Electric-vehicle manufacturer Nikola Corporation (NASDAQ: NKLA) announced late last week that it had secured sufficient supplies of needed components to make good on its target to deliver 300–500 Tre battery fully electric trucks in 2024. This news caused the company’s shares to surge by at least 7%.
The company, which started production of its EVs toward the end of March, revealed that it had shipped 11 trucks last month, notching its first shipments to clients. The truck manufacturer says its suppliers had made commitments to deliver all the components it needs during the manufacturing process this year despite the geopolitical unrest putting supply chains at risk.
Michael Shlisky, an analyst at D.A. Davidson, commented that Nikola had released a series of welcome pieces of news and its confirmation that component supplies were assured to deliver on its targets for the year augured well for the truck maker.
Nikola estimates that its revenue will be in the range of $15 million to $18 million in Q2 2024. In the same quarter, the manufacturer plans to deliver 30–50 fully electric trucks to clients. Most analysts expect the company to rake in about $11.5 million in revenue this quarter, which is considerably lower than the company forecasts.
There is growing interest in the electric trucks made by Nikola. Over the past few months, the company has received many letters of intent from potential clients who would like to buy its trucks. Such interest suggests that the company has a high chance of making good on its delivery targets, given that suppliers have assured it of availing the needed components.
The company is also making a semitruck that will run on hydrogen fuel cells. This truck will be able to run for at least 500 miles before a recharge is needed, and it is estimated that recharging the fuel cell will take 20 minutes or less. These trucks will, therefore, be able to carry cargo over much longer distances than is currently possible with other electric semitrucks.
The recharge time of less than 20 minutes also makes the Nikola semitruck attractive because drivers can regard that recharge time as a normal stop that they would make for refreshments or for a quick rest during a typical trip.
The first-quarter losses of the company totaled 37 cents for each share (or $152.9 million), which is higher than the 31 cents for each share ($120.2 million) in Q1 2023. As truck deliveries increase, these quarterly losses are expected to gradually reduce until the company starts turning a profit.
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