In response to weak demand for its battery-powered vehicles, Nikola Corp. on Tuesday disclosed a larger quarterly loss and announced it will halt production to streamline the assembly line at its Coolidge, Arizona factory.
Investors have concentrated on the cash on hand at Nikola and other EV manufacturers because they are concerned that slower sales may force them to explore additional share sales to obtain money.
The first commercially available hydrogen fuel cell trucks will be produced when manufacturing resumes in July, according to Nikola. “At the end of May, we plan to pause truck production as we convert the line to accommodate both hydrogen fuel cell and battery electric trucks on the same line,” he added.
Fisker Inc. posted a reduced first-quarter loss earlier in the day and lowered its full-year production target as the electric vehicle startup attempts to control costs.
Nikola’s net loss increased from $152.94 million to $169.09 million in the quarter from a year earlier.