EV Truck Maker Nikola But To Return Many BEVs Recalled Final Yr, Says CFO – Nikola (NASDAQ:NKLA)

Electrical truck producer Nikola Corp. NKLA is but to return a number of of the battery electrical vans it recalled in August final 12 months, firm CFO Tom Okray mentioned on Thursday.

What Occurred: Whereas the corporate has returned 78 vans that have been a part of the recall again to clients and sellers, it’s but to ship one other 81 vans that have been a part of the recall, Okray mentioned on the corporate’s third-quarter earnings name on Thursday.

“I believe 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 vans that now we have optionality with,” he mentioned.

Nikola initially started delivering battery electrical vans earlier than its hydrogen gasoline cell electrical vans. Nevertheless, following a couple of fireplace incidents, the BEV vans have been subsequently recalled in August 2023. The corporate is now returning the recalled battery electrical vans to clients with improved battery packs, renamed BEV 2.0.

Why It Issues: In February, Nikola mentioned that the corporate is eyeing deliveries of no less than 100 battery-electric vans this 12 months after fixing points that led to a number of fireplace incidents final 12 months. The corporate then additionally mentioned that it might return all of the recalled automobiles 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.

Worth 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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Picture courtesy: Nikola