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Posted By John W. B. Rich Posted On Comment (2)

Nikola Earnings Call Recap for Q3 2020

Nikola presented its Q3 results Monday afternoon during its earnings call. The company highlighted its progress in building five prototypes of its semi-truck, breaking ground on its Coolidge, Arizona plant, and progress on the company’s long-term goals.

The executive team gave very little information about revenue or its net loss for Q3. The press release focused on its progress in reaching milestones, such as building prototypes and constructing a factory in Coolidge, Arizona.

Nikola earnings call 2020 Q3

Nikola also highlighted its numerous partners: Bosch for fuel cells, IVECO for manufacturing in Germany, Romeo for batteries, and GM for fuel cells and distribution. The question did not come up, but it makes one wonder what Nikola’s core competency actually is.

Cash

Nikola’s cash position is looking healthy. Cash increased approximately $210 million over the last quarter, to $908 million, mostly from raising capital.

Analyst Questions

Nikola received only friendly analyst questions. None asked about a potential SEC or FBI investigation, even though the company alluded to one. CEO Mark Russell noted that Nikola approached the SEC and FBI after allegations of fraud from Hindenburg Research came out. It is unclear if Nikola is currently the subject of an investigation.

While one analyst asked about manufacturing timelines and cash burn (the company should have enough cash to last through 2022, according to CFO Kim Brady), most analysts let the executives chat about their lofty long-term vision for the company.

Overall, there was very little concrete information given on demand or production timelines. Russell said that “demand is very high”, but only discussed the general increasing demand for electric vehicles worldwide, and not any specific numbers for Nikola reservations.

On the previous earnings call, Nikola had declined to specify how many of their Badger reservations were paid reservations.

One off-topic note is that an analyst by the name of Joseph Spak asked a question during the call. It’s a fitting name for an analyst covering one of the most famous SPACs of the year.

Read John’s live Twitter thread of the Nikola call here.

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