(Bloomberg) — Nikola Corp. reported a narrower-than-expected loss for its latest quarter but kept investors guessing about a partner for its hydrogen-fueling network after missing a self-imposed year-end deadline.
The startup, whose market value once briefly topped Ford Motor Co.’s though it has yet to build a vehicle, posted an adjusted loss Thursday of 17 cents a share in the fourth quarter, compared with analysts’ consensus estimate for a 24-cent loss and a 16-cent loss in the year-earlier period.
Nikola provided no update of its search for a promised partner on ambitious plans to develop as many as 700 hydrogen fueling stations in the U.S. It originally promised to find another company to help build out that network by the end of 2020. But the company said it remained on track to hit other milestones as it inches toward production of clean-energy semi trucks.
“We now believe Nikola is in the best position the company has ever been to realize our business plan,” Mark Russell, chief executive officer, said on a call with analysts after noting a scaled-down agreement with General Motors Co. and the cancellation of its electric-powered garbage truck program.
Nikola shares rose as much as 5.2% in after-hours trading following the release. Earlier the stock closed down 6.8% to $19.72.
Big Name Competition
The Phoenix-based company is one of a number of newer and legacy automakers developing clean-energy commercial vehicles and betting on fuel cells as a viable fuel for long-distance transportation. While it is also working on battery-electric big rigs, Nikola’s main focus is hydrogen-powered fuel-cell trucks, a nascent field with competition from Toyota Motor Corp., Hyundai Motor Co. and and its own supplier, GM.
Earlier this week, the startup said a long-range version of its zero-emission semi will get as much as 900 miles on a tank of hydrogen when it debuts in 2024.
While Nikola did not cite any specific impact to its business from the pandemic, it pointed out in its statement the ongoing supply-chain issues from Covid-19 that are hampering all automakers.
Last year was a roller-coaster ride for Nikola, which was one of the first in a wave of EV companies going public through reverse mergers with blank-check companies, or SPACs.
After seeing its market value reach almost $29 billion in early June, the company was brought quickly back down to earth in September by a short-seller’s report that accused Nikola and founder Trevor Milton of deceiving investors and lying about its technology. The company and Milton denied those claims, but Nikola’s market value has fallen to less than $8 billion.
Regulatory Probes
The short-seller’s report resulted in Department of Justice and Securities and Exchange Commission investigations, and caused GM to significantly pare back a proposal to take a stake in Nikola and partner on commercial vehicles.
Read More: Nikola Confronts Future of Doubts on Chair Exit, Stock Drop
Ultimately, GM agreed to become little more than a paid supplier of fuel cells for Nikola’s North America trucks. It also claimed the scalp of Milton, who stood down on Sept. 21 but remains its biggest single shareholder with a stake of about 22%.
As of Dec. 31, Nikola had about 450 employees and cash and restricted cash totaling $845.3 million, according to a regulatory filing.
(Updates with CEO comment in fourth paragraph.)
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