Following Milton’s indictment, Nikola reports his profits are battered with production updates – .

Following Milton’s indictment, Nikola reports his profits are battered with production updates – .

Following the indictment of former CEO and company founder Trevor Milton, Nikola Motor Corp. (NASDAQ: NKLA) reported lower earnings in its second quarter earnings call this morning. The company also gave several updates regarding the production of its Nikola Tre EV and Hydrogen Fuel Cell vehicles.

Last week, the company’s former CEO Trevor Milton was charged with three counts of fraud allegedly committed during his stint as Nikola’s leader. While Milton is currently on bail and will await trial in Manhattan, New York, Nikola continues without its founder, with the goal of bringing production-ready vehicles to market after several years of loopholes and failed updates. so honest.

Trevor Milton’s legal team issues statement after Nikola founder charged with fraud

Nikola reported a loss of -20 cents per share. Wall Street estimated a loss of 30 cents per share. Additionally, the company reported an EBITDA loss of $ 73.9 million, while consensus estimates called for a projected loss of $ 116.9 million.

“We have had continued success in commissioning and validating the Nikola Tre BEVs, completed both our Ulm, Germany and phase 0.5 of our Coolidge, Arizona manufacturing facilities, has entered into a purchase agreement with Tumim Stone Capital LLC for up to $ 300 million common shares of Nikola and acquired a 20% stake in Wabash Valley Resources’ clean hydrogen project in West Terra Haute, Indiana, ”the company said.

Nikola stated that he has already completed production of nine Nikola Tre BEVs, which were part of the second batch of production units. The first batch of five Nikola Tres is in the process of being validated, according to the company. Three trucks from the second batch are put into service and are in various stages of validation. The other six are in the process of commissioning at the Coolidge, Arizona facility. On June 14, Nikola began a series of production trials of Nikola Tre constructions in Ulm, Germany.

Nikola stock was down 7.16% at the time of writing as the company’s outlook looks uncertain going forward. After Milton left last year, Nikola aims to move forward with new production goals. During the earnings call, the company said it now plans to deliver between 25 and 50 all-electric trucks by the end of 2021. That’s half of expectations previously, but the constraints of the supply chain and the ongoing validation of the Tre make timelines uncertain. .

Following an unfavorable Hindenburg Research report regarding Nikola’s vehicle production, the company admitted Milton fabricated some of the claims. Depending on how Nikola is able to navigate the twelve months, the company could turn around and become a leader in electric trucking, but it will have to go through several competitors, including the Tesla Semi, to get there.

Disclosure: Joey Klender is not a shareholder of the NKLA.
Following Milton’s indictment, Nikola reports his profits are battered with production updates


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