Electrical truck producer Nikola Corp. NKLA is but to return a number of of the battery electrical vehicles it recalled in August final yr, firm CFO Tom Okray mentioned on Thursday.
What Occurred: Whereas the corporate has returned 78 vehicles that had been a part of the recall again to clients and sellers, it’s but to ship one other 81 vehicles that had been a part of the recall, Okray mentioned on the corporate’s third-quarter earnings name on Thursday.
“I feel the essential level to repeat is roughly 150 in our stock and one other 81 as a part of the recall. So, you place these collectively, you bought roughly 230 vehicles that now we have optionality with,” he mentioned.
Nikola initially started delivering battery electrical vehicles earlier than its hydrogen gas cell electrical vehicles. Nevertheless, following a number of fireplace incidents, the BEV vehicles had been subsequently recalled in August 2023. The corporate is now returning the recalled battery electrical vehicles to clients with improved battery packs, renamed BEV 2.0.
Why It Issues: In February, Nikola mentioned that the corporate is eyeing deliveries of at the least 100 battery-electric vehicles this yr after fixing points that led to a number of fireplace incidents final yr. The corporate then additionally mentioned that it will return all of the recalled autos by the tip of Q2 or Q3 however there has seemingly been a delay.
Nikola didn’t instantly reply to Benzinga’s request for touch upon the explanations behind the delay.
Nikola on Thursday reported third-quarter income of $25.18 million, lacking analyst estimates of $37.23 million. The EV maker reported a third-quarter adjusted lack of $2.75 per share, lacking estimates for a lack of $2.35 per share.
Value Motion: Nikola shares closed down 7% at $3.93 on Thursday. The inventory is down 84.3% year-to-date, in line with information from Benzinga Professional.
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