- NASDAQ:NKLA added 3.04% on Tuesday amidst a choppy day on the broader markets.
- The electric truck industry seems to be falling further out of favor with investors.
- Ex-CEO Trevor Milton cashes in on $49 million worth of Nikola stock last week.
Update April 8: EVs are making a comeback and Nikola Corporation (NASDAQ: NKLA) seems to be leading the pack. Shares of the Phoenix-based carmaker have risen by over 3% at the time of writing, changing hands at around $12.70. Other shares such as CCIV and NIO are on the rise as well. Concerns about a chip shortage have been pushed away for optimism about a global recovery.
NASDAQ:NKLA has been desperately trying to claw its way back from market obscurity following a short report that revealed fraudulent accusations and shareholder deception late last year. On Tuesday, Nikola actually rose by 3.04% to close the trading session at $13.22, outpacing both the NASDAQ index and the broader markets. The stock price is still a far cry from its 52-week high price of $93.99, which is nearly unthinkable given the current market sentiment of the company. Nikola is trading well below its 50-day and 200-day moving averages and has been caught up in the recent growth sector correction that has plagued the NASDAQ index.
Stay up to speed with hot stocks' news!
But Nikola is not the only company that has seemed to fall out of favor with investors. Fellow electric truck companies like Lordstown Motors (NASDAQ:RIDE), Workhorse Group (NASDAQ:WKHS), and Hyliion Holdings Corp (NYSE:HYLN) are all down massively since the start of 2021, and with many of these companies struggling to sell vehicles, investors may be starting to wonder if the electric delivery truck market is as lucrative as we once believed. Nikola itself is still preparing to manufacture and sell its Tre electric semi trucks, potentially by the fourth quarter of 2021.
NKLA Stock news
Investors felt a bad taste in their mouths last week when ex-CEO and much maligned figure Trevor Milton cashed in $49 million of Nikola stock he still owned. Despite Milton stepping down from the company and removing himself from any ongoing operations, the damage he did when in charge is still affecting shareholders today, and truthfully, the stock may never be able to fully recover.
Previous updates
Update April 8: Nikola Corporation (NASDAQ: NKLA) has closed Wednesday's session with a drop of 7% to close at $12.29. Shares of the electric vehicle maker kicked off the day with a rise but tumbled alongside the rest of the sector. Concerns about a global chip shortage have been weighing on the manufacturing of automobiles of all kinds. That may also affect sales of the young company. Thursday's premarket trading is pointing to a bounce of nearly 2% to around $12.53.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD: The hunt for the 0.7000 hurdle
AUD/USD quickly left behind Wednesday’s strong pullback and rose markedly past the 0.6900 barrier on Thursday, boosted by news of fresh stimulus in China as well as renewed weakness in the US Dollar.
EUR/USD refocuses its attention to 1.1200 and above
Rising appetite for the risk-associated assets, the offered stance in the Greenback and Chinese stimulus all contributed to the resurgence of the upside momentum in EUR/USD, which managed to retest the 1.1190 zone on Thursday.
Gold holding at higher ground at around $2,670
Gold breaks to new high of $2,673 on Thursday. Falling interest rates globally, intensifying geopolitical conflicts and heightened Fed easing bets are the main factors.
Bitcoin displays bullish signals amid supportive macroeconomic developments and growing institutional demand
Bitcoin (BTC) trades slightly up, around $64,000 on Thursday, following a rejection from the upper consolidation level of $64,700 the previous day. BTC’s price has been consolidating between $62,000 and $64,700 for the past week.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.