Nikola Open To 'Flexible' Pricing For Large Fleet Deals As EV Truck Maker Fishes For Bigger Customers Outside California
Portfolio Pulse from Anan Ashraf
Nikola Corp (NASDAQ:NKLA) reported a rise in the average sales price of its fuel cell electric vehicle (FCEV) trucks by $30,000 in Q1 compared to the previous quarter, reaching $381,000. Unlike other EV makers facing price drops amid a price war, Nikola plans to maintain flexibility in pricing for large fleet deals to expand its customer base beyond California and Canada. The company aims to target fleets with over 1000 trucks and is open to adjusting prices for significant deals. Nikola wholesaled 40 trucks, produced 43, and reported a Q1 revenue of $7.5 million with a net loss of $147.7 million. Nikola's stock fell 5.4% to $0.6 on Tuesday, marking a nearly 27% decline year-to-date.
May 08, 2024 | 12:12 pm
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Nikola Corp reported a significant rise in the average sales price of its FCEV trucks and a strategic shift towards flexible pricing for large fleet deals. The company aims to expand its market beyond California and Canada, targeting fleets with over 1000 trucks. Despite a revenue of $7.5 million, Nikola faced a net loss of $147.7 million in Q1. The stock experienced a 5.4% decline to $0.6 on Tuesday, with a nearly 27% decrease year-to-date.
The reported increase in the average sales price of Nikola's FCEV trucks and the strategic pricing flexibility indicate a strong product offering and a potential for increased sales volume. However, the significant net loss and the stock's negative performance year-to-date suggest that investors may have concerns about the company's profitability and growth prospects in the short term. The focus on expanding the customer base outside of incentive-rich areas like California and Canada could be a positive move, but the immediate financial impact appears to be negative, as reflected in the stock's recent decline.
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