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Nikola soars with 318% sales growth, but reports heavy Q2 loss

Nikola Corporation’s Q2 2024 earnings report reveals a dramatic 318% increase in quarterly revenue, reaching $31.3 million, driven largely by the delivery of 72 hydrogen fuel cell electric vehicles. Despite this remarkable revenue growth, the company continues to grapple with substantial financial hurdles, including a hefty net loss and a negative gross margin.

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In Q2 2024, Nikola achieved its highest quarterly revenue to date, reaching $31.3 million, a substantial 318% increase from the first quarter of the year. This growth was primarily driven by the delivery of 72 hydrogen fuel cell electric vehicles (FCEVs), surpassing the high end of the company’s guidance and reflecting an 80% increase from Q1.

These deliveries mark a significant milestone for Nikola, which has now wholesaled 147 FCEVs in the first three-quarters of serial production.

Despite this revenue growth, Nikola continues to face significant financial headwinds. The company reported a gross loss of $54.7 million for the quarter, widening from the $27.6 million loss in the same period last year. The gross margin remained deeply negative at -175%, indicating that the cost of producing and delivering vehicles continues to exceed sales revenue by a large margin.

Nikola’s operating loss for the quarter was $131.1 million, down from $168.6 million in Q2 2023, reflecting ongoing efforts to manage expenses. However, the company’s net loss from continuing operations was $133.7 million, compared to a loss of $140.0 million in the same quarter last year. For the first half of 2024, the company’s net loss from continuing operations totalled $281.4 million.

The company’s efforts to address financial challenges include the recall of its Battery Electric Vehicles (BEV) “2.0” models, which Nikola aims to complete by the end of 2024. Despite the setbacks, Nikola remains committed to its long-term vision of decarbonizing the Class 8 trucking sector.

Nikola’s HYLA brand, which focuses on hydrogen refuelling infrastructure, is also gaining momentum. The company opened a new HYLA station in Toronto, Ontario, and expanded its refuelling capacity in Southern California. These initiatives are part of Nikola’s strategy to build a comprehensive hydrogen fueling network to support the growing fleet of FCEVs.

The second quarter also saw Nikola generate alternative revenue streams through the sale of regulatory credits, marking a new avenue for revenue growth as the company continues to scale. 

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