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Nikola more profitable ?: Nikola may need new capital – but not as much as Tesla | message

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• Nikola-Chef thinks companies are currently well capitalized
• However, capital increase in the future is likely
• Does Nikola need less money than Tesla?

The auto construction business is expensive. Especially when a company is still operating without its own production facilities and production lines. Nikola is also active in an industry of the future: the US company wants to develop hydrogen-powered trucks and bring them to market – and thus be in direct competition with US rival Tesla, which in turn relies on electric battery drives.

Last Nikola capital increase not long ago

For this reason, the company around founder Trevor Milton announced a capital increase a few weeks ago and increased its capital by selling 23.9 million additional shares. Investors did not take note of this step with goodwill, after all, this leads to a dilution of their own shares. Numerous investors pulled the ripcord as a result of the news that those who had entered the stock market at 37.55 US dollars are still in the black, but the Nikola share is now a long way from the highs shortly after the stock market launch.

Nikola still needs more money

And that the increase in the shares will not have been the last capital measure should not only be clear to Nikola investors in view of the increasing capital requirements.

Founder and CEO Milton has recently made no secret of the fact that his company will have to raise fresh capital sooner or later. However, this will not be needed in the same amount as with the US rival Tesla: “I think Tesla has collected between 10 and 20 billion US dollars to get to where they are now,” Nikola will also have to look for capital. “But we have a better business model,” continued Milton. The Nikola model is based “on profitability, not necessarily on speculation,” stressed the manager.

He does not assume that you have to raise capital in the same amount as Tesla, since the business model of his group is “very, very profitable”. “With every truck we sell, we make almost a quarter of a million dollars. That is a huge amount of money. So we are a completely different company from Tesla,” he summed up what he believed to be the different approaches of car manufacturers.

He currently sees his company in a good financial position. “Right now we have over $ 900 million in cash in our bank account. So we’re very financially solid. I know a billion dollars doesn’t sound like a lot of money in today’s world, but it’s a lot of money. It’s a billion dollars on our account. We’re going to go into the market at some point to get more capital. There’ll be one or two more [Runden] required, “continued Milton.

First major order for Nikola

The company recently landed a major contract in the USA: Nikola is to deliver 2,500 hydrogen-powered garbage trucks for the US garbage disposal company Republic Services. Financial details of the deal were not known, and whether the client will make a down payment has recently remained open.

The ramp-up of production is likely to entail enormous costs. The foundation stone for the Nikola factory in Arizona was recently laid, and construction costs are estimated to be 600 million US dollars. Nikola has not yet made any significant sales, the net loss was increased in the second fiscal quarter from 16.7 to 86.64 million US dollars.

Finanzen.net editors

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Image Sources: Nikola, Josh Edelson / AFP / Getty Images



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