Nikola Corporation’s Q4 Earnings End on a Sombre Note

Photo of author
Written By Faith Boluwatife

Nikola Corporation (NKLA) concluded 2023 on a rather sombre note, as evidenced by its Q4 earnings report.

The company not only missed its revenue consensus estimates but also reported a significant year-over-year decline in hydrogen fuel cell electric truck deliveries. With 35 trucks delivered in Q4 and a total of 138 for the entire year, Nikola’s production fell significantly short of its previous year’s performance.

Financial Struggles and Operational Challenges

Nikola’s journey toward profitability appears more challenging than ever, with a reported -331% gross margin in Q4 2023 and an operating cash flow deficit of $118 million.

Credits: DepositPhotos

Despite what might seem like a decent financial position at first glance, the stark reality of its operating cash flow plunges the company’s financial stability into doubt, suggesting potential cash shortages in the near future.

Read More: Ballard Power’s Stock Soars Following Strategic European Deal and US Tax Credit Windfall

A Looming Concern

With an already doubled share count in 2023, Nikola faces the looming prospect of further dilution to raise necessary funds, a move likely to exert downward pressure on its stock price throughout 2024.

This situation is exacerbated by a sluggish ramp-up in production and sales, casting shadows over Nikola’s growth prospects, especially when juxtaposed against the significant sales increases of competitors like Volvo and Daimler Truck.

Competitive Landscape and Market Position

2024 presents a challenging landscape for Nikola, not least because of its slow production growth and the intensifying competition, notably from Tesla’s Gigafactory expansion.

These factors combine to put Nikola at a significant disadvantage, struggling to keep pace with industry growth rates and facing increasing market pressures.

Also Read: Chemours Remains Resilient in The Face of Challenges

Nikola’s Valuation and Market Sentiment

Current valuation metrics paint a bleak picture for Nikola, trading at a fraction of its all-time highs with weak momentum indicators. The company’s high valuation ratios, in light of ambitious revenue growth projections, further compound the scepticism around its financial viability and growth trajectory.

A More Conservative Outlook

Adopting a conservative stance, this analysis recalibrates Nikola’s revenue growth expectations in line with broader industry trends, projecting a more modest expansion reflective of the challenges and uncertainties ahead. A detailed discounted cash flow valuation underscores these concerns, suggesting a valuation significantly lower than the current market cap and casting doubts on Nikola’s attractiveness as an investment.

Risks and Counterpoints

While the analysis leans bearish, it’s crucial to acknowledge potential risks to this thesis, including the high short interest in NKLA shares, which could trigger a short squeeze.

Moreover, the zero-emission truck industry’s growth potential could offer a lifeline to Nikola, especially if new management or strategic acquisitions pivot the company towards a more promising direction.

A Cautious Perspective on Nikola

In summary, Nikola Corporation’s Q4 earnings and operational updates highlight a company at a crossroads, facing significant financial and competitive challenges. While the long-term potential of the zero-emission truck market remains, Nikola’s path to capturing this opportunity is fraught with obstacles.

Credits: DepositPhotos

For investors focused on fundamentals, Nikola presents a “Strong Sell” proposition, though those willing to navigate the volatility of a potential short squeeze may find a speculative angle.

However, the fundamental analysis suggests caution, emphasizing the need for a clear turnaround strategy before considering Nikola as a viable investment.

Read Next: Is P10 a Hidden Gem Yet to Be Uncovered?


You should read and understand this disclaimer in its entirety before joining or viewing the website or email/blog list of (the “Publisher”). The information (collectively the “Advertisement”) disseminated by email, text or other method by the Publisher including this publication is a paid commercial advertisement and should not be relied upon for making an investment decision or any other purpose. The Publisher is engaged in the business of marketing and advertising the securities of publicly traded companies in exchange for compensation. The track record, gains, upside, and/or losses mentioned in the Advertisement, if any, should not be considered as true or accurate or be the basis for an investment. The Publisher does not verify the accuracy or completeness of any information included in the Advertisement. While the Publisher does not charge for the SMS service, standard carrier message and data rates may apply. To unsubscribe from receiving promotional text messages to your phone sent via an autodialer, using your phone reply to the sender’s phone number with the word STOP or HELP for help.

The Advertisement is not a solicitation or recommendation to buy securities of the advertised company. An offer to buy or sell securities can be made only by a disclosure document that complies with applicable securities laws and only in the states or other jurisdictions in which the security is eligible for sale. The Advertisement is not a disclosure document. The Advertisement is only a favorable snapshot of unverified information about the advertised company. An investor considering purchasing the securities, should always do so only with the assistance of his legal, tax and investment advisors. Investors should review with his or her investment advisor, tax advisor or attorney, if and to the extent available, any information concerning a potential investment at the web sites of the U.S. Securities and Exchange Commission (the "SEC") at; the Financial Industry Regulatory Authority (the "FINRA") at, and relevant State Securities Administrator website and the OTC Markets website at The Publisher cautions investors to read the SEC advisory to investors concerning Internet Stock Fraud at, as well as related information published by the FINRA on how to invest carefully. Investors are responsible for verifying all information in the Advertisement. As an advertiser, we do not verify any information we publish. The Advertisement should not be considered true or complete.

The Publisher does not offer investment advice or analysis, and the Publisher further urges you to consult your own independent tax, business, financial and investment advisors concerning any investment you make in securities particularly those quoted on the OTC Markets. Investing in securities is highly speculative and carries an extremely high degree of risk. You could lose your entire investment if you invest in any company mentioned in the Advertisement. You acknowledge that we are not an investment advisory service, a broker-dealer or an investment adviser and we are not qualified to act as such. You acknowledge that you will consult with your own independent, tax, financial and/or legal advisers regarding any decisions as to any company mentioned here. We have not determined if the Advertisement is accurate, correct or truthful. The Advertisement is compiled from publicly available information, which include, but are not limited to, no cost online research, magazines, newspapers, reports filed with the SEC or information furnished by way of press releases. Because all information relied upon by us in preparing an advertisement about an issuer comes from a public source, it is not reliable, and you should not assume it is accurate or complete.

By your subscription to our profiles, the viewing of this profile and/or use of our website, you have agreed and acknowledged the terms of our full disclaimer and privacy policy which can be viewed at the following link: and

By accepting the Advertisement, you agree and acknowledge that any hyperlinks to the website of (1) a client company, (2) the party issuing or preparing the information for the company, or (3) other information contained in the Advertisement is provided only for your reference and convenience. The advertiser is not responsible for the accuracy or reliability of these external sites, nor is it responsible for the content, opinions, products or other materials on external sites or information sources. If you use, act upon or make decisions in reliance on information contained in any disseminated report/release or any hyperlink, you do so at your own risk and agree to hold us, our officers, directors, shareholders, affiliates and agents harmless. You acknowledge that you are not relying on the Publisher, and we are not liable for, any actions taken by you based on any information contained in any disseminated email or hyperlink.