Nikola (NASDAQ:NKLA), which has been trying to commercialize hydrogen and battery-fueled semi-trucks, saw its chief financial officer resign after a disappointing earnings report.
Anastasiya Pasterick said she will resign effective Dec. 1. Finance will then report to CEO Stephen Girsky.
NKLA stock was set to open for trade this morning at about $1.03 per share, a market capitalization of $1.05 billion.
Bad News Gets Worse
Nikola reported on Nov. 2 that it lost $425 million, 50 cents per share, during the quarter ending in October, delivering just 3 vehicles during the period.
The company issued a recall on its battery-powered trucks in August, at a cost then estimated at $61.8 million. After its existing inventory is sold and paid for in early 2024, the net loss is now estimated at $38.1 million. Nikola is now focused on hydrogen-fueled trucks. It says it has enough hydrogen supply to get into early 2024.
On Nov. 20, NKLA stock was trading around the same price it was just before the earnings news came out.
I warned in August after CEO Michael Lohscheller resigned and the recall was announced, that the company’s future was in doubt. The warning was repeated later that month. Nikola has lost 69% of its value since Aug. 3.
Nikola founder Trevor Milton, who was convicted of fraud last year over his promotion of the company, is due to be sentenced on Nov. 28.
Despite all the bad news, some analysts still support the stock. They insist the production of battery-powered trucks will restart and that the hydrogen-powered trucks can succeed.
NKLA Stock: What Happens Next?
Lithium-ion batteries may not have enough energy density to power 18-wheelers. And hydrogen supplies are under pressure after Plug Power (NASDAQ:PLUG) reported it may have to shut down.
Both industries face a reckoning with their past and an overhaul of their basic technology for the future.
As of this writing, Dana Blankenhorn 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.
