Nikola Corporation (NASDAQ: NKLA) stock soared as the EV truck maker made significant advancements in hydrogen fuel cell electric truck production and hydrogen infrastructure development in the fourth quarter.
Nikola (NKLA) produced 42 hydrogen fuel cell electric trucks in the fourth quarter, with customers purchasing 35 of them. The company earmarked the remaining units for comprehensive testing and demonstrations.
Nikola’s HYLA Hydrogen Infrastructure division has reached a significant milestone by inaugurating its first modular fueling station in Ontario, Southern California. The company has also secured substantial off-take agreements to meet its ambitious 2024 truck production targets.
On the financial front, Nikola has fortified its liquidity position, doubling its unrestricted cash reserves to $464.7 million and reducing its cash burn rate by around 35%.
Nikola has also set ambitious targets for 2024, aiming to deliver between 300 to 350 hydrogen fuel cell electric trucks alongside a minimum of 100 battery-electric trucks.
Nikola reported a net truck revenue of $30.1 million and a gross loss of $214.1 million in 2023, mainly due to a battery electric truck recall. The company forecasts total truck revenue to range between $150 million and $170 million for 2024.
The company reported a narrowed net loss of $153.6 million in the fourth quarter, down from $222.1 million the previous year. This positive trend results from a 27% reduction in total operating expenses. Nikola forecasts operating expenses from $280 million to $300 million for 2024, coupled with Capital Expenditure (CapEx) between $60 million and $70 million.
Nikola (NASDAQ: NKLA) Stock Reaction
NKLA stock jumped 8.91% to close at $0.76 on Friday. The traders had exchanged hands with 133,869,668 (133.86 million) shares compared to the average daily trading volume of 103.12 million.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
