Nikola Corp (NKLA) has witnessed a substantial decrease in its shares after the company revealed a leadership transition, with CEO Michael Lohscheller departing from his position immediately.
Lohscheller, who joined Nikola as president in February 2022 and took over as CEO in August of the same year, has decided to step down due to a family health matter, and will be returning to Europe. However, he will continue to serve as an adviser to Nikola until the end of September to ensure a smooth transition.
In the wake of Lohscheller’s departure, the board has named Steve Girsky, who has been the chair since September 2020, as the new CEO. Girsky expressed enthusiasm for the role, stating his unwavering support for Nikola’s mission and his eagerness to build upon the work done by Michael and the team.
This change marks Nikola’s fourth CEO in just a few years, raising questions about stability and leadership within the company.
See also: Nikola Secures Shareholder Support for Proposal to Increase Share Issuance
Adding to the challenges, Nikola recently reported its second-quarter earnings, revealing concerning trends. The company saw growing net losses and a decline in production, with only 33 trucks built in Q2 compared to 50 during the same period last year. Shipments to dealers also decreased from 48 to 45 trucks in the second quarter. Despite this, Nikola recorded its best retail quarter, delivering 66 Tre BEV electric trucks.
On a positive note, Nikola began serial production of its hydrogen fuel cell truck on July 31. The company claims that 18 customers have already ordered more than 200 units, indicating interest in their alternative fuel technology.
Nikola also reported the completion of phase 2 assembly expansion, with the new mixed-model line installed. This brings the facility’s current capacity to 2,400 trucks per year, operating on three shifts.
See also: The Nikola Hydrogen Fuel Cell Electric Truck with 500-Mile Range Enters Official Production
Despite the challenges in deliveries, Nikola managed to generate $15.4 million in revenue during the quarter, though it was down nearly 14% from the previous year. Gross margins also experienced a slight decrease from 161% to 180% in Q2.
Overall, the company posted a net loss of $217.8 million in Q2, compared to $173 million in the same period last year. Nikola ended the quarter with $226 million in cash, relatively unchanged from the previous year.
Looking ahead, Nikola anticipates delivering 300 to 400 trucks this year, aiming for targeted revenue between $100,000 and $130,000. The company has a forecast of 60 to 90 truck deliveries in Q3.
As Nikola navigates through this transition of leadership and addresses its production and financial challenges, all eyes will be on the new CEO, Steve Girsky, to steer the company towards a more stable and successful future.
