Nikola has $900 million in the bank, lost $117 million last quarter
Nikola’s new leadership may be bringing discipline to its product roadmap. …
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Electric truck-maker Nikola was widely ridiculed in September when a short-selling firm revealed that its first truck, the Nikola One, never worked. A promotional video of the truck “in motion” actually showed the vehicle rolling down a hill.
But the company’s latest quarterly financial results, released Monday, show that Nikola has something it didn’t have in 2016: truckloads of cash. Specifically, Nikola has $900 million in the bank—most of it raised when the company went public back in June.
Nikola says it spent $117 million in the third quarter of 2020 while bringing in no revenue. The losses were smaller than some analysts had expected, and investors reacted positively to the results, sending Nikola’s stock price up by 2 percent in after-hours trading.
Nikola’s war chest means that, despite the company’s shambolic origins, Nikola might still have a shot to become a viable truckmaker. The company’s cash should last about two years at the current burn rate. So Nikola has until 2022 to either begin generating revenues or raise more money from investors.
Nikola gives the Badger a cold shoulder
Under Nikola founder Trevor Milton, Nikola was trying to launch several products at the same time. But while $900 million is a lot of money by most standards, it’s probably not enough money to bring multiple vehicles
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