image credit: Raquel Baranow / Wikimedia

Nikola Falls After Paring Output Goals for Debut Electric Trucks

February 26, 2021

Nikola Corp. shares slipped after the company cut projected output of its first commercial zero-emission vehicles and said it may seek to raise more capital to invest in facilities such as a planned hydrogen-fueling network.

The startup now expects to deliver 100 battery-electric Tre semis to customers this year, down from a previous target of 600. It blamed the global pandemic and supply chain issues for the drop in planned production volumes.

“We see pent-up demand hitting the supply chain, creating global critical parts shortages for components” such as display screens and batteries, CEO Mark Russell said on a call with analysts late Feb. 25 after Nikola released its latest earnings. “In light of all of these uncertainties, we believe it would be prudent to revise expectations for Nikola Tre BEV deliveries.”

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