Nikola Corporation: Weak 2024 Outlook With More Dilution Likely Ahead – Sell

Summary:

  • Ailing zero-emission transportation start-up Nikola Corporation reported another set of disappointing quarterly results.
  • Painfully weak FCEV truck gross margins resulted in average cash losses of more than $450,000 for each truck sold during the quarter.
  • Adding insult to injury, forward guidance was also well below consensus expectations.
  • Based on the company’s projections, 2024 cash usage would be above $400 million thus consuming most of Nikola’s reported liquidity at year-end.
  • Given the disappointing trajectory of the business and very high likelihood of further, material dilution, investors should consider selling existing positions and moving on.
Electric truck Nikola on a street

Tramino

Note:

I have covered Nikola Corporation (NASDAQ:NKLA) previously, so investors should view this as an update to my earlier articles on the company.

Last week, ailing zero-emission transportation start-up Nikola Corporation (“Nikola”) reported another set of disappointing quarterly results:


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.


Massively Outperform in Any Market

Value Investor’s Edge provides the world’s best energy, shipping, and offshore market research. Even during turbulent market conditions, our long-only models have outperformed the S&P 500 by more than 30% YTD.

We also offer income-focused coverage geared towards investors who prefer lower-risk firms with steady dividend payouts. Our 8-year track record proves the ability of our analyst team to outperform across all market conditions. Join VIE now to access our latest top picks and model portfolios.

Leave a Reply

Your email address will not be published. Required fields are marked *