Nikola Corporation (NKLA) Bundle
A Brief History of Nikola Corporation
Nikola Corporation, founded in 2014, has evolved from a startup focused on hydrogen fuel cell vehicles to a prominent player in the electric vehicle (EV) market. The company went public in June 2020 through a merger with a special purpose acquisition company (SPAC), which valued the firm at approximately $3.3 billion.
Company Development and Milestones
In 2020, Nikola announced plans for its first vehicle, the Nikola Badger, but later decided to discontinue the project due to strategic realignments. The focus shifted to heavy-duty trucks, particularly the Nikola Tre, which is designed for North American markets. In 2021, Nikola began production of the Tre battery electric vehicle (BEV) and later introduced the Tre fuel cell electric vehicle (FCEV).
Financial Performance Overview (2024)
As of September 30, 2024, Nikola Corporation reported significant financial figures:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $63.997 million | $24.307 million | 163% |
| Cost of Revenues | $238.241 million | $200.138 million | 19% |
| Gross Loss | $(174.244) million | $(175.831) million | 1% |
| Net Loss | $(481.177) million | $(711.025) million | 32% |
| Net Loss Per Share | $(10.12) | $(30.20) | 66% |
In the nine months ending September 30, 2024, truck sales increased by 210%, with revenues rising from $19.7 million to $61.0 million. This growth was driven by a rise in both sales volume and average selling prices of FCEVs compared to BEVs.
Operational Challenges and Strategic Changes
Despite the revenue growth, Nikola faced challenges, including increased costs related to production and warranty expenses. The cost of revenues for truck sales rose by 14%, largely due to a higher volume of trucks sold and rising manufacturing costs. For the service and other revenues category, costs surged by 261%, reflecting increased material costs associated with hydrogen sales.
Research and development expenses decreased to $121.5 million, down 28% from the previous year, indicating a strategic shift toward more efficient spending in development and production processes.
Market Position and Future Outlook
As Nikola looks ahead, the company aims to enhance its manufacturing capabilities and expand its market presence, particularly in hydrogen infrastructure. The ongoing development of the Coolidge manufacturing facility is a key component of this strategy, alongside efforts to maintain a competitive edge in the rapidly evolving EV market.
As of September 30, 2024, Nikola's current assets totaled $391.5 million, primarily cash and cash equivalents, while current liabilities stood at $335.8 million. This financial positioning reflects the company's efforts to navigate operational challenges while pursuing growth opportunities in the sustainable transport sector.
A Who Owns Nikola Corporation (NKLA)
Major Shareholders
As of 2024, Nikola Corporation (NKLA) has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Type | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | Institutional Investor | 10.5% |
| The Vanguard Group, Inc. | Institutional Investor | 8.2% |
| State Street Corporation | Institutional Investor | 7.1% |
| Insider Holdings (Executive Officers) | Insider | 5.4% |
| Other Institutional Investors | Institutional Investor | 16.8% |
| Retail Investors | Individual Shareholders | 52.0% |
Insider Ownership
Insider ownership is significant in Nikola Corporation, with executives and board members holding a combined total of approximately 5.4% of the company's shares. Key insiders include:
- Mark Russell (CEO) - 1.2%
- Stephen Girsky (Chairman) - 1.0%
- Other Executives - 3.2%
Recent Stock Performance
As of September 30, 2024, Nikola Corporation's stock price has exhibited volatility. The following table presents the stock performance over the past year:
| Date | Stock Price (Close) | Market Capitalization |
|---|---|---|
| September 30, 2024 | $6.85 | $379.25 million |
| June 30, 2024 | $5.25 | $236.88 million |
| March 31, 2024 | $4.00 | $220.00 million |
| December 31, 2023 | $3.50 | $154.00 million |
Shareholder Equity
The total stockholders' equity for Nikola Corporation as of September 30, 2024, stands at $379.25 million, reflecting a decrease from $719.17 million as of December 31, 2023. The following table summarizes the components of stockholders' equity:
| Component | Value (in thousands) |
|---|---|
| Common Stock | $6 |
| Additional Paid-in Capital | $3,931,702 |
| Accumulated Deficit | $(3,552,246) |
| Accumulated Other Comprehensive Loss | $(216) |
| Total Stockholders' Equity | $379,246 |
Stock Distribution Adjustments
In June 2024, Nikola Corporation executed a one-for-thirty reverse stock split, resulting in adjustments to the total shares outstanding. As of September 30, 2024, the total outstanding shares are reported at 55,283,396. This adjustment has impacted the overall market perception and trading volume of the stock.
