Nikola’s (NKLA) CEO Mark Russell on Q3 2020 Results - Earnings Call Transcript
The bottom line is usually important, but in this case it doesn’t matter all that much. Nikola (ticker: NKLA) reported a loss of 31 cents a share on no sales, as the company has only been booking presales. Wall Street was looking for a loss of 20 cents on nil sales. The difference of 10 cents isn’t material to the company’s long-term prospects.
It’s been a wild ride for Nikola investors. And they can expect more stock volatility in coming days. The next big event that should move shares is a resolution to the GM partnership saga.
2 tykkäystä
Itse olen ajatellut tämän casen siten, että odottelen uutisia tuosta GM:n sopimuksesta. Mikäli sopimus syntyy, alkaa luotto taas palautua johtoon. Kuitenkin, jos sopimusta ei synny alkaa olemaan ajurit vähän kateissa ja pitää todenteolla harkita osakkeista luopumista. Olisi kyllä aika massiivinen takaisku mikäli GM:n kanssa ei päästäisi sopuun. Pidän kuitenkin varsin epätodennäköisenä, ettei sopimusta syntyisi. Niin kauan on nyt sitä sopimusta rakenneltu ja vielä GM:n johdon puolelta tullut viestiä, että kyseessä on heillekin loistava mahdollisuus.
Enkä näe tällä hetkellä järkeä myydä omistusta, sen verran hyviä mahdollisia ajureita loppuvuodelle vielä on, kun GM:n sopimus pitäisi saada maaliin ja infrasoppari myös.
1 tykkäys
Olen alkanut alkuperäisestä suunnitelmasta poiketen hieman harkita position myymistä siinä pelossa, että kurssi dippaa rajusti tuolloin 1.12. Voisi sitten ostaa osan positiosta takaisin alle 10$. Te, jotka holdaatte vielä tätä (jos en ole ainoa), onko teillä asian suhteen mitään pelisuunnitelmaa?
Muutama seikka, jotka osu silmään earnings callista.
Then Nikola – the Badger initiative entailed some $700 million, up to $700 million of investment in facility at GM. I mean some of us looking at it and saying, well, maybe it’s better not to proceed with that. Can you just kind of give us some sense of the nature of the spend with the GM deal plus Badger, plus the Badger versus a non-GM scenario. What kind of time line? And how long does the cash last before – how far do you get down your road map essentially in either scenario? And how quickly?
"As you know, and we have talked about this previously, with respect to GM transaction, it’s something that we are still in the works. And we feel confident that we’ll get greater clarity here in the next couple of weeks. But until then, then it’s going to be difficult in terms of sharing with you any additional vehicle. But you’re right to the extent that we move forward with the Badger, there is corresponding capital commitments. As we kind of think about that, ultimately, there are a number of perhaps considerations potentially that we could discuss with GM and potentially perhaps delay some of those commitments. But to the extent that we have to move forward then, of course, then we have to think about our capital expenditures closely. To give you some context, as we think about into 2022, 2021 and consider all of our priorities with respect to Nikola Tre BEV as well as Nikola Tre fuel cell for Europe as well as U.S., it is important that we prioritize our capital expenditures as well as operating expenditures. And right now, looking at our cash position, we feel pretty confident that we’ll be able to meet all of our operating commitments as well as CapEx with respect to our ongoing programs. Now in our estimation of the cash balance, we’re not including anything related to the Badger. However, we believe that based on existing cash that we have, that we should have adequate cash flow and still could end next year with $300 million or more cash on the balance sheet. Understanding that as we talked about last quarter, that at some point, we will consider going out to market and raising potential additional equity. And we always have suggested that we will do that likely a year in advance of when we actually need that cash. And so we – if we exclude cash need for CapEx related to the Badger, we think we will need out to market sometime, potentially middle of next year. But once again, this really depends on the market condition and when we think will be optimal time and when we can actually minimize any dilution in terms of our shares."
Can you just go over what milestones we can expect before year-end? I think in the past, you indicated a Tre order. You indicated a hydrogen partner. Just want to check, should we still expect those things before year-end? What has kind of been pushed out? And what kind of latest thinking there?
“We’re still targeting those dates. We would like to have an additional customer agreement announced by the end of the year, and we would like to have a collaboration on the station infrastructure hydrogen side announced by the end of the year. Those are still good targets for us, we think. Things got slowed down here just a little bit recently. We had some travel – that guy interrupted because of the increasing COVID restrictions in Europe. So we’ve had just a little bit of a slowdown in terms of being able to travel and things like that. But at this point, we’re still trying to get those deals done and ready for announcement by the end of the calendar year. If we didn’t get them done before New Year’s, I would anticipate they would not slip very far into the first of the year.”
