- The company’s founder and outdated govt chairman became once indicted on fraud charges final week.
- Alternate headwinds will straight possess an impression on its progress this year.
What took space
Battery and hydrogen fuel cell electric truck maker Nikola (NASDAQ:NKLA) reported its 2nd-quarter financial replace this morning, and investors are reacting strongly. Shares at the foundation spiked as the company reported a smaller loss than analysts expected. However the stock fleet reversed direction when the company gave its outlook. At 11: 45 a.m. EDT, Nikola shares were down about 7.7%, halt to its lows of the day.
Nikola reported a accumulate loss of $0.20 per share, which became once better than expectations of a $0.29 loss. However principal aspects connected to production and income possibilities for the leisure of 2021 spooked investors. The company had beforehand forecast income of between $15 million and $30 million this year, however now says that provide chain concerns forced it to decrease that differ to between $0 and $7.5 million, essentially essentially based on CNBC.
Nikola Tre battery electric semi truck. Image provide: Nikola.
Nikola CEO Mark Russell mentioned on the company’s convention name with investors that provide disruptions will imply the company expects to elevate no longer more than 50 units this year. It beforehand mentioned it might doubtless doubtless elevate between 50 and 100 units for the year.
The slowdown in progress in direction of preliminary commercial production also comes a week after Trevor Milton, the company’s founder and outdated govt chairman, became once indicted for misleading investors about Nikola’s technology final year.
The company replied to that news with a press begin reminding investors that Milton has no longer been fascinated by Nikola’s operations or communications since he resigned in Sept. 2020. It also highlighted that the fees were in opposition to Milton in my notion, and no longer in opposition to the company. However it absolutely is soundless a stain on the company’s reputation and leaves investors with some uncertainty as to whether or no longer the investigation might doubtless doubtless lengthen to incorporate present staff.
That possibility, along with a slowdown in its progress to commercialize its products, has investors promoting the stock this day.
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Howard Smith owns shares of Nikola Corporation. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.”>