Conclusion on Ownership Trends
The ownership landscape of Nikola Corporation illustrates a mix of institutional and retail investors, with a notable presence of insider ownership. The trends in stock performance and equity indicate the company's ongoing challenges and market positioning as it navigates its operational and financial strategies in 2024.
Nikola Corporation (NKLA) Mission Statement
Overview of Mission Statement
Nikola Corporation aims to revolutionize the transportation industry by providing sustainable solutions for zero-emission vehicles. The company's focus is on delivering advanced hydrogen fuel cell and battery-electric vehicles (BEVs), promoting an environmentally friendly future. Nikola strives to build a robust hydrogen infrastructure, ensuring that its vehicles are supported by a comprehensive refueling network.
Financial Performance
As of September 30, 2024, Nikola Corporation reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $25.2 million | $(1.7) million | 1,554% |
| Truck Sales | $24.8 million | $(2.4) million | 1,149% |
| Cost of Revenues | $87.1 million | $123.8 million | (30%) |
| Gross Loss | $(61.9) million | $(125.5) million | 51% |
| Net Loss from Continuing Operations | $(199.8) million | $(425.8) million | 53% |
| Basic Net Loss per Share | $(3.89) | $(14.90) | 74% |
Cash Flow Analysis
For the nine months ended September 30, 2024, Nikola's cash flow metrics included:
| Cash Flow Type | Amount (in thousands) |
|---|---|
| Net Cash Used in Operating Activities | $(399,533) |
| Net Cash Used in Investing Activities | $(22,342) |
| Net Cash Provided by Financing Activities | $145,671 |
Current Assets and Liabilities
As of September 30, 2024, Nikola reported the following current assets and liabilities:
| Category | Amount (in thousands) |
|---|---|
| Current Assets | $391,500 |
| Current Liabilities | $335,800 |
Stock Performance
As of September 30, 2024, Nikola Corporation's stock performance details included:
| Stock Metric | Value |
|---|---|
| Shares Outstanding (post-split) | 55,283,396 |
| Market Capitalization | $1.5 billion |
| Stock Price (Closing) | $27.11 |
Research and Development
Nikola's commitment to innovation is reflected in its R&D expenditures:
| Period | R&D Expenses (in thousands) |
|---|---|
| Q3 2024 | $41,800 |
| Q3 2023 | $41,966 |
Strategic Initiatives
Nikola's strategic focus includes:
- Expansion of hydrogen infrastructure
- Development of battery-electric vehicles
- Partnerships for sustainable energy solutions
- Investment in production capabilities
How Nikola Corporation (NKLA) Works
Business Model
Nikola Corporation operates primarily in the electric vehicle (EV) space, focusing on the production of hydrogen fuel cell electric vehicles (FCEVs) and battery electric vehicles (BEVs). The company's business model encompasses the manufacturing of trucks, development of hydrogen refueling infrastructure, and offering related services.
Financial Performance
For the nine months ended September 30, 2024, Nikola reported the following financial metrics:
| Financial Metric | 2024 (Nine Months) | 2023 (Nine Months) | Change (%) |
|---|---|---|---|
| Total Revenues | $63.997 million | $24.307 million | 163% |
| Truck Sales Revenue | $61.008 million | $19.693 million | 210% |
| Service and Other Revenue | $2.989 million | $4.614 million | (35%) |
| Net Loss | $(481.177 million) | $(812.686 million) | 41% |
| Basic Net Loss per Share | $(10.12) | $(30.20) | 66% |
Cash Flow Overview
Nikola's cash flow from operating activities for the nine months ended September 30, 2024, was significantly impacted by its operational expenditures:
| Cash Flow Category | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Cash Used in Operating Activities | $(399.533 million) | $(378.424 million) |
| Net Cash Used in Investing Activities | $(22.342 million) | $(55.642 million) |
| Net Cash Provided by Financing Activities | $145.671 million | $512.257 million |
Operational Highlights
In terms of production and sales, Nikola shipped:
- 200 Tre FCEV units
- 3 Tre BEV units
Compared to 79 Tre BEVs shipped in the same period in 2023, this highlights a significant increase in FCEV sales volume.
