(Reuters) -Nikola Corp missed fourth-quarter revenue targets by a wide margin on Thursday as it delivered far fewer electric trucks than it produced, dragging the company’s shares 7% lower in early trading.
The automaker produced 133 trucks and delivered just 20 vehicles to dealerships in the fourth quarter as companies dialed back spending to better cope with rising costs and a looming recession.
In a spot of optimism, however, Nikola outlined plans to boost deliveries and reduce costs in 2023.
It expects to deliver between 250 and 350 Tre battery electric trucks this year, compared with 131 deliveries in 2022, and forecast at least 125 fuel-cell electric truck deliveries in the fourth quarter.
The company also plans to start installation of an automated battery pack assembly line, which it expects will deliver about $105,000 in cost savings in battery modules and packs for each Tre BEV truck by the fourth quarter of the year.
Loss-making U.S. startups such as Nikola and Lordstown Motors Corp have been battling costs associated with ramping up production as they seek to grab a share in the commercial vehicles market.
In its third-quarter results, Nikola had said it would miss its goal of delivering at least 300 semi-trucks in 2022 and declined to issue fresh forecasts. Its stock has slumped about 66% over the past 12 months.
Revenue of $6.6 million for the fourth quarter ended Dec. 31 came in below analysts’ estimates of $32.1 million, according to IBES data from Refinitiv.
Net loss widened to $222.1 million from $158.9 million a year earlier.
(Reporting by Akash Sriram in Bengaluru; Editing by Devika Syamnath)
