Nikola (NKLA) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenue of $31.3 million, up 318% from Q1 and 104% year-over-year, driven by strong hydrogen FCEV sales, improved average sales price, and regulatory credit revenue.

• Delivered 72 hydrogen FCEVs in Q2, surpassing guidance and marking the third consecutive quarter of meeting or beating volume guidance; Walmart Canada became the first major retailer to deploy a Class 8 FCEV.

• Expanded partnerships with major national accounts, including repeat orders and strategic collaborations with OEMs, hydrogen producers, and energy companies.

• Continued build-out of the HYLA hydrogen fueling network, opening new stations in Toronto and Santa Fe Springs, and doubling capacity at Ontario, CA.

• Monetized initial regulatory credits (NOx and PM), with alternative revenue streams expected to grow as volumes and regulations expand.

Financial highlights

• Q2 2024 revenue reached $31.3 million, a 318% increase from Q1 and 104% year-over-year, with average sales price rising to $388,000 per unit.

• Reported a Q2 2024 net loss from continuing operations of $133.7 million and a gross loss of $54.7 million, with adjusted EBITDA at $(109.4) million.

• Ended Q2 with $256.3 million in unrestricted cash, after a decline of $89.3 million during the quarter.

• ATM and equity proceeds contributed over $50 million to cash balances in Q2 2024.

• Adjusted free cash flow for Q2 2024 was $(148.3) million, flat year-over-year.

Outlook and guidance

• FY 2024 guidance for fuel cell truck wholesale deliveries remains at 300-350 units, with Q3 expected at 80-100 deliveries.

• HYLA fueling network on track to provide 14 fueling solutions in North America by year-end.

• BEV recall program expected to be completed by year-end 2024.

• Existing financial resources are only adequate to fund operations into, but not beyond, Q4 2024 without additional capital.

• Focused on scaling operations, optimizing costs, and achieving profitability as volume grows.