The revolving door for the CEO of Nikola Motors spun again as company chairman Stephen Girsky added CEO to his title as Michael Lohscheller departs.
While Girsky will now be the fourth person in four years to take on the role, Lohscheller’s departure is not a business decision as he’s leaving due to a “family health matter.” His resignation is immediate and he’s returning to Europe, although he will remain in an advisory role through the end of September to ease Girsky’s transition.
Girsky, who’s been a vocal supporter of the company’s push to not only continue its work with hydrogen fuel-cell powered commercial and semi trucks, but battery-electric versions of them as well. He put an enthusiastic post on LinkedIn Friday, “First day on the job. Excited to be here. Come visit and watch us as we decarbonize the future of class 8 trucking.”
Mixed results
Not only did the company reveal the change at the top, it reported its second quarter earnings results, which were a mixed bag, led by it reiterating “significant doubts” about continuing as a going concern.
To address the funding issue, investors on gave the company the green light to issue more shares. The company needs $600 million to execute its business plan, which the issuance will help with; however, it will not be entirely dilutive equity capital, Girsky said on a call with reporters. That kind of talk, along with the change at the top, shook investors and the stock fell 26.2%.
Before Friday’s decline, Nikola’s share price jumped about 60% this year, Reuters reported.
Nikola reported a second-quarter loss that was not as bad as expected, largely due to lower production of its Tre battery-electric trucks during the quarter helping keep costs from skyrocketing.
Officials forecast third-quarter revenue of $18 million to $28 million, compared with estimates of $34.5 million, according to Visible Alpha. The company said it expects 300 to 400 deliveries this year, revising that up from between 250 and 350 it projected earlier.
Next up
Girsky’s been around the automotive and commercial truck industry for more than three decades, including a stint at Vice Chairman at GM. He’ll also retain his position as managing partner of VectoIQ, LLC, an independent advisory firm based in New York.
He served as president and CEO of VectoIQ Acquisition Corp. I from its incorporation in January 2018 until the consummation of its business combination with Nikola Corp.
“Since Nikola’s inception, I have been a champion of its mission. I am energized to take on this role and build upon the work of Michael and the team,” Girsky said in a release.
“I have had the pleasure of getting to know many of Nikola’s executives during my time on the Board and look forward to working with them as well as our talented employees as we continue to execute on our strategy and deliver on our milestones to best serve our valued partners, customers, and suppliers.”
Changing leaders, mission remains
While Girsky was quick to refocus attention on the company’s mission, he’s still the company’s on its third chief executive in less than 18 months, which makes it tougher for the one-time darling of the hydrogen fuel cell innovators to continue its comeback from near death. Seemingly, once the company begins to gain some traction, it faces a setback.
Lohscheller came to Nikola from Vietnamese EV maker VinFast. He spent just two months there after leaving in December 2021 for “personal reasons.” Before that he was CEO of Opel, helping make the transition from GM’s ownership to PSA Group, which later merged with Fiat Chrysler to become Stellantis.
Prior to Lohscheller was president at the start of his tenure, reporting to then-CEO Mark Russell, who was part of the executive team that dealt with the issues centered on former Chairman Trevor Milton. Milton was accused — and later fined $125 million by the U.S. Securities & Exchange Commission — of misleading investors about the capabilities of its hydrogen fuel cell-powered vehicles, suggesting they were further along in development than they were.
The focal point being a video of its Nikola One appearing to be driving under its own power, when it was actually rolling down a slight decline.
The video became the centerpiece of a report by short-selling research firm Hindenburg Research claiming Nikola was based on “intricate fraud built on dozen of lies” perpetrated by Milton. That quickly triggered an SEC probe and led to the decision by Milton to resign last September.
Big turnaround
Since then, the company’s staged a massive turnaround. Focusing on the development and production battery-electric and hydrogen fuel-cell powered Class 8 trucks. In fact, it announced earlier this year it plans to build a significant hydrogen infrastructure system to fuel a projected fleet of heavy-duty Class 8 commercial trucks powered by hydrogen-air fuel cells.
The company expects to field up to 7,500 of its Tre line of Fuel Cell Electric Vehicle (FCEV) trucks by 2026, and it will need hydrogen available across the U.S. and Canada to make those vehicles viable.
Nikola’s made several announcements of increased investment in hydrogen technology and distribution this year. In mid-January, Nikola revealed the development of a mobile hydrogen refueling truck capable of refueling its FCEV trucks in the field.