Nikola (NASDAQ:NKLA) stock rose more than 25% today on reports that the electric vehicle (EV) maker had wholesaled 72 Class 8 Nikola hydrogen fuel cell trucks in its fiscal second quarter. This is above even the high end of previous guidance to wholesale 60 units. Shares of NKLA stock ended today up by 17%.
What does this mean for the sometimes-troubled truck company?
Well, if today’s stock action is any indicator, it could be a positive sign for things to come. Indeed, Nikola reported that it wholesaled 112 hydrogen fuel cell trucks in the first six months of 2024.
“We have maintained our 2024 momentum with solid wholesale numbers, new customers such as Walmart Canada, and repeat customers like 4GEN and IMC, purchasing vehicles through our dealer network,” said Nikola CEO Steve Girsky.“We are firmly on the field and are continuing to secure our first-mover advantage in zero-emissions Class 8 trucks in North America, as well as with our HYLA hydrogen refuelling solutions.”
Ahead of the company’s Q2 earnings call, which is expected sooner than later given its June 30 quarter-end date, today’s report suggests that Nikola is hiding something more under the hood.
Interestingly, Nikola also recently posted an encouraging job listing on its website.
“Nikola is expanding! We are looking for some great people to be part of the future of zero-emissions transportation. If you have an interest in production assembly work, we want to meet you!” the company stated.
NKLA Stock Enjoys Short Reprieve From Bearish Downturn
Despite today’s gains, NKLA stock has been mostly a cautionary tale this year. Indeed, NKLA is down 58% this year while the S&P 500 is up more than 17% over the same period.
Nikola has had something of a bumpy time of it over the past few years. It seems the firm’s run of bad luck began after company founder and former CEO Trevor Milton released misleading video appearing to show its emissions-less trucks in action.
The company faced tremendous backlash for the disingenuous advertisement ending with Milton’s firing. In fact, in December 2023, Milton was sentenced to four years in prison for wire fraud and securities fraud after being found guilty in October 2022.
Since then, Nikola has struggled to regain its footing. Despite some promising deals in the pipeline, including one with Anheuser-Busch (NYSE:BUD), Nikola has yet to bring in the earnings growth investors have been waiting for.
NKLA stock is down about 96% over the past five years.
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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
