Nikola Corp. stock soared after the company started producing revenue-generating trucks and showed progress on hydrogen infrastructure.
Nikola announced the achievements late Wednesday to Wall Street analysts. Thursday’s gain of up to 19% was the biggest intraday gain since Dec. 23, but after-hours trading saw the shares rise only slightly to $9.67.
The Coolidge, Arizona-based firm sees itself as a leader in clean-energy heavy vehicles, alongside Tesla Inc. and Volvo AB. A supply-chain issue halted the launch of Nikola’s battery-electric truck while the company’s founder was indicted.
Wall Street greeted Nikola’s updates with joy. JPMorgan analysts said they were impressed by the BEV and future fuel-cell trucks. Analyst Joseph Spak of RBC Capital Markets said the automaker is progressing quickly. Nikola’s operational progress and customer demand are “highly encouraging,” according to Deutsche Bank analyst Emmanuel Rosner.
In addition to the current $300,000 sticker price for battery-electric semis, Nikola CEO Mark Russell says the company can raise prices. Nikola expects gross margins to be negative 60% to negative 75% this year, before turning positive next year. The company expects margins of up to 20% in 2025.