Nikola Corp. (NASDAQ: NKLA) mentioned it might pause manufacturing of the Tre BEV after it posted an enormous loss for the primary quarter of 2023.
Nikola mentioned it produced 63 items of the Tre BEV in Q1, with 31 making their solution to sellers. Nevertheless, it seems demand for the automobiles has slowed significantly.
Nikola mentioned stock has swelled to the purpose that manufacturing might be stopped so it could possibly make enhancements to the manufacturing traces at its Coolidge, Arizona, manufacturing facility.
“As we now have ample stock of the battery electrical truck, we’ll briefly pause manufacturing in Coolidge as we modify the meeting line to accommodate each hydrogen gas cell and battery electrical builds on the identical line. After we resume manufacturing in Coolidge, the battery electrical Tre will stay in our lineup as a build-to-order product.”
The mission will start “on the finish of Might,” based on Nikola’s quarterly announcement.
Nikola additionally famous it noticed a “important improve” in gross sales in Q1 in comparison with final yr. It had locked up a number of massive orders for the Tre BEV final yr, nevertheless it seems the marketplace for its hydrogen gas cell automobiles is way greater at the moment.
The corporate mentioned it has orders from 12 firms that make up 140 complete items of the FCEV Tre.
“Nikola had a really strong quarter, constructing gross sales momentum with Class 8 battery electrical truck deliveries to clients, and orders for 140 hydrogen gas cell vans from clients,” Nikola CEO Michael Lohscheller mentioned. “We’ve the correct merchandise on the proper time, and as we transfer ahead, we shall be specializing in the North American market, hydrogen gas cell vans, the HYLA hydrogen refueling enterprise, and autonomous applied sciences.”
Nevertheless, financially the corporate didn’t carry out effectively, and its web loss widened from $152.94 million to $169.09 million.
Nikola shares had been down round 7.5 p.c at 10:17 AM on the East Coast.
Disclosure: Joey Klender just isn’t a NKLA Shareholder.
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