What happened
Nikola (NKLA 0.76%), the onetime darling manufacturer of next-generation specialty electric vehicles (EVs), had another tough day on the market Wednesday. CEO Mark Russell gave an interview on CNBC in which he touted several positive developments for Nikola. Investors, however, didn't seem to be buying these pronouncements, and the shares slipped by almost 2% on the day.
So what
Russell appeared in a lengthy segment on the channel's Closing Bell in which he touted Nikola's recent production launch and other aspects of its business.
Image source: Nikola.
"We have no shortage of demand," Russell said of Nikola's EV semi trucks. "Everybody wants and needs zero-emission trucks."
But no company can escape its past, and for Nikola this means incidents such as founder and ex-CEO Trevor Milton being indicted on several counts of criminal fraud by a grand jury, and embarrassing claims of fakery with a prototype truck. Although Russell handled queries about these subjects well, they served as a painful reminder that the company doesn't have the most reputable history.
Now what
Another touchy subject was the supply shortages that have convulsed the global industrial sector, particularly affecting companies with products that rely on advanced tech functionalities, like Nikola.
"I've never seen shortages so pervasive and so acute," Russell admitted. That's to be expected, and the CEO did a fine job fielding a question on the subject honestly. But again, it's a reminder that Nikola still faces daunting challenges, even as it moves into a new and -- hopefully for faithful investors -- more prosperous era in its life.
