Nikola slashes annual outlook on supply chain issues, shares drop
Reuters
Published Aug 03, 2021 12:13PM ET
Updated Aug 03, 2021 12:27PM ET
(Reuters) - Nikola Corp on Tuesday halved its annual deliveries estimate and slashed its revenue forecast as supply chain issues drove delays in receiving certain parts, dragging the electric-truck maker's shares down 7.6%.
The supply constraints could affect the validation, testing and delivery timeline of its vehicles, Nikola said. It now expects revenue of up to $7.5 million for the year versus an earlier estimate of $15 million to $30 million.
A prolonged global chip shortage had caught major automakers including Ford Motor (NYSE:F), Honda Motor, General Motors (NYSE:GM) and Volkswagen (DE:VOWG_p) off guard, forcing many to idle or delay production.
Nikola's earnings report comes days after Founder Trevor Milton was criminally charged with defrauding investors by lying to them about the electric- and hydrogen-powered truck maker's products and technology.
Milton's indictment is a "potential distraction", the company said on Tuesday.
Nikola now expects full-year deliveries between 25 and 50, down from 50 to 100 vehicles earlier.
The delivery outlook represents "trucks in customers' hands for freight delivery on public roads and may not represent saleable vehicles," the company said.
Excluding items, the company posted a loss of 20 cents per share, narrower than analysts' expectations for a loss of 29 cents per share, according to IBES data from Refinitiv.
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Written By: Reuters
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