Nikola Corp. (NASDAQ: NKLA) recently announced that it would pause production of its Tre BEV Electric vehicle after posting a large loss for the first quarter of 2023. The company produced 63 units of the Tre BEV during the quarter and delivered 31 of them to dealers, but demand has since slowed and inventory has swelled. As a result, production has been stopped in order to make improvements to the production line at its Arizona facility.
The project will begin at the end of May and is intended to allow for both hydrogen fuel cell and battery Electric vehicles to be built on the same line. The Tre BEV will remain available as a build-to-order product once production resumes.
Nikola did note that it saw a “significant increase” in sales in Q1 compared to last year and has locked up several large orders for its hydrogen fuel cell vehicles. The company has orders from 12 companies that make up 140 total units of the FCEV Tre.
Despite the sales increase, Nikola posted a net loss of $169.09 million in Q1, which was larger than the $152.94 million loss it posted in the same quarter last year. The company’s stock was down 7.5 percent at 10:17 AM on the East Coast following the announcement.
It is clear that Nikola has some work ahead of it in order to turn its fortunes around. The company is focusing on the North American market, hydrogen fuel cell trucks, the HYLA hydrogen refueling business, and autonomous technologies. Whether this will be enough to offset the losses and help the company get back on track remains to be seen.