EV Truck Maker Nikola's Topline Plunges 30% in Q1 On Weak Demand, Stock Tanks
Portfolio Pulse from Anusuya Lahiri
Nikola Corp reported a 30% decline in Q1 sales year-over-year, missing analyst estimates with $7.5 million versus the expected $15.8 million. The adjusted EPS loss improved to $(0.09) from $(0.22) Y/Y, beating the consensus loss estimate of $(0.10). Production and shipment of trucks decreased and increased, respectively, compared to last year. Despite maintaining a dominant market share in HVIP vouchers for Class 8 FCEVs, the company faced a gross loss increase and postponed the delivery timeline for its battery trucks to the end of 2024. Nikola's stock price fell by 9.93% following these announcements and ongoing challenges, including potential fraudulent conduct allegations and medium-term hurdles like inadequate charging infrastructure.
May 07, 2024 | 2:33 pm
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NEGATIVE IMPACT
Nikola's Q1 performance and stock decline may affect the SPDR S&P Kensho Smart Mobility ETF, which includes NKLA.
HAIL ETF, holding Nikola stock, could see a negative impact from Nikola's disappointing Q1 results and stock performance, though the diversified nature of the ETF may mitigate the overall effect.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Investors can gain exposure to Nikola through the Direxion Moonshot Innovators ETF, which may be impacted by Nikola's performance.
Given that MOON ETF includes Nikola within its portfolio, Nikola's poor performance and stock price decline could negatively impact MOON's performance, albeit to a lesser extent due to portfolio diversification.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Nikola Corp's Q1 report shows a significant sales decline and missed estimates, with a notable stock price drop of 9.93%.
The significant miss in sales expectations and the subsequent stock price drop reflect negatively on investor confidence and market perception of Nikola's financial health and operational challenges.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100