KEY POINTS

  • Last year, Nikola began selling battery-powered vehicles and expected to start commercial production of hydrogen fuel cell trucks in 2023.

Nikola (NASDAQ:NKLA) has had a difficult existence, but finally, can Nikola stock drive higher? The firm, which makes electric semi-trucks, has been troubled since its previous founder and chairman was compelled to step down and subsequently indicted for investor fraud. On the other hand, Trevor Milton has been absent from the firm for more than a year-and-a-half now, and Nikola is working to repair its reputation with investors.

Fraudster founder

After Milton made claims about the firm and its technology that were not true at the time, investors lost faith and optimism in it. However, Nikola continued to strive toward its objectives under new management, and today’s first-quarter report reveals its results. The outcomes have received a thumbs up from investors as well.

Although management, and the stock, still have a long way to go. Since Milton’s exit in September 2020, Nikola shares have tumbled 72%. On the other hand, Thursday’s news could be a catalyst for the stock’s recovery.

Promising guidance

Even in the face of industry-wide constraints that are harming many manufacturers, Nikola maintained its goal. That goal was to produce 300 to 500 battery electric vehicles (BEVs) and deliver them in 2022. That would represent a considerable income of $90 million to $150 million.

FCEV testing

Customers are also test-driving the firm’s first hydrogen fuel cell electric vehicle (FCEV), a critical aspect of its strategy. By the end of the third quarter of 2022, they aim to have a batch of six rolling and ready for further beta testing. Nikola anticipates beginning commercial production in the second half of 2023 after validating the beta fleet.

In the meantime, Nikola is also collaborating with other businesses to create hydrogen infrastructure, including dispensing stations and production centers. If the FCEV’s progress continues at this rate and new vehicle buyers keep ordering new cars, now may be just the beginning of seeing Nikola stock drive higher.

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