend since the start of 2024, likely due to the sales of its hydrogen trucks and the anticipated return of its recalled BEVs. In February, Girsky stated that deliveries of fixed BEV trucks would restart in late Q3 or early Q4 of 2024. All recalled vehicles are projected to be back with customers by the end of Q2 or early Q3.

Traditional Automakers vs. EV Startups

Unlike established automakers like General Motors and Ford who produce both EVs and gas-powered vehicles, Nikola joins U.S. companies like Tesla Inc (NASDAQ:TSLA), Rivian Automotive Inc. (NASDAQ:RIVN), and Lucid Group Inc. (NASDAQ:LCID) in focusing solely on EVs.

Tesla shares are down 31.1% year-to-date, while Rivian and Lucid have slumped 52% and 36.1% respectively, reflecting concerns about a potential slowdown in electric vehicle demand.

Tesla reported an 8.5% year-over-year decline in Q1 sales, delivering 386,810 vehicles. While Rivian has managed to scale Q1 deliveries year-on-year, the company’s production target for the whole year remains around 57,000 units, similar to 2023. Both Rivian and Lucid continue to struggle with scaling production profitably and are losing money on each vehicle delivered.

In contrast, General Motors and Ford’s stock prices have risen 21.2% and 8.6% respectively.

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

Read More: EV Charging Will Soon Be A ‘Necessity’ Over ‘Amenity’ For Workplaces To Retain Employees, Says Senior Tesla Exec

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.