- 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.
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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.
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