The sometimes troubled electric truck startup, Nikola (NASDAQ:NKLA), is enjoying a pleasant uptick today despite mounting supply chain concerns. NKLA stock is up nearly 4% this morning, even after several senior executives reportedly left the company.
So, what’s going on with Nikola lately?
On Tuesday, news outlet Electrek reported that the electric vehicle (EV) company has lost nearly the entirety of its supply chain leadership in the past several months. According to sources familiar with the matter, four of the top supplier chain executives have departed the company recently.
As stated in the report, several leaders of Nikola’s supply line experienced in EVs have left, including:
- Director of Supply Chain and Purchasing, Matthew Jenkins
- Global Head of Supply Chain, Mike Chaffins
- Director of Purchasing, Mike Gallager
According to one anonymous source, Nikola Chief Financial Officer Kim Brady is largely to blame for the departures. Apparently, despite having little to no supply chain background, the supply chain team reported directly to Brady.
Nikola has issued a response however, which may be the company’s saving grace today. What else do you need to know about Nikola’s ongoing woes?
NKLA Stock Still in Murky Water Despite Today’s Jump
Indeed, Nikola issued a statement in response to the scathing supply chain allegations:
“Nikola’s supply chain department is intact and Nikola continues to hire. The supply chain department has been intentionally strengthened with new and existing leadership. Nikola is focusing its efforts on getting its first BEVs and FCEVs to market and continues to hire strategically for critical roles. We have nearly 1000 employees now, including 220 new hires within the last 120 days. Nikola encourages you to listen to our earnings call on Feb. 24 to get an accurate overview of the company and its progress.”
If you recall, Nikola has been the source of controversy after accusations surfaced that the company had lied to investors about its technical capabilities. As a result, Nikola lost more than $250 million in value as its stock plummeted, even prompting General Motors (NYSE:GM) to back out of their partnership arrangement.
Additionally, Nikola currently owes the U.S. Securities and Exchange Commission $125 million in fraud charges. And founder and former Chief Executive Trevor Milton confronts criminal fraud allegations.
It’s unclear what to expect in the company’s quarterly report on Feb. 24. Regardless, Nikola fans and EV bulls will surely be waiting with bated breath.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
