Nikola Corporation (NKLA stock) sinks despite electric vehicle sector surge


  • NASDAQ:NKLA continues to flounder as it falls 0.50% during Wednesday's trading session.
  • Electric vehicle stocks continue to roll leaving Nikola further and further in the dust.
  • Another rival debuts on Wall Street as the electric truck race heats up.

NASDAQ:NKLA has had a rough few months, to say the least, and as the competition and industry continue to roll, Nikola remains stuck in neutral and is in danger of stalling. Shares dropped by 0.50% on Wednesday as shares closed the day at $24.11. The stock is now trading at levels well below its 50-day and 200-day moving averages and is quickly heading back down towards its all-time low price of $10.20. 

Nikola has lost nearly all of its credibility this year, even though General Motors (NYSE:GM) is currently negotiating to take on a large stake in the company. After short-seller website Hindenburg Research outed CEO Trevor Milton and the firm itself for fraudulent actions, Milton resigned from his post and quickly deleted all of his social media posts about Nikola. The stock has continued to crumble throughout all of this and it is difficult to believe that just a few months ago, shares were trading at all-time highs of $93.99. Nikola is quickly approaching its lock-up expiration date of November 30th, which could see a further selloff by insiders which would decimate the already beaten-down stock.

NKLA stock price unable to rally

NKLA stock price chart

On a day when fellow electric vehicle makers like Nio (NYSE:NIO) and Tesla (NASDAQ:TSLA) soared on analyst upgrades, Nikola continued its descent into the red. To further compound its troubles, direct rival Hyliion (NYSE:HYLN) recently debuted on Wall Street via a SPAC IPO and has been doing well in its first two weeks as a publicly-traded company. With no end in sight to its current troubles, Nikola should be well off investor radars until news of progress with General Motors is reported. 

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