NKLA - Nikola Plans to Shift Focus to North America: What It Means for Investors
2023-05-09 11:14:36 ET
Electric heavy truck maker Nikola (NASDAQ: NKLA) made some big announcements with its first-quarter earnings report released today. The company has been struggling financially as it works to ramp up sales of its battery electric semitrucks.
Nikola most recently raised about $100 million in new capital by selling its stock at $1.12 per share. That's after shares had dropped about 85% over the past year. Now it says it is shifting its focus and reprioritizing the business. Investors likely want to know if that all means now is a good time to bet on Nikola.
Nikola's only source of meaningful revenue has been its Tre battery electric truck. The company delivered 31 in the first quarter, generating revenue of over $11 million. It produced 63 trucks in the quarterly period, though, and now says it will take advantage of the excess inventory to pause production and upgrade its assembly line at its Arizona plant.
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Nikola Plans to Shift Focus to North America: What It Means for Investors