Nikola Corp. (NASDAQ: NKLA) has proved why it is a penny stock that trades at only $1.43. It sold a paltry 66 trucks in the last quarter. It produced only 33. This means the question of whether Nikola can survive gets raised again.
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As it announced sales, it also disclosed that the California Transportation Commission (CTC) awarded “Nikola and sponsor California Department of Transportation (Caltrans), a $41.9 million grant under the Trade Corridor Enhancement Program (TCEP) to build six heavy-duty hydrogen refueling stations across Southern Calif.” That is hardly enough money to keep Nikola in business. (These are the 13 biggest electric vehicle business failures in American history.)
Nikola will not announce earnings until August 4. However, where the stock trades is a tip-off to what investors expect. Shares are off 72% this year.
The new quarter may look like the last one. The company had $11 million in sales and a loss of $169 million. There was not a thread of evidence that there is demand for Nikola trucks, or that it can afford to build them.
24/7 Wall St.Nikola is one of a small group of tiny electric vehicle companies that has to compete with Tesla (which plans to launch a large truck) and the world’s other huge car manufacturers who want part of the EV industry. Given its new sales figures, Nikola may not last more than a year or two.
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