Nicola lowered delivery and sales forecasts for 2021 | World Weekly
Nikola Company Updates
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On Tuesday, executives said Nikola would deliver fewer trucks this year than planned, warning that supply chain shortcomings could leave some parts lacking and some parts cannot be considered sales.
Investors were hoping for better news from the beleaguered electric truck startup following last week’s fraud accusations against company founder Trevor Melton, but its shares fell nearly 7 percent in morning trading to $10.42.
“According to the date of receipt . . . semiconductor components and suffixes [vehicle] With validation and testing, the salable vehicles may not be available until 2022, said Kim Brady, chief financial officer.
Nikola plans to manufacture long-range semi-trucks powered by either batteries or hydrogen fuel cells, pooling leases for fuel cell trucks with access to a network of hydrogen fueling stations. But federal prosecutors said last week that its founder made false claims about the company’s technology to inflate its share price. Milton denies the charges.
The company, based in Phoenix, Arizona, said earlier it would deliver 50 to 100 battery-powered Nikola Tree trucks to customers in 2021. Brady cut delivery guidance for a batch of 25 to 50 vehicles.
These trucks can be driven, Mark Russell, CEO, said, but due to supply chain issues around the world, they may lack components such as sensors or touch screens. Without all of the components, ownership of the vehicle cannot be transferred, which prevents the company from withholding revenue from its sale.
“In most cases, we have the components needed to run the truck,” he said. “It won’t be completely finished in terms of every part, but there seems to be a good chance that it will be usable, just not salable.”
Nikola, which went public in June 2020, has not yet made a sale. Brady cut the company’s 2021 revenue guidance from $30 million to $7.5 million — and possibly less than zero.
The company also addressed what Russell called “the elephant in the room” in a call Tuesday with investors, saying the Milton indictment was a “potential distraction” untouched by other company officials.
Russell said the levels of the lengthy indictment are “against Trevor personally”. “They all include statements made by Trevor personally, and nothing the company has said or provided.”
But Hindenburg Research, the short seller who published the report that sparked the federal prosecutors’ investigation, said in a tweet Tuesday that Russell, in particular, has long-standing relationships with Milton, and that he and Brady and Britton Worthen, the chief legal officer, instigated Melton’s false statements.
“Given your history here, why should investors trust anything you say?” Hindenburg asked.
Nicola declined to comment.