Nikola's dismal demand — it delivered a fraction of the trucks it made — slams stock price

Nikola Corp said issues hitting demand are not expected to ease in the near future after it delivered fewer than a sixth of the battery-powered trucks it made in the fourth quarter, sending its shares down as much as 9% on Thursday.

The Phoenix, Arizona based EV startup, which has ambitions to bring to market the first hydrogen-powered heavy-duty trucks later this year, saw its cash reserves dwindle in the quarter and also forecast 2023 gross margins deep in the red.

Nikola executives painted a dire picture on call with investors, noting the slower-than-expected uptake of battery-electric semi-trucks due to issues including a lack of a charging network.

"We don't believe these challenges will be abated anytime soon," Kim Brady, Nikola's finance chief said.

For the fourth quarter, it missed revenue targets by a wide margin and reported swelling losses.

Nikola, like other smaller EV firms, is faced with high production costs and supply bottlenecks in a time when demand has stalled amid rising inflation.