Take a fresh look at your lifestyle.

Share under pressure: After a brilliant start to the stock market: That’s why the Nikola share comes under the wheels | message


• Startup with an innovative business idea
• Share plunges after a brilliant start to the stock market
• CEO blames Tesla disciples

Nikola convinced many investors with his idea of ​​becoming the “Tesla for trucks”. Unlike the well-known US group, Nikola does not focus on electromobility, but focuses on hydrogen. This is considered a candidate for possible future technologies, which was one of the reasons why the US company made a brilliant start on the stock exchange.

But investors’ euphoria is waning – and although the Nikola share has continued to rise significantly since the stock market began, earnings have crumbled in recent days after the stock got under the wheel more clearly.

Nikola boss blames Tesla disciples

For Nikola CEO Trevor Milton, competitor Tesla is to blame for the recent crash in Nikola stock. Specifically, he doesn’t Elon Musk and responsible for the management of the electric car maker, but probably some Tesla fans who are said to have launched coordinated attacks against Nikola on Twitter. “We tracked the negative tweets, and most don’t come from Nikola shareholders, but from hired hands who claim they are selling all of their stocks to fuel fear and urge others to do what turns out to be Anti-Nikola or paid attacks turns out, “said the manager.

Tesla fans have been the target of malicious attacks themselves for years and are now targeting Nikola, according to Bloomberg, referring to tweets by the Nikola boss.

The massive share sale, which was responsible for a large part of the price losses at the start of this week, was assumed by a single trader, Milton also claimed on Twitter, but deleted the tweet again shortly afterwards. A screenshot of a user who saved Milton’s post can still be found:

“Someone moved 1.5 million stocks in one trade today, ~ $ 75 million in addition to all other trades. It wasn’t the overall market that dragged us down, or the herd mentality. It was a person’s negligence and greed did everything at once, regardless of others, “Milton had justified the crash.

More business model than business?

But while Trevor Milton sees himself and his company as the victim of malicious attacks, market participants see other reasons for the recent slump in Nikola. Because the stock price had actually gone very high very quickly since the IPO last month. Investors had been convinced of the company’s idea, but Nikola still has no physical product.

This was also criticized by RBC analyst Joseph Spak, who gave the Nikola share a “hold” rating and a price target of $ 46. Although he sees a certain potential in the startup, the expert complained that Nikola still had “more of a business plan than a real business”, which made it difficult for him to value the share.

In fact, Nikola apparently hit the nerve with his concept of a fuel cell truck, but the vehicle does not yet exist. Potential future customers can pre-order the truck for a deposit, but the vehicle is only available on paper and not as a prototype. Before the second half of 2021, pre-orderers probably cannot hope for delivery.

Nikola stock remains risky bet

As long as Nikola doesn’t have a serious product on the basis of which investors and analysts can evaluate the value of the company, the Americans will remain a startup with an innovative idea, the implementation of which is in the stars.

Editorial office

More news about Tesla

Image sources: Nikola

Leave A Reply

Your email address will not be published.