Nikola - the new Tesla?
Fiona Cincotta June 10, 2020 11:59 AM
The little known electric truck start up, which went public last week surged in value yesterday over taking the market cap of Ford $28.8 billion at several points in intra day trading, despite not yet selling a single vehicle.
Nikola drove into the spotlight in yesterday. The little known electric truck start up, which went public last week through a reverse merger with VectorIQ, surged in value over taking the market cap of Ford $28.8 billion at several points in intra day trading, despite not yet selling a single vehicle.
Nikola is developing both commercial and passenger vehicles using battery and hydrogen fuel-cell technology. The firm is targeting the commercial trucking sector at a time when the likes of Amazon, United Parcel Force and other road haulage companies have pledged to reduce their carbon emissions. They say timing is everything.
Nikola allows traders to bet on the growth potential of electric transportation, in a similar way to Tesla.
There is little doubt that we are currently on a journey shifting from fossil fuel energy to electric. Nikola, despite forecasting 0 revenue in 2020, and not expecting to fully use its Arizona assembly plant (which it hasn’t built yet) until 2028, is ahead, well down the road to a production line and expecting to generate revenue next year.
With big names lining up this stock could be more than hot air, although it could face the similar struggles as Tesla with valuation.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.