Electric Vehicle start-up Nikola reported a narrower-than-expected loss for the second quarter but lowered its delivery and revenue expectations for the year due to supply-chain issues.Nikola did compare with what Wall Street expected based on average estimates compiled by Refinitiv. The Adjusted results were a loss of 20 cents per share, but the analysts reported 29 cents a share.
Mark Russell, CEO, said that the investors during the earnings call that the company’s expected production during the second half of the year will be limited due to supply disruptions, including an ongoing shortage of semiconductor chips.
Electric Vehicle Start-up Nikola cut its revenue forecast for the year to $0 to $7.5 million, down from $15 million to $30 million. It also lowered vehicle delivery expectations to 25 to 50 units, down from 50 to 100. The shares of the company dropped down by about 6.5% during early trading Tuesday to $10.45 a share. The stock is down by about 27% this year.The loss comes five days after a federal grand jury charged Nikola founder Trevor Milton with three counts of criminal fraud for lying about nearly all aspects of the business to bolster stock sales of the Electric Vehicle start-up.
The company attempted to separate itself from Milton and the charges that Trevor Milton resigned from Nikola on September 20, 2020 and has not been involved in the company’s operations or communications since that time. The company said it remained committed to previously announced milestones and timelines and delivering Nikola Tre battery-electric trucks later this year from the company’s manufacturing facilities.