Nikola Corporation (NKLA) is having a busy week. First, the Phoenix, Arizona-based company announced its battery-electric and hydrogen fuel-cell trucks have achieved more than 2.5 million emissions-free miles. Equally important - particularly for investors and potential investors - effective June 25, Nikola's Nasdaq stock listing will begin trading on a split-adjusted setup in order to boost its plummeting price.
This reverse stock split is designed to consolidate 30 shares of Nikola into one, thus reducing the number of outstanding shares and boosting the share price. The intention is to prevent the company from Nasdaq delisting.
In late April, Nikola Chairman Steven Shindler proposed plans for a shareholder vote regarding a reverse stock-split in order to stop the hemorrhaging. Shareholders voted in favor of the measure on June 5.
"We must eliminate the distraction of delisting and position ourselves to raise capital more efficiently and effectively," Shindler said at the time.
The battery-electric and hydrogen fuel cell semi truck OEM’s stock price dropped by over 15% to 40 cents per share and its cash reserve decreased to $345.6 million beginning March 31, 2024. Three months prior it was at $464.7 million. First-quarter revenue did not meet Wall Street's expectations as a result of fewer hydrogen truck deliveries.
The company has a history of controversy following founder and former CEO Trevor Milton being sentenced to four years in federal prison after being convicted of fraud in order to influence potential investors.
Nikola's stock alterations will hopefully buy it time to work out production and other operational issues in order to meet delivery targets, of which no updates have been provided. But there are other signs Nikola is on the mend.
Milestones reached
Also Monday, Nikola confirmed that its battery-electric (BEV) and hydrogen fuel cell (FCEV) Class 8 semis had completed over 2.5 million emissions-free combined miles of driving across North America.
This consists of over 1 million miles driven by the OEM’s FCEVs and 1.5 million miles by its BEVs. The total mileage consisted of testing, validation, and real-world commercial driving. That is the equivalent of 3,927 metric tons of CO2 produced by Class 8 diesels driving the same distance. It is also comparable to removing annual tailpipe emissions of 935 passenger vehicles.
Clean Trucking spoke to Nikola CEO Steve Girsky at last month's ACT Expo where the company showcased its updated Tre BEV 2.0 semi. Girsky hinted that possible design changes to its cab over semi could be in the works. In addition, Ryan May, head of software & controls, provided us with a touchscreen user interface features demonstration.
[Related: Nikola's CEO and software chief provide exclusive walkthrough of improved BEV 2.0]
In May, Nikola's HYLA brand announced the opening of its second hydrogen refueling station near the Port of Long Beach in Southern California. By the end of the year, HYLA aims to have 14 modular refueling sites operational. Clean Trucking previously attended the opening of the first commercial hydrogen refueling station in the country, located at California's Port of Oakland.
