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April 4 (Reuters) – Nikola beat estimates for deliveries of its large hydrogen rigs in the first quarter, a sign that it is making progress in its transition to battery-electric truck technology after some missteps that affected the its share price.
The electric truck manufacturer announced Thursday that it had delivered 40 vehicles in the first quarter, compared to 30 units estimated by a consensus of four analysts surveyed by Visible Alpha.
These optimistic delivery figures come at a time when the electric vehicle industry faces challenges from falling demand, as well as high interest rates intended to curb inflation, which are straining budgets in consumer spending, forcing them to opt for cheaper hybrid vehicles.
Nikola produced 43 trucks in the three months to March 31 and said the remaining hydrogen-powered big rigs in its inventory at the end of the quarter are expected to be delivered in early April.
“We expect further sales growth in the coming quarters as our HYLA hydrogen fueling solutions come online,” said CEO Steve Girsky.
The company opened two fueling stations for its hydrogen trucks in March, one in California and the other in Alberta, Canada.
Nikola in February set a goal of delivering up to 350 hydrogen-powered fuel cell electric trucks in 2024 and said it delivered 35 units in the fourth quarter.
The company’s shares were trading up 10%, having lost more than 90% of their value since its 2020 IPO.
Nikola faced a tumultuous 2023 after company founder Trevor Milton was sentenced to four years in prison after a jury found him guilty of fraud.
In August 2023, the company had to recall all of its battery-powered trucks that it had delivered to customers after investigations revealed a coolant leak inside a battery causing fires in its vehicles .
Nikola said in February this year that it would return all reworked battery trucks to customers by the start of the third quarter. (Reporting by Zaheer Kachwala in Bengaluru; editing by Sriraj Kalluvila and Shilpi Majumdar)
