Nikola shares tumble 7.0% despite smaller than expected quarterly loss

Nikola (NKLA.US) stock fell more than 7.0% despite the fact that the electric and hydrogen truck startup posted lower than expected quarterly loss. Company's quarterly loss increased to 20 cents from 14 cents in the first quarter, but was narrower compared to analysts' expectations of 30-cent loss per share. Nikola did not record any revenue, after recording $36,000 in solar revenue last year. “We have had continued success in commissioning and validating the Nikola Tre BEVs, completed both our Ulm, Germany and Phase 0.5 of our Coolidge, Arizona manufacturing facilities," said Nikola's CEO Mark Russell in a statement. He also mentioned the acquisition of a 20% stake in the Wabash Valley Resources clean hydrogen project in Indiana. However, the investors' sentiment was negatively affected by information on the anticipated deliveries of vehicles. Nikola expects to deliver only 25-50 vehicles in the second part of the year,  compared to previous expectations of 50-100 and put revenue guidance at $0-$7.5 million, down from $15 million-$30 million. Management said that this is related to supply-chain issues, which could delay validation, testing and delivery timelines for the Tre trucks, saying "one of biggest challenges is supply chain. Situation more acute last 90 days."

Nikola (NKLA.US) stock has been trading in a downward trend for a long time. Today price is approaching major support at $9.60 where the previous price reactions can be found. In case buyers fail to stop the falls there as well, a move towards the lower limit of the descending channel may be on the cards. The nearest resistance can be found at $15.10 and coincides with 50 SMA (green line) and upper limit of the descending channel. Source: xStation5