Wedbush Securities analyst Dan Ives (Underperform, $15 price target): "With Nikola a pre-revenue company at this point, its all about the management team laying out the execution, timetable, and build out strategy for its EV/Hydrogen fuel cell roadmap. The prototypes trucks in Germany are on target to be completed by the end of the year with the Arizona flagship factory build-out also generally on schedule. We believe at this point its about regaining investor credibility one step at a time with last night another building block on that path, although clear challenges remain ahead for Nikola. Overall we still believe the company’s EV and hydrogen fuel cell ambitions are attainable in the semi-truck market, although we have serious concerns that the execution and timing of these ambitious goals stay on track over the coming years
- JPMorgan analyst Paul Coster (Overweight, $40 price target): “Nikola appears keen on proceeding with the GM deal, but we sense that focus is mainly on the Class 8 initiative. The firm might still proceed with the Badger pickup initiative, but the CFO stated that it could require a capital raise in 2021 (owing to the commitment of up to $700mm in capex), whereas a deal that excludes Badger would position Nikola to execute the original Truck-only plan and exit 2022 with ~$300 million of cash on hand. The best scenario seems to be successful negotiation of a GM deal, but of reduced scope to exclude the Badger initiative, we believe.”
SEC kyselyihin ei suoraa vastausta, edelleenkään
BRIAN SOZZI
…questions on some subpoenas inside of the 10-Q. Five officers received subpoenas from the SEC. Three more got them on September 21. Can you share with us what the SEC is exactly looking for here?
MARK RUSSELL: Well, you know, no company would comment on ongoing SEC matters. So we’re cooperating with them and doing everything we can to help them in their work. So we don’t comment on an ongoing SEC matter.
Surkuhupaisaa sinänsä että toimittajat kyselee rekkojen perään että toimiiko/liikkuuko ne
Before we came on we were talking about that new semi truck. You put a picture of it in the earnings release. Take us through that. So it is up and running? I know there were some concerns coming off the Hindenburg report on what you actually have in terms of trucks that move. So you’re saying, this runs. And when might that be available to customers?
MARK RUSSELL: So we have a number of trucks that run. We have a couple of hydrogen fuel cell prototypes that have been running for more than a year on test tracks and on and test runs. We actually haul beer for Anheuser-Busch on public roads with that truck with one of those prototypes. This will be the first prototype, however-- the one that’s on the track in Germany-- that’s the first prototype of the Nikola Tre, which is our new battery electric vehicle that will go into production next year. So we’ve got five prototypes coming into completion right now. And they will go on the track for testing and then later road testing. And then we’ll have another batch of prototypes, and that truck goes into production next year.
Aika näytää…
We’re focused on the milestones that we have laid out there. Getting this trailer on the road. Getting it in customer hands next year. Following that up with the fuel cell truck in 2023 and the stations to fuel the fuel cell trucks by 2023, 2022. So we believe as we execute on those milestones that we’re going to reward our shareholders, and particularly our long term shareholders, which we’re very grateful for.
4 tykkäystä
Etenee
12 tykkäystä
No kova on kurssireaktio yhteen kuvaan 
Ulkoisesti tuo näyttää melko peruskamalle ja ei äkkiseltään edes erota sähkövermeeksi
3 tykkäystä
Energiaketjun puolelta tuli vastaan:
Tuskin tämän kaltaisistakaan uutisista haittaa on kurssi kehitykselle
3 tykkäystä
5 tykkäystä
Investors in Nikola Corporation (NKLA Quick QuoteNKLA - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Dec 4, 2020 $10.00 Put had some of the highest implied volatility of all equity options today.
Liittynee lockuppien päättymiseen
1 tykkäys
Vois melkein hyppää takasin rekan kyytiin tuon päivämäärän jälkeen 
1 tykkäys
The past few months have shown this company is far from becoming the next Tesla. But, while that means there isn’t much of a bull case right now, going short may not be best call, either.
Why? Just a morsel of positive news could be enough to cause a short-squeeze, which would send shares temporarily higher. In short, with going long (or short) not worth the risk, it’s best to sit out on this EV play for now. Its material issues remain unresolved.
3 tykkäystä
General Motors is slated to give investors a deeper look into its EV plans at the Barclays 2020 World Automotive Conference on Thursday, Nov. 19, the CEO said.
While Barra hinted toward EV news on the horizon, the CEO declined to comment on the company’s partnership with Nikola. “Conversations continue and as soon as we have an update, we will share it,” Barra said when asked about Nikola.
7 tykkäystä
- Sentiment: BULLISH
- Option Type: TRADE
- Trade Type: CALL
- Expiration Date: 2020-11-20
- Strike Price: $22.00
- Volume: 715
- Open Interest: 2952
3 tykkäystä
Ai täällä on semmoinenkin nappi mistä saa koko viestin häviämään… Mutta olikohan sittenkin uutisankka tämä
https://twitter.com/DeItaone/status/1329078974819889158?s=19
Ilmeisesti GM nettisivuilta joku tehnyt päätelmiä:
Tuolla sivuilla näkyy aikajanalla uutinen “We signed an agreement with Nikola to engineer and manufacture the Nikola Badger using our Ultium battery system, and to be the exclusive supplier of Hydrotec fuel cells globally for Nikola’s Class 7/8 semi-trucks, except in Europe.”
Ei ole siis mitään uutta, toi on syyskuulta. Toisaalta outoa, että vieläkin sivuilla. Huomennahan on tuo GM:n esitys tuolla Barclays 2020 World Automotive Conferencessa ja sieltä voi tihkua tietoa sitten sopparista Nikolan kanssa. Markkina ottanut ainakin etukenoa jonkin verran.
1 tykkäys
Nikola goes on wild ride on report of GM-NKLA finalized deal