Nikola’s stock drops 9% after supply chain disruptions linked to pandemic

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The shares of Nikola Corp. fell more than 9% after hours Tuesday after the electric vehicle maker reported a larger-than-expected second-quarter loss on Wall Street and said the COVID-19 pandemic disrupted its supply chain.
Nikola NKLA,
+ 6,44%
said it lost $ 86.6 million, or 33 cents per share, in the quarter, compared to a loss of $ 16.8 million, or 6 cents per share, the year before. Adjusted for one-time items, Nikola lost 16 cents per share in the quarter.

Analysts polled by FactSet had expected Nikola to post a GAAP loss of 13 cents per share with no income.
Related:Chinese electric car maker Li Auto soars 50% after IPO

“The global pandemic has disrupted Nikola’s supply chain, but mitigation efforts are underway to reduce the resulting risk to production times,” the company said in a statement. “At this time, we believe that Nikola’s long-term goals will not be materially affected by COVID-19.”
Nikola has said his Nikola Tre, a hydrogen-powered long-haul truck, is set to start production in the fourth quarter of 2021. The first units will be produced at the German Nikola plant, which is currently undergoing severe damage. modifications. When completed, this facility will be capable of producing up to 10,000 units per year, Nikola said.
In addition to construction in Germany, Nikola said it started July 23 at a manufacturing facility in Coolidge, Ariz.
“When completed, the Coolidge manufacturing plant will be capable of producing up to 35,000 trucks per year at full capacity in two shifts. The first phase of this construction is expected to be completed by the fourth quarter of 2021, ”the company said.
Nikola went public in June, and shares doubled soon after.
Within days, Tesla Inc. TSLA,
+ 0,13%
Chief executive Elon Musk urged his company to “do it all” with the Tesla Semi, the Silicon Valley automaker’s long-haul electric truck, which is expected to be available in 2021.
See also:Nikola on his way to ‘disrupt transport’, says JP Morgan
Nikola’s popularity is also part of a wave of IPOs through a Special Purpose Acquisition Company, or SPAC, also known as blank check companies. Electric car maker Fisker Inc. has also chosen to go public through a SPAC.
Nikola shares have gained 273% this year, compared to gains of around 2% for the S&P 500 SPX,
+ 0,36%
and contrasting with a loss of around 6% for the Dow Jones Industrial Average. DJIA,
+ 0,61%
.

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