On August 4, the electric vehicle manufacturer Nikola named its fourth CEO in several years as it attempts to negotiate several difficulties, such as dwindling cash reserves, supply chain limitations, and a shift to hydrogen fuel cell technology.
The Phoenix, Arizona-based company’s shares dropped about 13% in early trade following the announcement that Chairman Stephen Girsky will succeed Michael Lohscheller as CEO, starting immediately.
Girsky previously served on the board of General Motors and as an advisor to the CEO and finance chief of the Chevrolet parent. According to the company, Lohscheller is resigning due to a family health issue and will return to Europe. However, they claimed he would continue serving in an advisory role until the end of September.
Following Girsky’s appointment, Steve Shindler, a board member since 2020, will act as chairman.
On the other hand, Nikola announced a reduced second-quarter loss due to decreased Tre battery-electric truck manufacturing between April and June, which helped control expenses. The truck manufacturer has been struggling with declining cash flow as it spends money to increase production. In contrast to projections of $34.5 million, the manufacturer of Tre battery-electric trucks predicts third-quarter revenue of $18 million to $28 million.
However, at the company’s annual shareholder meeting, investors adopted a proposal that permits the truck manufacturer to issue more shares to generate money.
Nikola announced last month that it would sell the assets of battery manufacturer Romeo Power, which it acquired for $144 million less than a year ago.
