Nikola is an electric truck start-up with virtually no income and a very questionable former founder, and one who seems to crumble in slow motion. Nevertheless, he is still there and announced his first quarter results on Friday. Analysts were impressed that this was nothing shocking.
Nikola is also currently under investigation by the Securities and Exchange Commission and the Department of Justice, the former of which has issued subpoenas after Hindenburg Research. published a damaging article about Nikola in September.
But that’s just old bad news. The good news today is that Nikola lost just 14 cents a share in the first quarter of this year, half of what analysts expected. according to Bloomberg. It counts as praise that today’s release was somewhat boring.
The stock rose 12% to $ 11.37 at 11:06 a.m. in New York. It had fallen about 33% this year at the close on Thursday.
“It’s a rescue rally after no major negative news, although the chip shortage remains a headwind for Nikola and others,” Wedbush analyst Daniel Ives said in an email. It has a neutral rating on the title. “The street feared that an elephant would be in the room to answer the call.”
And maybe about a company like Nikola, the following two paragraphs could appear one after the other:
The company also revealed that it paid $ 3 million in legal fees in the first quarter for Trevor Milton, its founder and former executive chairman, who resigned in September. The payments were made under an indemnity agreement.
“We believe the details given were relatively positive,” said Chris McNally, analyst at Evercore ISI, which has an equivalent holding rating on the stock, in a note to clients. “The SEC and DOJ investigations also remain with uncertain temporal resolution.”
Nikola no longer be a badger, now that its partnership with GM has also been restored. Now it looks like that’s almost all about the Tre, a hydrogen fuel cell electric semi-trailer that the company said on Friday it was close to building a second batch of nine betas. The company also said it was making progress with its manufacturing facilities in Germany and Arizona.
The company also hopes to begin deliveries of battery electric trucks next year and hydrogen fuel cell electric trucks in 2023. You know, we’ll see.