Is It Too Late to Buy Nikola Corporation Stock?
Nikola's (NASDAQ: NKLA) stock plunged 26% on Aug. 4 after the electric and hydrogen semi truck maker posted its second-quarter earnings report. It generated $15.4 million in revenue, which marked a 15% drop from a year earlier but still exceeded analysts' expectations by $0.5 million. Its net loss widened from $173 million to nearly $218 million, or $0.20 per share, which also cleared the consensus forecast by two cents.
During the quarter, Nikola produced 33 battery-powered electric trucks (BEVs) and shipped 45 BEVs, bringing its year-to-date total to 96 BEVs produced and 76 BEVs shipped. But at the end of 2022, Nikola claimed it could deliver 250-300 BEVs in 2023 -- so it needs to significantly ramp up its production in the second half to reach that goal. The company also plans to start delivering its first hydrogen-powered fuel cell electric vehicles (FCEVs) in September.
That progress is encouraging, but a few red flags also emerged. Do those flaws indicate it's too late to bet on Nikola's long-term recovery?
Source Fool.com
