Nikola Corp. (NASDAQ: NKLA), the wreck of an alternative energy truck company, tore apart investor expectations again. The cause was simple. Management forecast the financial results would be less than expected, and expectations already have been disappointing.<\/p>\n
Nikola never had much of a business model. It produces battery-powered and hydrogen-powered trucks. It delivered 63 of its 75 Nikola Tre BEVs trucks to dealers in the third quarter. And Nikola managed to lose $236 million. It is eating through cash at an alarming rate.<\/p>\n
\u201cDuring the third quarter we continued to produce and deliver Nikola Tre BEVs to dealers and customers,\u201d Nikola President Michael Lohscheller commented. Sixty-three vehicles is not much of a delivery record.<\/p>\n
Nikola originally said it would build 300 to 500 trucks by the end of this year. It chopped that forecast to a range of 255 to 305. It is a sign management does not understand its own business and cannot be relied upon to offer realistic assessments of its operations. Management also declined to offer a production forecast for next year. That means Nikola executives have little idea what its financial performance will be.<\/p>\n \t\t\t\t