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Nikola shares are down 12% after pandemic-related supply chain disruptions

Nikola Corp. shares fell more than 12% in premarket trading on Wednesday after the electric vehicle maker reported a second-quarter loss wider than Wall Street expected, saying the COVID-19 pandemic was disrupting the supply chain.

Nikola NKLA,
said on Tuesday afternoon that it lost $ 86.6 million or 33 cents per share in the quarter, compared to a loss of $ 16.8 million, or 6 cents per share, in the prior year period. Adjusted for one-off items, Nikola lost 16 cents per share in the quarter.

Analysts surveyed by FactSet had expected Nikola to post a GAAP loss of 13 cents per share with no earnings.

Related:Chinese electric car manufacturer Li Auto is up 50% after the IPO

“The global pandemic caused disruptions in Nikola’s supply chain, but mitigation efforts are underway to mitigate the resulting risk to production timelines,” the company said in a statement. “At this time, we believe that Nikola’s long-term goals will remain substantially untouched by COVID-19.”

Nikola said his Nikola Tre, a hydrogen powered long-haul truck, is on track to start production in the fourth quarter of 2021. The first few units will be produced at the Nikola plant in Germany, which will be modified. Once completed, this facility can produce up to 10,000 units per year, Nikola said.

In addition to building in Germany, Nikola said it was groundbreaking on July 23 at a production facility in Coolidge, Ariz.

“Once completed, the Coolidge production facility will be able to produce up to 35,000 trucks a year at full capacity in two shifts. Phase one of this construction is expected to be completed in the fourth quarter of 2021, ”the company said.

Nikola went public in June and shortly after that, the stock doubled.

Within days, Tesla Inc. TSLA,
Chief Executive Elon Musk urged his company to “ pull out all the stops ” with the Tesla Semi, Silicon Valley’s electric long-distance truck, expected to be available in 2021.

Also see:Nikola on his way to “disrupt the transportation,” says JP Morgan

Nikola’s popularity is also part of a wave of IPOs through a special-purpose acquisition company, or SPAC, also known as blank check companies. Electric Car Manufacturer Fisker Inc. also chose to go to the stock exchange via a SPAC.

Nikola’s shares have gained 273% this year, compared to a gain of around 2% for the S&P 500 SPX,
+ 0.46%
and in contrast with a loss of about 6% to the Dow Jones Industrial Average. DJIA,
+ 0.83%