Why Nikola Stock Got Crushed Today

Battery and hydrogen fuel cell electric truck maker Nikola (NASDAQ: NKLA) reported its second-quarter financial update this morning, and investors are reacting strongly. Shares initially spiked as the company reported a smaller loss than analysts expected. But the stock quickly reversed course when the company gave its outlook. At 11:45 a.m. EDT, Nikola shares were down about 7.7%, near its lows of the day.

Nikola reported a net loss of $0.20 per share, which was better than expectations of a $0.29 loss. But details related to production and revenue prospects for the remainder of 2021 spooked investors. The company had previously forecast revenue of between $15 million and $30 million this year, but now says that supply chain issues forced it to lower that range to between $0 and $7.5 million, according to CNBC.

Source Fool.com