NKLA Stock Earnings Recap: 3 Things Nikola Investors Need to Know Now

Electric vehicle with fuel cells (FCage) manufacturer Nicholas (NASDAQ:NKLA) saw its stock rise following a better-than-expected second-quarter earnings report. Additionally, the company is making progress toward its goal of reviving its EV battery business following a pullback last year. However, NKLA shares face significant challenges in trying to regain credibility.

Earlier Friday, Nikola revealed encouraging Q2 results, posting a loss per share of $2.67. That figure compared favorably to the expected loss of $2.76. First, the company reported sales of $31.32 million. This value beat the consensus view of $24.70 million by 26.8%.

In the year-ago quarter, Nikola posted a loss of $6 per share, which was also favorable relative to the expected loss of $6.60. At the time, the FCEV specialist also posted revenue of $15.36 million. Again, this measure came in above analysts’ estimates, which called for $14.99 million.

Despite steady financial progress, NKLA stock continues to flounder. Since the beginning of the year, the stock is down about 66% in the charts. Over the past 52 weeks, Nikola has shed more than 85% of its market value.

Here are three things to know right now about earnings in NKLA stock.

Vehicle deliveries a key point in NKLA stock gains

Conformable I’m looking for AlphaNikola said it exceeded the upper end of its guidance range by delivering 72 commercial FCEVs to its dealer network in Q2. Management also noted that in the first three quarters of series production, the company manufactured 147 wholesale vehicles. Currently, Nikola is the only original equipment manufacturer (OEM) with Class 8 FCEVs that are commercially available in North America.

Nikola returns to BEV

Last year, Nikola recalled 209 commercial battery electric vehicles (BEVs) to complete repairs to the underlying battery packs. The recall was in response to several battery fires.

On I’m looking for AlphaNikola noted that it is making progress in returning BEVs to its dealer network and fleet end-users. “We remain on track to complete the withdrawal schedule by the end of 2024,” management said. Significantly, Nikola customers expressed strong satisfaction with returned vehicles and over-the-air updates.

Analysts are surprisingly bullish on NKLA stock

Despite the severe write-down and high financial risks (including ongoing debt issuance), Wall Street analysts are still bullish on NKLA stock. According to TipRanks, experts covering the stock miss a moderate consensus buy. This rating breaks down into two buys, four holds and, surprisingly, no sells. The average price target is $22.80, implying an upside potential of over 168%.

As of the date of publication, Josh Enomoto did not own (either directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to InvestorPlace.com Publishing Guide.

At the time of publication, the Editor-in-Chief held a LONG position in NKLA.