Market introduction of electric cars

Nikola Korp.

NKLA -4.85

reported higher losses in the third quarter, a period of turbulence in which CEOs were under pressure to answer questions about the legitimacy of their companies.

Start-up Phoenix was in the spotlight after an IPO in June and the sudden departure of the company’s founder, Trevor Milton, in September, amid disputes over a critical vendor report. Nicola described the allegations in the report as false and misleading.

The company’s net loss for the third quarter was $117.5 million, compared to a loss of $15.5 million for the same period last year. The company continues to invest significant resources in the development of its first trailer model, an all-electric Nikola Tre, and in the expansion of its workforce.

The net loss per share outside GAAP was 16 cents, which exceeded analysts’ expectations of 19 cents per share.

Nicola reported that it had $908 million in cash on hand at the end of the reporting period, of which approximately $263 million was earned on purchase orders during the quarter.

Nicola was buzzing around Wall Street trying to cut off the road for electric freight. The Office of the Attorney General of Switzerland is currently investigating allegations that this has misled investors. WSJ explains the American summer to Nicola and what will happen for the company afterwards. Photo: WSJ

In June, the company raised about $617 million through a reverse merger with VectoIQ Purchase Corp, a specialty acquisition company led by automotive industry veteran Steve Girski. In September, Mr Girski returned to the position of Managing Director of Nikola after the retirement of Mr Milton.

This quarter Nikola saw significant progress against previously announced milestones, said Mark Russell, Nikola’s CEO, commenting on the company’s revenues. He talked about the progress of the first prototypes of Nicola Tre, a model he made in Germany, and the start of the construction of the factory in Arizona.

Nikola’s shares rose by almost 2% in the aftermarket.

Wall Street follows Nicholas’ speech closely after Hindenburg Research published a report in New York in September describing the company as a sophisticated fraud and plunging its actions into the crater.

The report accuses Nikola of misleading investors with exaggerated statements about the willingness of his technology and the extent to which the company is developing in-house. As a seller with a short selling period, Hindenburg makes a profit when the shares fall.

Investors and major car manufacturers are putting money into starting electric cars looking for the next Tesla, hoping to take advantage of it. One company attracts more attention than most others. WSJ explains. It’s an illustration: Jacob Reynolds/WSJ

Nikola defended herself against the report and in recent weeks CEOs have been trying to detail their business plans to investors and analysts to refute the accusations.

Nicola’s chief financial officer, Kim Brady, said Monday that the company had spent $5.2 million on legal fees related to the seller’s summary report.

In its quarterly reports, the Company acknowledged that Mr. Milton and other executives had received subpoenas from the Securities and Exchange Commission and the Department of Justice within days of the report.

The launch has already attracted investments from industrial heavyweights such as the automotive supplier Robert Bosch GmbH and manufacturers of heavy machinery.

CNH industry

NV. In September,

General Motors Co.

said he would join Nicola to help it design and produce hydrogen-powered trucks – an agreement that would allow GM to get part of the start-up.

Nikola’s shares increased by 41% in the wake of the news of the partnership with General Motors.

However, the agreement has not yet been concluded, as both GM and Nicola say they are still negotiating the terms. Mr Russell has stated that he will propose updates on Monday when they are ready and if necessary. Each party may withdraw from the contract if the contract is in accordance with the documents of the company by 3. The parties may terminate the agreement. No agreement will be reached before 31 December.

As reported in Nikolai on Monday, the company hopes to strengthen partnership relations by the end of the year, including by building a network of hydrogen refuelling stations. However, the pandemic in Covida 19 led to travel and logistical problems which slowed down discussions.

Directors also informed analysts that Nikola plans to launch limited production at its Arizona plant by the end of next year.

Nicola is one of a dozen young transport companies focusing on clean energy and looking for public markets to attract capital. Wall Street’s enthusiasm for this type of business has grown tremendously this summer as investors seek to take advantage of shareholder progress.

Tesla Inc..,

a once renowned manufacturer of electric cars, whose estimates have exploded in recent months.

Nikola focuses on the commercial marine market for the sale and rental of large electric drilling platforms and hydrogen fuel cells. In addition to the production of trucks, the company also wants to make filling stations available to fleet managers.

However, as with many other start-ups, there is at least one year to go until the first sale. The production of Nikola Tre, the company’s first battery-powered model, is scheduled to start in Germany at the end of next year.

In a telephone conversation with the Company in the second quarter of August, Mr. Brady indicated that Nicola was making progress towards its year-end targets, especially with regard to new partnerships and bookings. This month the company announced that it has an order for 2,500 garbage trucks.

Republic of Services Inc.

However, the company spent most of September overcoming the unrest caused by the Hindenburg report. Mr Milton, who founded Nicola in 2015 after a number of other companies, resigned just over a week after the report was published in order to focus better on the company.

The U.S. Department of Justice and the U.S. Securities and Exchange Commission have launched an investigation to determine whether Nicola has misled investors, the Wall Street Journal and others.

Mr Russell said Monday that the company is in contact with the SEC regarding the seller’s summary report and is cooperating with both investigations.

Nikola’s talks with several potential partners, including BP PLC, on the construction of hydrogen filling stations also came to a halt following the publication of a report on the Hindenburg, reported on by the Wall Street Journal in September. Mr Nikolayevich said that negotiations were continuing with potential partners.

The shares fell to a closing price of $20.48 per share after the close of the report at the end of September, a drop of approximately 70% from the beginning of the third quarter.

Management said it was trying to draw attention to Nikola’s plans for commercial freight transport using hydrogen as fuel, and that it wanted to abandon some of the projects initiated by Mr Milton, such as zero-emission jet skis. The company has also cancelled the Nikola World event, which is scheduled for December.

The company needs to restore confidence, but with no profit in the near future, the stock will act primarily on sentiment, according to Wall Street analysts.

This is likely to take time and leave the action in the penalty box for some time, wrote RBC Capital Markets analyst Joseph Spuck last month.

Write to Ben Foldy at [email protected].

Copyright ©2020 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8

Related Tags:

You May Also Like

Grant Morrison Reveals They’re Non-Binary

The author and maker of television comics, Grant Morrison, who has an…

Sources — Arizona Wildcats men’s basketball team hit with nine alleged NCAA rules violations

The University of Arizona has received nine misconduct charges, including five first-level,…

Trump’s Defense Bill Kamikaze Run

At the address Editorial Board Shut up. Drafting Committee 8. December 2020…

Why is Hollywood interested in football agencies?

Julia Roberts is represented by the same agency as James Maddison of…