What happened

After racing higher yesterday, shares of Nikola (NKLA -3.27%) have slammed on the brakes and are heading in the opposite direction this morning. The company reported second-quarter 2023 financial results before the opening bell, and investors are expressing their disappointment with what they heard from the electric vehicle (EV) manufacturer.

As of 10:11 a.m. ET, shares of Nikola have fallen 16.6%.

So what

Narrowly missing analysts' top-line expectations that it would book sales of $15.43 million, Nikola reported Q2 2023 revenue of $15.36 million. More concerning for investors, though, is the fact that the company's Q2 2023 sales represented a year-over-year decline of 15.3%. Continuing down the income statement, investors found more reasons for concern. In Q2 2023, Nikola reported a negative gross margin of 180% compared to negative 161% during the same period last year. 

Separate from the financial results, investors are also concerned about the changes in management. Replacing Michael Lohscheller, Steve Girsky has been named the new CEO of Nikola effective immediately. Lohscheller is stepping down from his position so he can return to Europe and attend to a family health matter. Investors are concerned because Nikola hasn't had much stability in the C-suite, and they may be speculating that Lohscheller's abrupt resignation speaks to deeper concerns about the company's prospects.

Now what

While investors aren't charged up about the company's financial results, there were some bright spots to be found. For one, Nikola gained ground on an earnings before interest, taxes, depreciation, and amortization basis (EBITDA) as it reported Q2 2023 EBITDA of negative $125.7 million as opposed to negative $163.6 million in Q2 2022.

Pivoting to the cash-flow statement, investors will find another sign of solace as Nikola made progress toward generating organic cash flow. In Q2 2023, the company reported operational cash flow of negative $111.1 million compared to negative $142.5 million in Q2 2022.

Nikola has achieved some successes recently which belie the potholes that investors are finding with the company's Q2 2023 financial results. For those who are hopeful about this EV company's future -- and comfortable with risk -- today's a good time to pick up shares.