NKLA - Forget Nikola Buy This Magnificent EV Stock Instead
2024-06-16 05:40:00 ET
Nikola (NASDAQ: NKLA) disappointed a lot of investors after it went public by merging with a special purpose acquisition company (SPAC) four years ago. The maker of electric semi trucks repeatedly missed its own delivery estimates, its founder and former CEO Trevor Milton was convicted of securities and wire fraud, and it recalled nearly all of its vehicles after a series of battery fires. It has also nearly tripled its share count over the past four years to raise more cash.
In 2023, Nikola only delivered 79 battery-powered electric semi trucks (BEVs) and 35 hydrogen-powered fuel cell trucks (FCEVs). That was well below the 3,500 BEVs and 2,000 FCEVs it originally claimed it could deliver in 2023 in its pre-merger presentation. It only generated $36 million in revenue during the year, but it racked up a net loss of $966 million. That equals an average net loss of $8.5 million per vehicle delivered.
Image source: Li Auto.
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Forget Nikola, Buy This Magnificent EV Stock Instead