Nikola - the new Tesla?
Fiona Cincotta June 11, 2020 1:59 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.
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