Release Date: October 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Nikola Corp (NKLA, Financial) achieved record sales of hydrogen fuel cell electric trucks in Q3 2024, with a 78% growth in fleet adoption.
- The company expanded its dealer network in Southern California, increasing access to both fuel cell and battery electric vehicles.
- Nikola Corp (NKLA) is the only OEM offering two zero-emission powertrains on one commercial Class 8 platform in North America.
- The company reported a significant increase in hydrogen fuel dispensed at its commercial stations, up nearly 350% year-to-date.
- Nikola Corp (NKLA) has successfully returned 78 BEV 2.0 trucks to end fleets and dealers, receiving overwhelmingly positive feedback.
Negative Points
- Nikola Corp (NKLA) reported a gross loss of $62 million in Q3 2024, an increase from the $55 million loss in Q2.
- The company's unrestricted cash declined by $58 million from Q2, ending the quarter with $198 million.
- Nikola Corp (NKLA) anticipates needing to raise additional capital as existing cash is only sufficient to fund operations into Q1 2025.
- The average selling price (ASP) for fuel cell vehicles decreased by 7% from Q2, reflecting softer pricing as volume increases.
- The company faces challenges in scaling operations and optimizing unit economics, requiring significant volume increases.
Q & A Highlights
Q: In the long run, how and when do you see the company being profitable?
A: Thomas Okray, Executive Vice President, Principal Financial Officer and Principal Accounting Officer, explained that Nikola's business plan remains unchanged, focusing on optimizing operations to scale efficiently. The company is gaining traction with national accounts, which is crucial for profitability. Nikola's first-mover advantage in zero-emission solutions positions it well to meet corporate sustainability goals.
Q: Nikola has the ability to flex production of both the FCEV and BEV. Which truck is more profitable? Will you continue to offer both?
A: Stephen Girsky, President and CEO, stated that Nikola will continue to offer both trucks, emphasizing flexibility to meet customer demand. The BEVs being sold from Nikola inventory will be cash contribution margin positive, and the company plans to leverage this flexibility as they progress through the recall.
Q: Is Nikola actively looking for partners that can provide capital to support the company?
A: Stephen Girsky confirmed that Nikola is actively engaging with potential partners who value their zero-emission initiatives. The company is building a coalition of like-minded partners to push forward the hydrogen economy, including those with corporate decarbonization goals and hydrogen producers.
Q: With the positive feedback on the BEV, will there be a change in strategy to actively market the BEV starting next year?
A: Stephen Girsky mentioned that Nikola is experiencing a pull from the market for the BEV. The company plans to sell from its inventory, which will be margin positive, and will decide on future production based on market demand and feedback.
Q: Can you provide an update on your R&D efforts, especially in light of other companies making advancements in fuel cell technology?
A: Stephen Girsky stated that Nikola continues to improve its existing products and is focused on cost and weight reduction. The company is also exploring next-generation products to enhance efficiency and welcomes other companies entering the hydrogen space to build the ecosystem.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
