Shares of Nikola Corp., the pre-production truckmaker whose founder was indicted in federal court docket final week with deceptive buyers, fell after the corporate lowered its preliminary automobile supply projections and warned of nagging provide chain points.

CEO Mark Russell instructed analysts on a convention name Tuesday the startup is dealing with “quite a few” delays buying elements and CFO Kim Brady mentioned Nikola would ship as few as half as many automobiles as beforehand forecast.

Nikola’s shares fell 7 p.c to $10.40 in noon buying and selling. It had fallen about 27 p.c this yr as of Monday’s shut.

Traders centered extra on the big-rig startup’s replace about its path to full manufacturing than on its second-quarter lack of $143 million, in contrast with a lack of $116 million throughout the identical quarter final yr. Brady mentioned the Phoenix-based firm would ship simply 25 to 50 automobiles this yr, down from a earlier estimate of fifty to 100 automobiles.

Nikola, which has but to promote a automobile, mentioned it’s making progress on different milestones similar to ramping up its construct and testing of prototypes and organising a community of gross sales and repair areas. So far it has constructed 14 pre-production prototypes of its battery-electric truck.

Founder’s authorized woes

Nikola is working to place distance between itself and any repercussions from its founder’s authorized woes. Trevor Milton, who based the corporate in 2014, was charged by federal prosecutors July 29 for making false statements to buyers. The indictment accused Milton of mendacity about Nikola’s enterprise and know-how capabilities. Whereas now not holding an energetic position on the firm, he stays the one largest shareholder and has joint investments in it with CEO Russell.

The aspiring electric-truck producer has struggled to take care of buyers’ confidence and scaled-back its once-grandiose ambitions since Milton resigned in September, simply three months after it went public by merging with a blank-check firm.

Within the final quarter, the corporate accomplished the preliminary part of building on its plant in Coolidge, Ariz. It has additionally began constructing 5 prototype fuel-cell powered huge rigs on the facility whereas it concurrently begins the following part of building.

Nikola’s market capitalization has plummeted from a peak of virtually $29 billion in June 2020 to lower than $4.5 billion as of Monday. That displays considerations about ongoing federal investigations, the collapse of a take care of Basic Motors to construct a pickup, and the cancellation of a contract to supply electrical rubbish vans to Republic Companies Inc.

In latest months, the corporate has refocused on just a few key targets. It plans to launch its first hydrogen-powered gasoline cell truck in 2023. Nikola additionally expects to begin serial manufacturing of battery-electric vans this yr in Ulm, Germany, in a three way partnership with CNH Industrial NV’s Iveco unit and kick off deliveries within the fourth quarter.

The corporate is at present constructing two trial manufacturing variations of the BEV semi on the meeting line in Ulm and one other two in Coolidge.