Nikola's Only Revenue Is From Solar Installation For Executive Chairman

Matty-Sways

Nikola is an investor and analyst darling despite its only revenue coming from its Executive Chairman Trevor Milton.

Nikola and its Executive Chairman, Trevor Milton, have attracted significant investor interest since its debut even though the company has not yet started to sell vehicles and generate regular revenue. After opening at $37.55 on June 4, the stock climbed to a high of $93.99 on June 9. (It was at 36.72 at the close on Friday)

On Tuesday Nikola released its first quarterly report as a public company. It lost 16 cents per share during the quarter, and its sole revenue came from the solar installations. (It did not expect to generate revenue until 2021.)

“During the three months ended June 30, 2020 and 2019 the Company recorded solar revenues of $0.03 million and $0.04 million, respectively, for the provision of solar installation services to the Executive Chairman, which are billed on time and materials basis,” the company’s 10-Q said. “During the six months ended June 30, 2020 and 2019 the Company recorded solar revenues of $0.08 million and $0.06 million, respectively, for the provision of solar installation services to the Executive Chairman. As of June 30, 2020 and December 31, 2019, the Company had $3 thousand and $51 thousand, respectively, outstanding in accounts receivable related to solar installation services. The outstanding balance was paid subsequent to period end.”

“There are catalysts immediately ahead, and we therefore recommend accumulating shares in NKLA,” JPMorgan said in a note to clients

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