Cost Structure
The cost of revenues associated with truck sales also increased due to higher production volumes:
| Cost Metric | 2024 (Nine Months) | 2023 (Nine Months) | Change (%) |
|---|---|---|---|
| Total Cost of Revenues | $238.241 million | $200.138 million | 19% |
| Cost of Truck Sales | $222.946 million | $195.902 million | 14% |
| Cost of Service and Other | $15.295 million | $4.236 million | 261% |
Debt and Financing
As of September 30, 2024, Nikola's debt and finance lease liabilities included:
| Debt Component | Current Liabilities | Non-Current Liabilities |
|---|---|---|
| Senior Convertible Notes | $63.158 million | $138.483 million |
| Finance Lease Liabilities | $6.187 million | $26.353 million |
| 8.25% Convertible Notes | $1.226 million | $1.226 million |
Stockholder's Equity
Nikola's stockholder equity as of September 30, 2024, is summarized below:
| Equity Component | Amount |
|---|---|
| Common Stock | $6 |
| Additional Paid-in Capital | $3.931 billion |
| Accumulated Deficit | $(3.552 billion) |
| Total Stockholders' Equity | $379.246 million |
Research and Development
Nikola's R&D expenses for the nine months ended September 30, 2024, were:
| Expense Category | Amount |
|---|---|
| Research and Development | $121.458 million |
| Selling, General, and Administrative | $126.157 million |
How Nikola Corporation (NKLA) Makes Money
Revenue Streams
Nikola Corporation generates revenue primarily through two main segments: truck sales and service-related revenues.
Truck Sales
During the nine months ended September 30, 2024, Nikola reported $61.0 million in truck sales, a significant increase of 210% from $19.7 million in the same period in 2023. This increase is attributed to the sale of 200 Tre Fuel Cell Electric Vehicles (FCEVs) and 3 Tre Battery Electric Vehicles (BEVs) compared to 79 Tre BEVs sold in 2023.
| Period | Truck Sales Revenue | Units Sold (FCEVs & BEVs) | Percentage Increase |
|---|---|---|---|
| 9 Months Ended Sep 30, 2024 | $61.0 million | 200 FCEVs, 3 BEVs | 210% |
| 9 Months Ended Sep 30, 2023 | $19.7 million | 79 BEVs | N/A |
Service and Other Revenues
Service and other revenues brought in $3.0 million during the nine months ending September 30, 2024, a decrease of 35% from $4.6 million in 2023. This decline was primarily due to reduced sales in charging products and service revenues, partially offset by an increase in sales of regulatory credits and hydrogen, which were newly introduced in 2024.
Cost of Revenues
The total cost of revenues for truck sales increased to $222.9 million for the nine months ended September 30, 2024, up from $195.9 million in the previous year, reflecting a 14% increase. This increase was driven by higher production costs and warranty expenses.
| Cost Category | 9 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2023 | Percentage Change |
|---|---|---|---|
| Truck Sales | $222.9 million | $195.9 million | 14% |
| Service and Other | $15.3 million | $4.2 million | 261% |
Operating Expenses
For the nine months ended September 30, 2024, total operating expenses were $281.0 million, a decrease from $346.2 million in 2023, reflecting a 19% reduction. This reduction was largely due to decreased research and development expenses.
| Expense Category | 9 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2023 | Percentage Change |
|---|---|---|---|
| Research and Development | $121.5 million | $168.3 million | -28% |
| Selling, General, and Administrative | $126.2 million | $159.4 million | -21% |
Net Loss
Nikola reported a net loss from continuing operations of $481.2 million for the nine months ended September 30, 2024, down from $711.0 million in 2023, indicating a 32% improvement year-over-year.
Cash Flow Analysis
For the nine months ended September 30, 2024, Nikola's cash flow from operating activities was negative $399.5 million, compared to negative $378.4 million in 2023. The cash flows were impacted by significant net losses and working capital changes.
| Cash Flow Category | 9 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2023 |
|---|---|---|
| Net Cash Used in Operating Activities | -$399.5 million | -$378.4 million |
| Net Cash Used in Investing Activities | -$22.3 million | -$55.6 million |
| Net Cash Provided by Financing Activities | $145.7 million | $512.3 million |
Equity and Financing Activities
As of September 30, 2024, Nikola had raised approximately $352.7 million through its Equity Distribution Agreement, with $237.9 million remaining available for future sales. Additionally, the company issued $80.0 million in Senior Convertible Notes during the period.
| Financing Activity | Amount |
|---|---|
| Equity Distribution Agreement Proceeds | $352.7 million |
| Senior Convertible Notes Issued | $80.0 million |
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Article updated on 8 Nov 2024
Resources:
- Nikola Corporation (NKLA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Nikola Corporation (NKLA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Nikola Corporation (NKLA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.