U.S. electric truck maker Nikola slashes revenue forecast

U.S. electric truck maker Nikola slashes revenue forecast

U.S. Nikola's logo is pictured at an event held in Turin to present CNH's new full-electric and hydrogen fuel cell battery trucks in partnership with U.S. Nikola event in Turin, photo by Julia Jensen.

- Nikola Corp slashed its annual deliveries estimate and halved its revenue forecast as supply chain issues drove delays in receiving certain parts, dragging the electric truck maker’s shares down 7.6%.

The supply constraints could affect the validation, testing and delivery timeline of its vehicles, Nikola said. Now it expects revenue of up to $7.5 million for the year versus an earlier estimate of $15 million to $30 million.

A longer global chip shortage had caught major automakers including Ford Motor, Honda Motor, General Motors and Volkswagen off guard, forcing many to idle or delay production.

The earnings report comes days after Founder Trevor Milton was criminally charged with defrauding investors by lying to them about the electric - and hydrogen-powered truck manufacturer's products and technology.

Milton's indictment is a potential distraction, the company said on Tuesday.

Nikola expects full-year deliveries between 25 and 50, down from 50 to 100 vehicles earlier.

The delivery outlook represents trucks in customers' hands for freight delivery on public roads and may not represent sellable vehicles, said the company.

Excluding items, Refinitiv posted a loss of 20 cents per share, narrower than the expectations of analysts for a loss of 29 cents per share, according to IBES data.