Autos & Transportation

Nikola slashes annual outlook on supply chain issues, shares drop

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U.S. Nikola's logo is pictured at an event held to present CNH's new full-electric and Hydrogen fuel-cell battery trucks in partnership with U.S. Nikola event in Turin, Italy, December 3, 2019. REUTERS/Massimo Pinca

Aug 3 (Reuters) - Nikola Corp (NKLA.O) on Tuesday halved its annual deliveries estimate and slashed 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. It now expects revenue of up to $7.5 million for the year versus an earlier estimate of $15 million to $30 million.

A prolonged global chip shortage had caught major automakers including Ford Motor (F.N), Honda Motor (7267.T), General Motors (GM.N) and Volkswagen (VOWG_p.DE) off guard, forcing many to idle or delay production.

Nikola's 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 maker's products and technology. read more

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

Nikola now 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 saleable vehicles," the company said.

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

Reporting by Chavi Mehta and Akanksha Rana in Bengaluru; Editing by Devika Syamnath

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