Nikola Corp. is pausing production of its Arizona-built, zero-emission heavy trucks for several weeks as it adjusts its vehicle mix and alters a relationship with a key European partner.

The news came during an earnings report in which the Phoenix company disclosed higher vehicle orders and revenue but also a widening loss and declining cash levels.

Nikola’s stock price, which in recent weeks has slipped below $1 a share, closed May 9 at 86 cents a share, down 13 cents a share for the day. During the early euphoria over zero-emissions vehicles, the company's stock briefly pushed above $90 a share in June 2022.

Nikola said it will temporarily halt manufacturing at its Coolidge factory at the end of May to convert production to accommodate both hydrogen fuel-cell and battery-electric trucks, with manufacturing expected to resume in July. The company did not make any announcements about furloughs or layoffs.

The company was founded by Trevor Milton, who last fall was convicted of three wire and securities fraud charges and awaits sentencing. He resigned as executive chairman in September 2020 but remains a large shareholder in the company, which has its headquarters on Broadway Road south of Sky Harbor International Airport.

Nikola isn’t the only Arizona electric-vehicle manufacturer to hit a pothole lately. Lucid Motors, which makes luxury electric cars, recently reported layoffs amid widening financial losses. Lucid has a factory in Casa Grande.

Nikola said it continues to expand its 400-acre factory in Coolidge, with completion scheduled around the end of June. The company counted 1,500 employees at the end of 2022, mainly in Arizona. Along with heavy trucks, Nikola also is striving to develop a hydrogen-fueling network and a network of electric-charging stations.

“As we have sufficient inventory of the battery electric truck, we will temporarily pause production in Coolidge as we modify the assembly line to accommodate both hydrogen fuel-cell and battery-electric builds on the same line," the company said.

Partnership between Nikola, Iveco also breaking up

Nikola and Iveco Group earlier said they are phasing down their four-year-old partnership, with Iveco concentrating on European production of its own battery-electric and fuel-cell electric trucks and Nikola focusing on North American operations. Iveco will assume full ownership of their joint venture in Ulm, Germany.

During the first quarter, Nikola said it produced 63 battery electric trucks and delivered 31 to dealers. That was down from 133 trucks produced and 20 shipped in the fourth quarter of 2022.

Still, Nikola’s CEO, Michael Lohscheller, said the company had a “very solid” first quarter ending March 31. “We have the right products at the right time, and as we move forward, we will be focusing on the North American market, hydrogen fuel-cell trucks, the ... hydrogen-refueling business and autonomous technologies.”

The announcement with Iveco essentially means Nikola is selling its stake in the European manufacturing joint venture for $35 million and 20.6 million shares of Nikola common stock that will be returned by Iveco, which will remain a key supplier.

During the first quarter, Nikola reported rising revenue of $11 million but a widening loss of $169 million or 31 cents a share. That compared to revenue of just under $2 million and losses of $153 million and 37 cents a share one year earlier. The number of shares outstanding increased to around 550 million in the latest period from 415 million.

Also, Nikola reported $121 million in cash and short-term equivalents, down from $233 million at the end of 2022.

Reach the writer at russ.wiles@arizonarepublic.com.

This article originally appeared on Arizona Republic: Nikola to halt production of zero emission trucks at Arizona factory