Nikola Shares Higher Despite Weaker-Than-Expected Q3 Earnings: What's Going On?
Portfolio Pulse from Lekha Gupta
Nikola Corp reported weaker-than-expected Q3 FY23 sales of $(1.73) million, significantly missing the consensus of $13.3 million. The company didn't produce any trucks in Q3, shipped only 3 trucks, and reported a gross loss of $(125.5) million. Despite these results, Nikola's shares are trading higher by 8.56%. The company expects higher costs related to truck recall that will increase required capital to achieve profitability in 2025. Nikola recently won an arbitration proceeding with its founder and former executive chairman Trevor Milton, being awarded approximately $165 million plus interest.
November 02, 2023 | 5:28 pm
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Nikola Corp reported weaker-than-expected Q3 FY23 results, with no trucks produced and a significant gross loss. Despite this, the company's shares are trading higher. Nikola expects higher costs due to truck recall, which will impact its path to profitability in 2025.
Despite the weaker-than-expected Q3 FY23 results, Nikola Corp's shares are trading higher, which could be due to the recent arbitration win against its founder. However, the company expects higher costs due to truck recall, which will impact its path to profitability in 2025. This could potentially affect the company's stock price in the short term.
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