On November 2, 2023, Nikola Corporation (Nasdaq: NKLA), a global leader in zero-emissions transportation and energy supply and infrastructure solutions, reported its financial results for Q3 2023. Despite a voluntary recall, the company saw strong demand for its zero-emissions trucks and raised $250M during the quarter, tripling its unrestricted cash since Q1 2023.
Financial Highlights
The company reported a net loss of $425.7M in Q3 2023, compared to a net loss of $236.2M in Q3 2022. Total revenues were negative at $1.7M, compared to $24.2M in the same period last year. The gross loss was $125.5M, compared to a gross loss of $30.2M in Q3 2022.
During the quarter, the company raised $250M, increasing unrestricted cash by $136.2M, and tripling unrestricted cash since Q1 2023. The company also received purchase orders for 47 battery-electric trucks from one dealer, despite the truck being in recall. To date, Nikola and its dealers have received 277 non-binding orders from 35 customers for the hydrogen fuel cell electric truck.
Management Commentary
“We are driving forward, capitalizing on our first-mover advantage with our hydrogen fuel cell electric truck and laying the foundation for the ‘hydrogen highway’ starting in California,” said Nikola CEO Steve Girsky. “We think the competition is well behind us and believe there is white space for us to capture market share with the introduction of the Advanced Clean Fleets Rule, and incentives like HVIP and ISEF offering up to $288,000 and $408,000, respectively, per hydrogen fuel cell electric truck in California.”
Outlook
Nikola Corp (NKLA, Financial) continues to refocus its business model to ensure efficient allocation of resources. The company is also capitalizing on strong industry tailwinds promoting the adoption of zero-emissions vehicles. With the launch of the hydrogen fuel cell electric truck, the company is focused on ensuring it has adequate hydrogen supply and fueling solutions to support customer operations.
The company anticipates delivering battery-electric trucks to customers again in Q1 2024. The costs to Nikola for the recall and repair are expected to be approximately $61.8M, which includes the estimated cost to re-engineer, validate, and retrofit the battery-electric trucks that were previously sold with an alternative battery pack solution.
Explore the complete 8-K earnings release (here) from Nikola Corp for further details.
