Written by Cláudio Afonso | LinkedIn | X
Nikola shares dropped to a new all-time low of $3.72 on Friday, just days after the company announced a fresh round of layoffs aimed at “adjusting and rescaling” its workforce.
The stock has tumbled 60% over the past three months and is down 85% year-to-date, with shares currently trading at $3.75.
Last week, Nikola informed employees of a new round of layoffs, coming less than 18 months after the company cut 23% of its Arizona workforce. The latest cuts impacted 135 employees, roughly 15% of Nikola’s total workforce.
The management is expected to provide a business update when reporting its third-quarter earnings results on the last day of October.
Nikola‘s chief executive Steve Girsky said the company “must scale our business appropriately for the future” adding that, “To extend our runway, we are adjusting and rescaling our staffing needs”.
In the third quarter of the year, Nikola sold 88 fuel cell trucks, a new record that sent year to date sales figures to 200 units.
The Phoenix-based company aims to provide 14 fueling solutions in North America by year-end and has currently 21 sales and service locations in the region.
In August, during the latest earnings conference call, Nikola’s chief executive Girsky said the company was “creating and monetizing alternative revenue and profit streams”.
“Nikola‘s profitability flywheel is beginning to gain momentum with these national accounts as each end fleet grows its zero emission presence to achieve decarbonization goals. Third, we are creating and monetizing alternative revenue and profit streams,” Girsky stated.
“Nikola realized its initial sale of CARB regulatory credits from the sale of NOx and PM credits. As volume ramps up and new CARB regulations go into effect, these new revenue streams will grow,” the executive added.
The company shares reached an all-time high of $2,819 in 2020, a figure significantly affected by several reverse stock splits the company has executed since then.
These reverse splits reduced the number of outstanding shares, effectively raising the price of each share to ensure compliance with Nasdaq’s $1 minimum trading price rule.
Written by Cláudio Afonso | LinkedIn | X
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