On Thursday, Nikola Corp . (NASDAQ:NKLA) maintained a Neutral rating from BTIG following its fourth-quarter earnings report. The electric truck manufacturer's shares saw a marginal decline of approximately 0.1% after the company posted revenues of around $11.5 million. This figure fell short of the consensus estimate of about $13 million and BTIG's expectation of roughly $12 million, but stayed within the provided guidance range of $11.25 million to $18.75 million.
Nikola had previously announced on January 4th that it wholesaled approximately 35 fuel cell electric vehicles (FCEVs) in the fourth quarter, aligning with its guidance of 30 to 50 vehicles. The production count included about 42 FCEVs, with around seven allocated for customer testing and piloting. The company's first-quarter 2024 revenue guidance is set between $12 million and $14 million, based on the anticipated delivery of 30 to 35 FCEVs. This forecast is notably lower than the consensus estimate of $21 million and BTIG's projection of $17 million. The expected decrease in FCEV truck deliveries is attributed to supplier issues, particularly technology upgrades that are currently constraining component production.
For the full year 2024, Nikola's delivery guidance estimates 300 to 350 FCEV trucks and around 100 battery electric vehicle (BEV) trucks, with BEV sales projected to resume in the third quarter. The company has approximately 150 BEVs in inventory, which require battery pack rebuilds. Given this, BTIG views the target of about 100 BEV trucks as conservative. Additionally, average selling prices (ASPs) for FCEVs are expected to increase as legacy orders are fulfilled, potentially pushing the FCEV ASP above $400,000 later in the year.
Nikola concluded the year with roughly $494 million in cash, marking its highest level since late 2021 or early 2022. The firm anticipates that management will seek to monetize its investments, including a potential $50 million from an Indiana ammonia plant and another $50 million from financing its Coolidge facility. Despite the outlook for increased truck sales throughout 2024, BTIG continues to hold a Neutral position on Nikola, awaiting further proof of the company's execution.
InvestingPro Insights
As Nikola Corp. (NASDAQ:NKLA) navigates the challenges of scaling up production and sales, the financial metrics and expert analysis from InvestingPro provide valuable insights into the company's current position and future prospects. According to real-time data from InvestingPro, Nikola's Market Cap stands at a modest $810.34M, reflecting investor sentiment and market recognition of the company's scale and potential. Despite the company's efforts to ramp up production, it is important to note that Nikola is not currently profitable, with a negative P/E Ratio of -0.44, which further declined to -0.81 over the last twelve months as of Q3 2023.
This financial performance is corroborated by an InvestingPro Tip that highlights Nikola's rapid cash burn, which is a critical consideration for investors given the capital-intensive nature of the automotive industry. The company's Gross Profit Margin also raises concerns, as it stands at a deeply negative -717.83% for the same period, underscoring the cost challenges Nikola faces as it strives to establish itself in the competitive electric vehicle market.
Moreover, analysts do not anticipate Nikola will be profitable this year, an InvestingPro Tip that aligns with the company's recent earnings report and forward-looking statements. With a backdrop of high price volatility and a significant drop in share price over the last year, as indicated by a 1 Year Price Total Return of -69.84%, the road ahead for Nikola appears to be fraught with uncertainty.
For investors seeking a deeper dive into Nikola's financials and market performance, InvestingPro offers over 15 additional tips, providing a comprehensive analysis of the company. To access these insights, visit InvestingPro's NKLA page. Use the exclusive coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, further empowering your investment decisions.
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