Connect with us

Hi, what are you looking for?

Stocks

Nikola Corporation Shows Promising Start to Trading

Shares of Nikola Corporation, which just began trading last week, are already up.

The most well-known name in electric vehicles is currently Tesla, named for the famous electrical engineer Nikola Tesla. However, in a surprisingly gutsy move, a newer electric vehicle company has appeared with the other half of the famous inventor’s name: Nikola Corporation.

Nikola deals in battery-electric and hydrogen-electric vehicles, not unlike Tesla. It was formed in 2015, but run as a private company until just recently. Back in March, Nikola announced a merger with VectoIQ, a public acquisitions company headed by Stephen Girsky, the former vice chairman of General Motors. After the merger succeeded, Nikola officially began trading last week on June 4, and so far, the numbers are promising.

During trading on Monday, the company’s stock value doubled, and at one point, even exceeded Ford’s valuation of $29.9 billion. This morning, that valuation increased another 20%, though due to current market volatility, those gains were scaled back to 10%. Still, it’s an impressive gain for such a young stock. One of the primary contributors to yesterday’s boom was an announcement from the company’s CEO, Trevor Milton, about the reserve date for Nikola’s new Badger truck.

Despite its stock surge, Nikola does not currently foresee a profit until at least 2021, another similar position to Tesla. The willingness of investors to get on board with both companies despite this shows the promise of electric and hydrogen-powered vehicles, which is also reflected in the increasing value of hydrogen fuel cell makers like Plug Power and Bloom Energy. Nikola definitely has big plans in store, projecting a production of 30,000 fuel cell electric vehicle trucks by 2027.

You May Also Like

News

In the past year, Peloton, manufacturers of stationary exercise bicycles and treadmills, has been experiencing some severe financial difficulties. The company went through a...

News

While the ongoing supply chain problems affecting the global economy have had the expected effects, they’ve also had some decidedly unexpected effects. Specifically, many...

News

As gas prices continue to rise and consumer confidence drops, not to mention the ongoing war in Ukraine, the European economy is taking a...

News

As the environmental need for electric vehicles becomes more pressing, and the car-buying public becomes more eager for them, automotive manufacturers are getting ready...

News

This morning, Coinbase CEO Brian Armstrong sent a mass email out to his company informing everyone that, as stock and crypto prices slip and...

News

Last week, a former cybersecurity expert for Twitter, Peiter “Mudge” Zatko, released a whistleblower report on the social platform. In his report, Zatko cited...

News

Zelle is a peer-to-peer payment app and service that can be used by individuals to send and receive money, in a similar vein to...

News

Earlier this week, following the third-term victory of Chinese President Xi Jinping, market shares in Hong Kong experienced a sudden, violent sell-off. Xi’s controversial...