“Without additional shares, our ability to raise the capital we need to further our mission will be out of reach,” Lohscheller urged. If Nikola’s voting shareholders do end up rejecting the proposal, that would be perfectly understandable, in my opinion, as a bigger pool of shares could dilute the value of the current investors’ shares.ĬEO Michael Lohscheller is practically begging Nikola’s shareholders to allow the company to issue and sell more stock shares. However, reportedly, Nikola’s proposal (and/or the meeting for this proposal) to issue and sell more shares has been adjourned to a later date. Of course, Nikola could try to raise cash by selling shares, and that’s exactly what the company tried to do. EV market, but that’s easier said than done when the company’s balance of cash and cash equivalents has dwindled from $233.4 million at the end of 2022 to just $121.1 million as of March 31, 2023. Making matters worse, Nikola’s net loss widened from an already alarming $152.9 million in the year-earlier quarter to $169.1 million in Q1 2023.Īdditionally, if you read between the lines in Nikola’s first-quarter press release, you’ll probably discern that the company basically gave up on trying to sell electric trucks in Europe. In 2023’s first quarter, Nikola generated $11.1 million in revenue, thereby falling short of the analyst community’s prediction of $12.9 million. It gets even worse when we drill down to the dirty details. Furthermore, analysts don’t expect Nikola to post a profit for the current quarter. The rest of the story, however, is that Nikola has never been profitable. To be fair and balanced, I’ll acknowledge that Nikola has consistently met or exceeded analysts’ quarterly EPS forecasts. Nikola: The Good and Bad News About Its Earnings and Capital Position So, don’t pin your hopes on Nikola now, even if the share price might pop, as this is probably just a head-fake within a long-term decline. Today, the SPAC boom is mostly a SPAC bust, and the EV winners are being separated from the EV sinners. Nikola is an electric truck manufacturer that was part of the electric vehicle (EV) boom and the SPAC boom of 2020 to 2021. I am bearish on NKLA stock because Nikola’s financials are in bad shape, and the stock could end up being delisted from the Nasdaq exchange sooner or later. As Nikola ( NASDAQ:NKLA) stock pushes higher on no company-specific news, I’m warning serious investors that a short squeeze isn’t the same thing as a Buy signal.
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