By Adam Eckert
Last month, Nikola’s 2023 annual meeting of sharehZenger News was adjourned to Aug. 3 after the company did not receive enough votes to approve its proposal to increase the number of authorized shares of its common stock.
A proposed amendment to Section 242 of the Delaware General Corporation Law is expected to be effective when the meeting reconvenes. The amendment will change the required votes from a majority of the outstanding common stock to a majority of the shares actually voting on the proposal.
“If this were the case last month, the company would have had enough votes to approve the proposal,” said Benzinga. Before the market opens Friday, Nikola will report its second-quarter financial results. The company is expected to report a loss of 22 cents per share on revenue of $15.43 million.
According to Zenger News Pro, Nikola has met or exceeded EPS estimates in 11 straight quarters. Although the company has reported widening losses, the losses have been better than feared. Revenue numbers have been more hit-and-miss. The company underwhelmed analysts in each of the last two quarters, but beat expectations in the prior three quarters.
Last quarter, Nikola announced a strategic refocus of its core business. The company announced plans to focus on the North American market, hydrogen fuel cell trucks, HYLA hydrogen ecosystem and autonomous technologies.
Nikola also said it produced 63 Tre battery electric vehicles in the quarter and delivered 31 of them to dealers, noting that it was beginning to see an uptick in retail sales. Nikola has already reported second-quarter production and delivery numbers. Last month, the company said it produced 33 vehicles. It delivered 45 vehicles via wholesale and 66 via its retail channel.
“It is not easy being a pioneer in the zero-emission Class 8 truck space, but we are witnessing a remarkable surge in momentum,” said Michael Lohscheller, CEO of Nikola.
Nikola’s shares are up nearly 100% over the last month, but the rally didn’t get started until the company announced an agreement with BayoTech to advance reliable hydrogen supply for commercial fuel cell electric vehicle fleets in mid-July. At the end of the month, shares caught another boost after the company said JB Hunt Transport plans to purchase 13 Nikola zero-emission Class 8 trucks.
“Nikola has also commenced production of its hydrogen fuel cell electric truck with an estimated range of 500 miles,” said the company on a tweet.
Investors will want to watch for demand updates and production timelines when the company reports at the end of the week. NKLA Price Action: Nikola shares were down 5.29% at $2.96 at the time of publication, according to Zenger News Pro.
Produced in association with Benzinga
Edited by Eunice Anyango Oyule and Judy J. Rotich
