Nikola Stock Jumps After Backing Key Production, Delivery Goals

Nikola (NKLA) topped first-quarter forecasts Friday and maintained timelines for production and delivery milestones. Nikola stock surged.

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Nikola Earnings Report

Estimates: Analysts expected a loss of 27 cents per share on no revenue.

Results: Loss of 14 cents a share with no revenue. During Q1, the first batch of five battery-electric Tre semi trucks were commissioned and began validation testing.

Nikola is also nearing completion of the second batch of nine beta battery-electric Tres in Germany as well as a second batch in the U.S.

The company also revealed it received a new subpoena from the Securities and Exchange Commission in March about its projected cash flow and plans to use funds after raising more capital this year.

Outlook: Management maintained key guidance, including the start of vehicle trial production in Germany in June and in Arizona in July. And Nikola still expects to deliver the first battery-electric Tres to customers during Q4.

In February, CEO Mark Russell predicted 50-100 battery-electric Tre deliveries in 2021, generating $15 million-$30 million in revenue.

On Friday, he warned battery cell providers aren’t taking orders for 2022 amid a supply crunch. Still, Nikola plans to deliver 1,200 battery-electri trucks next year and 3,500 in 2023.

Stock: Shares rallied 13.4% to close at 11.50 on the stock market today. Nikola stock has been on in a downturn for several months and is well off a high of 93.99 reached in June.

Among other top fuel cell stocks, Fuelcell Energy (FCEL) rose 3%, and Plug Power (PLUG) added 2.2%. Ballard Power (BLDP) gained 1.65% after sinking 19.7% Tuesday on disappointing Q1 results.

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Green Trends Favor Nikola Stock

Beyond 2021, other important dates for Nikola stock are coming up. After the battery-electric Tre, with 300 miles of range, begins deliveries in Q4, a hydrogen fuel-cell version, with a range up to 500 miles, will follow in the second half of 2023.

Nikola also is targeting the launch of another fuel-cell semi truck — the Two — with up to 900 miles of range in late 2024.

Ahead of the earnings report, Nikola received a conditional order for 100 battery-electric and fuel-cell trucks. To expedite zero-emission transport at the Port of Los Angeles and Long Beach, Total Transportation Services signed a letter of intent to order 100 Nikola Class 8 semi-trucks of both types.

A four-truck pilot program will start in the first half of 2022, consisting of two battery-electric trucks and two fuel-cell trucks. If that works out and if Total Transportation Services gets government funds, 30 battery-electric trucks would follow later in 2022, with 70 fuel-cell trucks due to start in 2023.

Meanwhile, Nikola is making some progress on starting to build up infrastructure. In April, Nikola announced plans to create a hydrogen pipeline network in Germany with its partners CNH Industrial (CNHI) and OGE.

Also last month, it announced a deal with TravelCenters of America (TA) to install hydrogen refueling stations for heavy-duty trucks at two sites in California. These sites may begin operation as early as the first quarter of 2023.

Hydrogen fuel cells are gaining popularity as renewable energy investment has been on the rise globally following the enactment of the Paris Climate Agreement. Even Saudi Aramco, the world’s largest energy company, sees a huge potential for hydrogen fuel.

Follow Gillian Rich on Twitter for investing news and more.

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