Editor’s note: An earlier version of this story incorrectly mentioned that Nikola focuses exclusively on electric vehicles in the eighth paragraph. The company produces both battery electric vehicles and trucks powered by hydrogen fuel cells.
Electric truck manufacturer Nikola Corp NKLA delivered 40 hydrogen fuel cell electric trucks in the first quarter, leading its shares to rise more than 6% on Thursday. Given the low stock price, even small increases translate into large percentage gains. But notably, Nikola’s stock is up 14.46% year to date, unlike most pure electric vehicle makers, whose shares are down.
It’s not an easy climb: However, Nikola’s path was not easy. The company’s stock value fell from more than $2 to less than $1 in 2023 due to several setbacks, including multiple fires with its battery-electric trucks, a subsequent recall and executive reshuffles.
Nikola began supplying battery electric trucks before hydrogen fuel cell trucks. However, the company recalled these vehicles in August following several fires.
Sales of new BEV trucks are currently suspended as Nikola focuses on returning recalled vehicles to customers.
Management mix-ups: The company has also seen leadership changes, with Steve Girsky replacing Michael Lohscheller as CEO in August and Anastasija Pasterick resigning from the position of CFO after a few months. Last month, ex General Motors executive Thomas Okray was appointed new CFO.
For all of last year, Nikola produced a total of 38 trucks, fewer than the 258 it produced in 2022. It reported total revenue of $35.8 million and a gross loss of $214.1 million, higher than the loss of $86 million recorded in 2022.
However, the stock has been on an upward trend since early 2024, likely due to sales of its hydrogen trucks and the expected return of its retired BEVs. In February, Girsky said deliveries of stationary BEV trucks would restart at the end of the third quarter or early in the fourth quarter of 2024. All recalled vehicles are expected to return to customers by the end of the second quarter or beginning of the third trimester.
Traditional automakers and electric vehicle startups
Unlike established car companies like General Motors AND Ford that produce both electric and gas-powered vehicles, Nikola joins US companies such as Tesla Inc TSLA, Rivian Automotive Inc. RIVNAND Lucid Group Inc. LCID in the production of battery electric vehicles (BEVs) (apart from trucks powered by hydrogen fuel cells).
Shares of Tesla have fallen 31.1% since the beginning of the year, while Rivian and Lucid have fallen 52% and 36.1%, respectively, reflecting concerns about a potential slowdown in demand for electric vehicles.
Tesla posted an 8.5% year-over-year decline in first-quarter sales, delivering 386,810 vehicles. While Rivian managed to increase first quarter deliveries year over year, the company’s full-year production target remains around 57,000 units, similar to 2023. Both Rivian and Lucid continue to struggle to ramp up production profitably and are losing money on every vehicle delivered.
In contrast, the stock prices of General Motors and Ford increased by 21.2% and 8.6%, respectively.
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To know more: Electric vehicle charging will soon be a ‘necessity’ over ‘services’ to keep employees in workplaces, says senior Tesla exec