Nikola warned on EV deliveries due to worsening economic conditions after losses widened in the third quarter but handily beat estimates. NKLA stock tumbled.
The EV startup on Thursday dialed back a key output target for the year, while beating Q3 earnings and revenue estimates. It now expects to deliver fewer than 300 heavy electric trucks by the end of 2022, down from a prior target of 300-500.
Deliveries are trending lower than expected in the current fourth quarter, Nikola CFO Kim Brady said Thursday on an earnings call with analysts.
Citing customer hesitancy in the current environment, Brady added: "We anticipate these headwinds will continue to be a significant limiting factor in the customer uptake rate for the Tre BEVs, especially for the remainder of this year and likely through 2023."
Early Thursday, Nikola said it produced 75 heavy electric trucks in Q3, up from 50 in Q2 and taking its 2022 tally to 125. It delivered 63 to dealers, up from 48 in Q2.
It also reported progress on hydrogen production and infrastructure goals.
Nikola Earnings
In Q3, Nikola lost 28 cents per share vs. 22 cents a year ago. It generated $24.2 million in revenue, up from $18.1 million in the prior quarter. There is no year-ago revenue.
At the end of Q3, Nikola reported $404 million in cash on hand, down from $587 million at the end of the prior quarter.
Analysts polled by FactSet had expected a per-share loss of 38 cents and revenue of $22.7 million.
Fellow EV startups Lucid and Rivian report on Nov. 8 and Nov. 9, respectively.
Late Wednesday, Fisker delivered a bigger-than-expected Q3 loss. But Fisker confirmed it will start producing the highly anticipated Ocean SUV on Nov. 17. Ocean reservations and order totaled 62,000 at the end of October, the EV startup said.
NKLA Stock, New EV stocks
Shares of Nikola reversed 10.9% lower to 2.94 on the stock market today, paring back strong early gains. Nikola is testing the 21-day moving average but remains far below longer-term averages, and more than 80% off its 52-week high.
Fisker stock turned nearly 3% lower Thursday. LCID stock rose 2.3% to 13.64 and RIVN stock climbed 2.33% to 32.24.
A wave of new EV stocks, including Nikola and Rivian, emerged in the last 2-3 years as investors looked for the next Tesla.
On Oct. 14, Nikola completed the acquisition of battery maker Romeo Power.
NKLA stock was hit hard by a short-seller report in 2020. Its former CEO was recently convicted of fraud, but the EV startup is being seen more favorably under new management.
Tesla plans to deliver some Tesla Semi vehicles to PepsiCo on Dec. 1. It's unclear what future production will be for the Semi, first unveiled in 2017.
Tesla stock added 0.2% to 215.31 Thursday.
