Editor’s note: A previous version of this story erroneously mentioned that Nikola focuses solely on EVs in the eighth paragraph. The company manufactures both battery-electric vehicles as well as trucks powered by hydrogen fuel cells.
In a market dominated by behemoths like Tesla, Rivian, and Lucid, the underdog EV truck maker Nikola Corp NKLA has emerged as a surprising frontrunner. With a 14.46% year-to-date gain, Nikola’s stock is defying the downward trend faced by many in the EV sector.
Not An Easy Climb Back Up: Despite its recent success, Nikola has had to navigate a tumultuous path. Plagued by setbacks in 2023, including fire incidents with its battery-electric trucks and executive changes, the company’s share value plummeted from over $2 to below $1.
Having commenced with battery-electric trucks before transitioning to hydrogen fuel cell trucks, Nikola faced a major setback with the recall of its electric vehicles following safety concerns raised by multiple fire incidents.
Sales of new BEV trucks are currently on hold as Nikola focuses on rectifying the issues with the recalled vehicles.
Management Shuffles: The company also underwent significant leadership changes, including CEO Michael Lohscheller being replaced by Steve Girsky and CFO Anastasiya Pasterick resigning after a brief tenure. The recent appointment of former General Motors executive Thomas Okray as CFO reflects Nikola’s drive to revamp its team.
Despite producing fewer trucks in 2023 compared to the previous year, Nikola reported increased revenues and gross losses for the year. However, the company’s stock trajectory in 2024 signals a potential turnaround, driven by hydrogen truck sales and the anticipated reintegration of its fixed BEV trucks.
With CEO Girsky projecting a restart of BEV truck deliveries in late Q3 or early Q4 of 2024, and the resolution of all vehicle recalls by Q2 or early Q3, Nikola is positioning itself for a resurgence in the market.
Traditional Automakers vs. EV Startups
While established automakers like General Motors and Ford produce a mix of EVs and gas-powered vehicles, Nikola stands alongside U.S. companies like Tesla Inc TSLA, Rivian Automotive Inc. RIVN, and Lucid Group Inc. LCID in the production of both battery-electric vehicles (BEVs) and hydrogen fuel cell trucks.
While competitors like Tesla, Rivian, and Lucid have experienced significant stock declines this year amid concerns of a potential EV demand slowdown, Nikola has stood out with its positive trajectory in the market.
Despite challenges with scaling production profitably faced by Rivian and Lucid, Nikola’s unique position as a manufacturer of hydrogen fuel cell trucks sets it apart in the competitive EV landscape.
With General Motors and Ford also experiencing stock price increases, Nikola’s promising performance in 2024 signals a potential shift in the dynamics of the EV industry.
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