Shares of Nikola Corp. (NASDAQ:NKLA) soared by more than 10% in trading on Tuesday after the manufacturer of zero-emission commercial vehicles announced that the deliveries of its Class 8 hydrogen fuel cell trucks surged by 80% in the second quarter compared to the previous quarter when 40 trucks were delivered.
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The company delivered 72 Class hydrogen fuel cell trucks to wholesalers in Q2, which exceeded its own guidance of 50 to 60 trucks. Overall, in the first half of the year, NKLA delivered 112 hydrogen fuel cell trucks to wholesalers.
NKLA’s Rising Deliveries – A Positive Sign?
Nikola’s rising deliveries are a positive sign. They demonstrate progress in transitioning to hydrogen-fuel cell trucks after a challenging 2023 when the company had to recall all its battery-powered vehicles, which was due to battery fires caused by coolant leakage.
Additionally, in the first half of the year, the company has gained new customers like Walmart Canada (NYSE:WMT). Furthermore, trucking company AiLO Logistics placed an order for 100 hydrogen trucks.
Nikola is also opening refueling stations to support its hydrogen trucks. However, high interest rates and a strain on consumer budgets have resulted in lower EV demand, causing the firm’s shares to drop more than 60% year-to-date.
Is NKLA Stock Worth Buying?
Analysts remain cautiously optimistic about NKLA stock, with a Moderate Buy consensus rating based on two Buys and five Holds. The average NKLA price target of $1.10 implies a downside potential of 86.7% from current levels.
