Nikola’s Stock Jumps as it Begins Producing E-Trucks!
Listen to this article
Nikola Corp.‘s stock soared when the firm started producing revenue-generating vehicles and showed that it is making headway on hydrogen infrastructure.
Nikola highlighted the accomplishments in a late-Wednesday presentation to Wall Street analysts. On Thursday, the stock rose as much as 19% in a single day, the biggest intraday gain since December 23.
In a developing area that includes Tesla Inc. and established heavyweights like Volvo AB, the Coolidge, Arizona-based business views itself as a pioneer in clean-energy heavy vehicles. At the same time, Nikola has been working to restore its image following the prosecution of its creator, charges that it deceived investors, and a supply-chain issue that caused the introduction of its battery-electric truck to be delayed.
On Wall Street, Nikola’s reports were greeted with excitement. After a test trip in both the BEVs and future fuel-cell vehicles, JPMorgan analysts said they were left with a “good impression.” The carmaker is achieving “fast progress,” according to RBC Capital Markets analyst Joseph Spak. Nikola’s operational progress and customer demand, according to Deutsche Bank analyst Emmanuel Rosner, are “highly encouraging.”
Nikola’s margin estimate is cautious, according to CEO Mark Russell, and the company will be able to hike pricing on battery-electric semis over the current $300,000 sticker costs. Gross margins are expected to be negative 60 percent to negative 75 percent this year, before becoming positive next year, according to Nikola.
In 2025, the corporation anticipates margins to reach as high as 20%.
