Shares of Nikola Corp. experienced a significant boost in value on Thursday, surpassing the $1 mark. This upward trend was set in motion by a fireside chat conducted by the company's newly appointed Chief Executive, Steve Girsky. Girsky took this opportunity to address key concerns raised by investors.
Nikola Corp., a prominent electric vehicle manufacturer, observed a 28.8% surge in its stock (NKLA, +33.97%) during afternoon trading. This surge allowed the stock to rebound from a three-month low and put an end to a four-day period of trading below $1.
The trading volume also saw a substantial spike, with 179.6 million shares being traded compared to the daily average of approximately 71.9 million shares. As a result, Nikola Corp.'s stock emerged as the third-most actively traded on the Nasdaq exchange.
Among the top concerns identified by investors was the recall announced a month ago regarding over 200 battery-electric trucks due to coolant leaks within the pack. This issue was considered to be the cause of a truck fire that occurred in June.
Girsky, who assumed the role of CEO on August 4 following the departure of former CEO Michael Lohscheller due to a family health matter, assured stakeholders that Nikola Corp.'s team was diligently working to acquire the necessary components from suppliers. He emphasized that all repairs and fixes would undergo meticulous validation testing before being implemented. Girsky also pledged to promptly communicate timelines and costs to the stakeholders. Above all, he emphasized that ensuring customer safety and satisfaction remained the company's primary objective.
Nikola Corp.'s impressive performance following the fireside chat demonstrates investor confidence in the company's ability to address and resolve issues effectively.
Nikola's Production and Delivery Update
Nikola's Executive Chairman, Steve Girsky, recently addressed concerns regarding the production and delivery of their trucks. While the deliveries of their battery-electric trucks have been temporarily paused due to a recall, Girsky emphasized that this issue does not affect the production or delivery timeline for their hydrogen fuel cell trucks. These fuel cell electric vehicles utilize a different battery pack from a separate supplier.
Girsky confirmed that the production of the fuel cell trucks commenced on July 31. The first deliveries to dealers are scheduled for late-September and early October, with a launch celebration planned for September 28. Girsky believes that these deliveries will provide Nikola with "at least a two-year head start" over its competitors in the market.
Despite recent challenges, Nikola's stock has seen a 3.7% growth over the past three months. However, it has declined by 48.2% year-to-date. In comparison, the Global X Autonomous & Electric Vehicles ETF DRIV has experienced a 24.2% rally this year, while the S&P 500 index SPX has climbed by 17.3%.