Shares of Nikola Corp. surged Thursday by as a lot as 14% after the embattled electrical automobile start-up reported a narrower-than-expected loss through the fourth quarter and confirmed plans for truck manufacturing and income technology in 2022.
The pre-revenue firm, which lately settled a federal probe into deceptive traders, reported an working lack of $90.4 million, or 23 cents per share. That in contrast with Wall Avenue’s expectations of a lack of 32 cents per share, in line with analysts compiled by Refinitiv.
Shares of Nikola leveled off throughout noon buying and selling to $7.44 a share, up by about 9%. That is 16% larger than its intraday low of $6.41 a share, which marked a brand new 52-week low for the inventory.
Nikola mentioned it expects to generate income of between $90 million and $150 million in 2022 on deliveries of between 300 and 500 of its first battery-electric semitrucks, generally known as the Nikola Tre, to prospects.
Non-prototype manufacturing of the vehicles at its plant in Coolidge, Ariz. is predicted to start on March 21, in line with CEO Mark Russell. The corporate delivered its first non-saleable prototype fashions to prospects and sellers within the fourth quarter of final 12 months.
Nikola mentioned it constructed 30 prototypes through the fourth quarter in Arizona, however solely 5 had been commissioned because of provide chain delays. It delivered one other six vehicles up to now this 12 months, the corporate mentioned.
Nikola’s inventory led to a broader enhance Thursday of electrical automobile shares following a big spike in oil costs as a result of Russian invasion of Ukraine.
On a day when oil is over $100 a barrel, “we received extra element on a possible key participant in new Clear Vitality Transportation,” Evercore ISI analyst Chris McNally mentioned in an investor word Thursday.
McNally mentioned Nikola largely beat Wall Avenue’s expectations relating to fourth-quarter outcomes and steering, however long-term funding stays “the important thing query.”
The corporate had a money steadiness of $522 million to finish 2021. It expects to spend between $295 million and $305 million in 2022.
– CNBC’s Michael Bloom contributed to this report.