Nikola Corp. reported a significant quarterly loss and halted production at its Arizona factory, leading to a 12.8% drop in its Nasdaq shares to $0.86.
The company intends to streamline its production process and concentrate on cost-cutting initiatives, such as producing battery electric trucks only when customers order them.
- Nikola reported a net loss of $169.09M for Q1 2023, up from $152.94M in the same period the previous year. Cash burn was $240M, up from $200M YoY.
- According to Nikola's finance director, the current cash burn rate is unsustainable, and the business is looking into ways to cut costs and raise more money.
- Beginning in July, the Coolidge production line will again be used to construct battery-electric and hydrogen fuel cell trucks, emphasizing the former.
- In addition to considering possibly restructuring its battery-making division, Romeo Power, the business intends to sell its 50% investment in a joint venture with Italian truck manufacturer Iveco Group.
- In August 2022, Nikola acquired Romeo, its battery supplier, for $144M to strengthen its supply chain.