EV startup Nikola reports jump in second-quarter deliveries, shares rise
Reuters
Published Jul 05, 2023 08:33AM ET
Updated Jul 05, 2023 10:35AM ET
(Reuters) -Nikola said on Wednesday that wholesale and retail sales of its electric vehicles jumped in the second quarter from the first, a positive sign for the startup that has been grappling with a cash crunch and stiff competition.
The company said retail sales of its trucks doubled to 66 in the quarter, while wholesale figure rose to 45 from 31.
Shares of Nikola were up nearly 3% in morning trading. They fell before the bell after the company announced on Monday it would start liquidating assets of Romeo Power less than a year after buying the battery maker.
Nikola agreed to buy Romeo Power in August for about $144 million, as it looked to jump-start efforts to make battery packs.
EV makers Tesla (NASDAQ:TSLA) and Rivian also beat market estimates for second-quarter deliveries.
Nikola, which went public in 2020, produced 33 trucks during the second quarter, compared with 63 trucks in the preceding quarter.
Like other smaller EV firms, Nikola has been struggling with a dwindling cash reserve and supply chain constraints that have hampered its efforts to ramp up production.
The company, which is involved in a dispute with its founder and top shareholder Trevor Milton, in May reported a bigger quarterly loss and said it would pause production to streamline the assembly line at its Coolidge, Arizona, factory amid sluggish demand for its battery-powered trucks.
The Phoenix-based automaker also said in June it would lay off a total of 270 employees, as it looks to cut costs and sharpen its focus on North America.
As of last close, the stock had fallen nearly 37% this year.
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Written By: Reuters
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