Nikola
Nikola's Q2 report was a let down for the company's enthusiastic investors, with the firm reporting revenue totaling $0.03 million, $36,000, for the quarter. The entirety of the total was attributed to the installation of solar panels at CEO Trevor Milton's house.
"During the three months ended June 30, 2020 and 2019 the Company recorded solar revenues of $0.03 million and $0.04 million, respectively, for the provision of solar installation services to the Executive Chairman, which are billed on time and materials basis," the company said in its SEC filing. "During the six months ended June 30, 2020 and 2019 the company recorded solar revenues of $0.08 million and $0.06 million, respectively, for the provision of solar installation services to the Executive Chairman. As of June 30, 2020 and December 31, 2019, the company had $3 thousand and $51 thousand, respectively, outstanding in accounts receivable related to solar installation services. The outstanding balance was paid subsequent to period end."
Nikola's share price declined on news of the quarterly report. Shares plummeted during aftermarket trading on Tuesday, losing 16% of their value overnight, dropping from $38.84 to $32.74. Stocks rebounded on Wednesday somewhat but fluctuated throughout the day. As of the time of writing, Nikola has yet to regain its $38 share price.
Not helping the company's share price is the lack of any new announcements for the company, which left investors solely with the company's eyebrow-raising quarterly report and nothing to stymie any concerns they might have. Emmanuel Rosner of Deutsche Bank
Despite the cold reception at Q2, analysts are still relatively upbeat on Nikola's prospects, with the company itself stating that it is still on track to meet its goals. Many analysts are calling on investors to be patient with the company and wait for the right opportunity to come along for Nikola. Analysts at JP Morgan
- https://www.cnbc.com/2020/08/05/nikolas-entire-quarterly-revenue-of-36000-was-from-solar-installation-for-the-executive-chairman.html
- https://www.marketwatch.com/story/for-nikola-stock-no-news-was-not-good-news-2020-08-05
- https://markets.businessinsider.com/news/stocks/nikola-stock-price-q2-earnings-miss-loss-estimates-analyst-call-2020-8-1029473836