Tesla competitor is in the red – and is still successful

Image source: Nikola Motor Company

Hardly any automaker is going through the roof like Tesla. The electric car manufacturer behind Elon Musk has finally managed to stay in the black for the past four quarters. It looks completely different with a rival – here there are losses. Still, the company is incredibly successful. How can that be?


Nikola: Tesla competitor is making heavy losses

Anyone looking for promising Tesla competitors will soon end up at a company called Nikola. The electric car and hydrogen truck maker went public in June and got off to a phenomenal start. In a matter of days, the company’s share price soared from $ 37.55 to $ 93.99 per share. As reported by t3n, Nikola was even able to temporarily overtake the traditional manufacturer Ford in this way. The special thing about it: Nikola does not even have a finished product in its portfolio and also has no significant sales, as the latest quarterly report shows.

The company’s only revenue for the past few months is $ 36,000. Peanuts if you compare that with the values ​​of competitors like Ford. In 2019, sales of almost 156 billion US dollars were achieved here. Interesting Fun Fact: The $ 36,000 in sales brought a single project into the company’s coffers: the installation of some solar systems for Trevor Milton, the founder of the Nikola Motor Company.

Are e-cars really that expensive? And what about the number of charging stations? GIGA explains:

Lots of money despite high losses: Nikola lives from his investors

Nevertheless, numerous investors are investing in the start-up, which is admittedly not unusual. According to current information, the company is said to have almost $ 700 million on the high edge after the IPO. Even when it went public, the company was playing with open cards and announced that sales should not be expected until 2021. In 2024, however, sales of a whopping 3.2 billion US dollars are expected.

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And after all, the company has now landed a real contract. The American refuse collection company Republic Services has ordered 2,500 electric garbage trucks from Nikola. Production of the first models is scheduled to start in early 2021, with delivery a year later. An advance payment from Republic Services has not been processed, so the investors will continue to draw on the money until the contract is fulfilled.

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