Nikola’s Deliveries Rise While Production Falls Amid Manufacturing Pause

Nikola said Wednesday that its deliveries rose in the second quarter, but production fell by nearly half because of a recent pause to modify its assembly line.

The Phoenix-based startup said production fell to 33 units in the quarter ended June 30, from 63 in the previous quarter. Deliveries rose to 66 trucks through retail channels, compared with 33 in the previous quarter, and delivered 45 through wholesale, up from 31.

The company paused production in May at its plant to modify the assembly line for its new models. Nikola plans to begin producing hydrogen fuel cells this month and selling trucks with those cells later this year. As of May, the company had a backlog of about 140 orders. The company said production will restart this month.

As production falls for Nikola, other electric-vehicle makers are gaining ground. Tesla said its deliveries grew 83% in its latest quarter, and EV startup Rivian Automotive said production tripled in the latest quarter compared with the prior year.

Nikola struggled with high costs as it attempted to grow its assembly line. The company said last month it would lay off 270 people, about 10% of its workforce, amid a broader effort to cut cash expenditure to under $400 million by next year.

Last month, a fire at Nikola’s Phoenix headquarters damaged multiple trucks, and the company said it suspected foul play. No one was injured.

Nikola proposed a plan to issue more stock shares to raise funds, but that gambit was rejected by shareholders in early June. The company adjourned its annual meeting of shareholders until Thursday, giving more time to rally votes to pass the stock issuance.

The company has warned that if the plan is rejected, its “business objectives will be delayed or compromised.”

Nikola has persisted in cutting costs across the board as the vote looms. The company said it had shed its subsidiary, Romeo Power, on Monday after acquiring the company in October. The battery-making group, purchased by Nikola for about $144 million in stock, was transferred to SG Service last week, the company said.

The acquisition of Romeo Power was originally billed as a way of navigating bottlenecks in the production process as Nikola sought to quickly churn out electric trucks. 

Nikola has shifted focus in recent months to the North American market, exiting a European joint venture with automaker Iveco Group in May. 

After going public in 2020 with a market cap of over $3 billion, the company’s value jumped with Trevor Milton

Shares of Nikola have shed nearly three quarters of their value in the past 12 months. The company said in May that it had received notice from the Nasdaq that it wasn’t in compliance with the minimum bid price requirement of $1. The stock has since regained compliance.

Shares of Nikola rose 5% to $1.44 in afternoon trading.

Write to Ben Glickman at [email protected]

Corrections & Amplifications
Nikola’s production was nearly halved because of a planned manufacturing pause. An earlier version of this article incorrectly said a fire at the company’s headquarters contributed to electric truck production being nearly halved. (Corrected on July 5)