Nikola Sells More T-Shirts than Trucks
Nikola is no longer a pre-revenue company after making $36,000 on t-shirts and hats. $30,000 in cost of goods sold leaves $6,000 in gross profit, that translating to an $87 million net loss after operating costs. It’s hard to write a review of Nikola’s earnings when there are none, and the company is valued at 13-billion-dollars!
The market sees Nikola cornering the market for electric trucks. It’s a good hedge for Tesla investors who are curious about hydrogen-electric power generation, something that Nikola founder Trevor Milton pioneers. It’s only done artist renderings of trucks so far, but it’s good at them, and all new companies start somewhere ($13 billion market cap might be a stretch!).
The Nikola Badger is the star pickup in planning, with almost a thousand horse power and a thousand pounds of torque, but it doesn’t exist.
Nikola’s stock price is down 7% as investors stress about the reservations for the truck, chosen manufacturers, a target market etc., and forward guidance in these areas was weak on the earnings call. The focus was on where the stock price stood, and interestingly, investors didn’t like that.
Trevor Milton cheerleads from the front to keep traders onside, as actual production won’t come cheap and the stock market represents an essential source of financing, but stocks can’t be advertised and sold the same way as luxury goods in the long-term. Nikola has to throw us a bone!
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
