Nikola Rises Late On ‘Continuing’ GM Talks; Workhorse, Kandi Kick Off Heavy Slate Of EV Earnings

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Nikola (NKLA) reported quarterly results late Monday, but NKLA stock rose slightly overnight after the embattled electric truck startup said GM talks are “continuing.”

Before the open, Workhorse Group (WKHS) kicked off a heavy week of earnings from electric car stocks. Workhorse stock rose despite the electric truck company lowering production guidance.

Soaring Tesla (TSLA) shares in 2020 fueled the rise of many new electric vehicle stocks this year. Several EV stocks emerged via blank check deals, including Nikola and Workhorse-backed Lordstown Motors (RIDE).

Nikola Earnings Late

Electric-truck startup Nikola reported a net loss of 31 cents and an adjusted loss of 16 cents. Analysts expected a third-quarter net loss of 35 cents a share on sales of $50,000. There are no year-ago numbers. Nikola also reported $918 million in cash.

Nikola said in the earnings release that GM talks are continuing, but didn’t say much else on the subject.

“Nikola is continuing its discussions with General Motors (GM).  Nikola will provide further updates when appropriate or required.”

For the third quarter, Nikola’s plans for a Tesla Cybertruck rival and a proposed GM partnership took backstage to the abrupt exit of its founder, amid serious fraud and sexual assault claims

Nikola stock, a hydrogen fuel-cell play as much as an electric truck play, debuted in March after a blank check merger. It has taken investors on a wild ride since. Talks continue with GM on a manufacturing partnership, but either side could terminate the deal if it isn’t closed by Dec. 3. Any updates on the GM partnership and the Nikola Badger pickup will be watched.

Nikola stock rose 1.1% late after closing down 4.85% at 18.63.

Electric-Car Stocks: Workhorse Earnings

But Workhorse, which makes EVs for last-mile deliveries, posted a net loss of $84.1 million, vs. $11.5 million a year ago. No per-share numbers came with the company’s earnings release. It posted revenue of $565,000 vs. $4,000 a year ago. Analysts were expecting a net loss of 11 cents per share and revenue of $400 million, according to Zacks Investment Research.

In addition, Workhorse warned fourth-quarter production will be “substantially lower” than prior guidance of around 300-400 vehicles. It cited battery supply issues and staff quarantines due to the coronavirus pandemic. The company also announced a purchase order of 500 all-electric delivery vans from Pitchard Companies, a commercial vehicle distributor.

Workhorse stock retreated but then rallied for a 9.7% jump to 18.96 in Monday’s stock market trading.

In June, Workhorse announced “late-stage milestone certification” for its electric delivery vans. The U.S. Postal Service and UPS (UPS) are potential customers. The company also has a 10% stake in Lordstown Motors, which is producing electric pickup trucks from an old General Motors (GM) plant.

Kandi Earnings Show A Loss

Early Monday, China’s Kandi swung to a net loss of 3 cents a share from earning

s of 23 cents a share a year ago. Revenue dropped 40.9% to $18.7 million, as EV parts sales fell 67.4%, offset by a 51.6% gain in off-road vehicle sales. Analysts were expecting a net loss of 11 cents per share on sales of $21.6 million.

Kandi stock dived 17% to 7.78.

Other Electric-Car Stocks Due

New EV stock Hyliion Holdings (HYLN) is due Thursday. Recent Chinese initial public offering Xpeng Motors (XPEV) is also due Thursday. Fellow China IPO stock Li Auto (LI), which announced a massive recall of its Li One electric SUVs last week, reports Friday. Reliable forecasts are not yet available for those companies. Next week, Nio (NIO), the so-called Tesla of China, reports Nov. 17.

On Monday, October sales data showed electric car sales continue to strengthen in China. Tesla sold 12,143 electric cars in China in October, as a new price cut helped buoy demand. But Tesla sales ranked fourth in China EV sales, behind a GM joint venture and local player BYD.

Tesla stock jumped early, but closed down 2%, just below its 50-day line.

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