Electric truck maker Nikola reported stronger-than-expected second-quarter revenue on Friday, along with a smaller-than-anticipated adjusted loss, driven by increased deliveries of its hydrogen-powered big rigs. The company’s shares surged 17% in early trading following the announcement.
Nikola’s revenue for the quarter reached $31.3 million, surpassing Wall Street estimates of $27.1 million, according to LSEG data. This growth is attributed to an 80% increase in deliveries, with the company delivering 72 hydrogen trucks during the quarter. This uptick in demand comes despite a broader slowdown in the electric vehicle (EV) industry, as customers increasingly opt for Nikola’s hydrogen fuel cell vehicles over traditional battery-powered trucks.
The company has been shifting its focus away from battery-electric trucks, a strategy that appears to be yielding positive results as it secures new customers and sees an increase in orders for its hydrogen vehicles. In June, Nikola signed Walmart Canada as a major client, delivering a hydrogen semi-truck to the retailer.
Despite the positive quarterly results, Nikola’s shares have faced significant pressure this year, declining over 70% amid a challenging environment for the EV sector. Factors such as range anxiety, higher prices, and economic uncertainty have dampened consumer interest in EVs, affecting overall industry growth.
Nikola reported an adjusted loss per share of $2.67 for the quarter, which was better than the average analyst estimate of a $2.85 loss. However, the company’s cash and cash equivalents declined to $256.3 million, down from $345.6 million in the previous quarter.
Nikola also remains on track to complete the rollout of its revamped battery-electric trucks by the end of the year, despite the shift in focus towards hydrogen-powered vehicles. The company’s efforts to diversify its product offerings and meet evolving customer demands are seen as crucial in navigating the current market challenges.
