Nikola stock declined shortly after the company’s quarterly loss was reported. However, earnings do not really matter. Nicola does not generate any sales and the recent past for the company looks nothing like its immediate future. The company’s earnings were conference calls that investors needed to focus on.
Nicola (ticker: NKLA) stock, however, was not recovered immediately after the conference call, either — primarily due to company management was not it is said.
But Nicola management did not announce any customers for the battery-powered electric truck due 2021. (Nikola’s battery-powered heavy-duty truck will be released before the fuel cell-powered version.) He did not announce a manufacturing partner. For badger light pickup truck. He did not provide any badger reservation number. And the management did not announce any partnership for the construction of a hydrogen filling station.
There was not much for investors to dig into.
“Is that all we get,” JPMorgan analyst Paul Koster joked with management in a Q&A session following management’s prepared comments.
Nicola CEO Mark Russell said, “You have to trust us.” He says that much more is going on than what is contained in the news release. But, Russell likes to keep things confidential for now.
The call to Nicola bulls would be seen as being slightly late. Nikola stock declined nearly 4.7% after hours of trading. As of 5:30 pm Eastern time, the damage reached around 12%.
Deutsche Bank analyst Emmanuel Rosner asked about the cost of electricity for hydrogen production. Electricity is the major input of Nicola’s hydrogen production process. The management said something interesting in response to that query.
“We can make hydrogen for a decimal point move,” Russell said. He says: 3.5 percent per kilowatt-hour, or kilowatt, electricity cost can equal $ 3.50 per kilogram of hydrogen gas. $ 3 to $ 4 per kilogram of hydrogen will make Nikola fuel cell trucks competitive with diesel, barring any environmental benefits.
In the long run, the cost of hydrogen is a big deal for Nikola stock.
This is a good data point for investors to get away from. Now investors will have to decide whether less than 4 centiwatt kWh can be obtained.
Investors can expect analysts – all four of them – to weigh in on the results in Wednesday’s research reports. Which may increase the stock further. Analysts hold two share buy rate, two rate it. The average analyst price target is $ 56, where the shares are traded, but the price target will also change after the company’s first quarter report.
The date of the year, as of Tuesday’s closing price, is about 278% better than the comparable returns of the Nikola stock S&P 500 and the Dow Jones Industrial Average. But the stock has been volatile, and shares are down about 30% compared to the previous month.
Instability can be the name of the game as long as Nicola likes to keep her secrets to herself.
Write Al Root at [email protected]