After a 99% Plunge, Nikola Shocks Shorts With a Mic Drop… Walmart and Home Depot Are On Deck

The bulls managed to wrestle victory from the bears this week, despite Monday’s epic selloff that had the S&P 500 down 3% and the Dow shedding 1,000 points.

Today’s trading session ended with the S&P 500 up 0.47%, the Nasdaq added 0.5%, and the Dow squeaked out a 0.1% gain. Sure, the earlier chaos left the Dow and Nasdaq down 0.6% and 0.18% respectively, but hey, that’s practically a win after Monday’s disaster. Nvidia, however, didn’t get the memo and is still down 2.3% for the week.

As we head into the final stretch of earnings season, most companies are impressing Wall Street —78% have beaten expectations. Next up, we’ve got the retail heavyweights like Walmart and Home Depot under the microscope.

After Plunging 99%, Nikola Leaves Shorts Stunned With Mic Drop Announcement

Back in December, things looked grim for Nikola, the electric semi maker that was barely hanging on. Their stock had plummeted by 99%, and 22% of their shares were being shorted as traders bet against the company's survival. It was a dire situation, with shorts circling like vultures and MacroAxis giving them just a 19% chance of pulling through. 

To make matters worse, their CEO was jailed for fraud, accused of lying to investors about their truck development. But, in a move no one saw coming, Nikola pulled off a shocking comeback—like NBA MVP Nikola Jokic sinking a game-winner at the buzzer, leaving everyone stunned.

Nikola's stock shot up over 8% today, and it’s not because Jerome Powell announced more BRRRRRRRR. Nope, it’s because the company just dropped its Q2 earnings like a mic drop at a rap battle. Let’s look at the numbers: Nikola reported a revenue of $31.3 million, beating the $27.1 million estimate, which is a nice way of saying they finally exceeded expectations for once.

Oh, and that’s not all—Nikola doubled its truck deliveries, shipping out 73 big rigs this quarter compared to just 45 last year. I know those numbers sound anemic but remember, that’s an 80% increase in deliveries. For a company that was recently on life support, that’s like waking up from a coma and immediately running a marathon.

Nikola’s pivot away from battery-powered trucks to hydrogen fuel cell vehicles (FCEVs) has been like watching the guy off of “My 600-Pound Life” switch from a diet of pizza and soda to kale smoothies—painful at first, and maybe a few faceplants on the treadmill, but the results are starting to show. They’ve acquired new customers, including Walmart Canada and their orders are on the rise. 

At the end of Q2, Nikola had 99% of FCEV and 23% of battery-electric vehicle (BEV) HVIP vouchers in California. In plain English, they’re dominating the hydrogen truck game, especially in a state that’s practically giving out gold stars for being eco-friendly.

The company is also on track to roll out its revamped battery-electric trucks by the end of the year. While the EV industry is currently experiencing a bit of a hangover from the pandemic-era boom, Nikola’s results suggest that not everyone’s tapped out just yet. With a cash reserve of $266.5 million, Nikola has a little more room to maneuver as it navigates the tricky waters of the commercial truck market.

So, what does the future hold for Nikola? Well, if this quarter is any indication, they might just be on the road to recovery. Sure, they’re not out of the woods yet—let’s not forget they still reported a gross loss of $54.7 million—but the fact that they’re beating expectations and gaining traction in the hydrogen market is a good start.

Stock.News does not have positions in companies mentioned.