Nikola Stock Surges After Strong Q2 Earnings Report – What You Need to Know
Fuel-cell electric vehicle (FCEV) manufacturer Nikola (NASDAQ: NKLA) experienced a significant increase in its shares following the release of better-than-expected results for its second-quarter earnings. The company is also making progress in its efforts to revive its battery EV business after a recall last year. Despite these positive developments, NKLA stock is still facing challenges in rebuilding its credibility.
In the second quarter, Nikola reported a loss per share of $2.67, surpassing the anticipated loss of $2.76. The company also exceeded revenue expectations, reporting sales of $31.32 million compared to the consensus estimate of $24.70 million. These results show a marked improvement from the previous year when Nikola posted a loss of $6 per share and $15.36 million in revenue.
Despite the positive financial performance, NKLA stock has struggled, with shares declining by 66% since the beginning of the year and losing over 85% of their value in the past 52 weeks.
Key Highlights from Nikola Stock Earnings
Nikola delivered 72 commercial FCEVs to its dealer network in Q2, exceeding its guidance range. The company has also manufactured 147 wholesaled vehicles in the first three quarters of serial production, making it the only OEM with commercially available Class 8 FCEVs in North America.
Nikola is making progress in returning BEVs to its dealer network and end fleet users after a recall of 209 commercial battery electric vehicles last year due to battery fires. The company aims to complete the recall program by the end of 2024, with customers expressing satisfaction with the returned vehicles and over-the-air updates.
Analysts Remain Bullish on NKLA Stock
Despite the stock’s decline and financial risks, Wall Street analysts maintain a bullish outlook on NKLA stock. The consensus rating is a moderate buy, with an average price target of $22.80, implying a potential upside of over 168%.
In conclusion, while Nikola has shown positive financial results and progress in its business operations, the stock continues to face challenges in the market. Investors should carefully consider the risks and potential rewards before making any investment decisions in NKLA stock.