Nikola stock has fallen 69.5% YTD. Can it recover from the founder’s mistake?
Trevor Milton, its founder, was recent;y convicted of fraud by a Manhattan jury.
The company is set to report earnings on November 3, 2022.
The Nikola Corp (NASDAQ: NKLA) stock has fallen 69.5% this year, and many wonder whether the company can recover from its founder’s mistakes and tarnished reputation. Trevor Milton, Nikola’s founder, was recently convicted of fraud by a jury in a Manhattan court.
The jury found Milton guilty of deceiving investors of his company’s progress in designing and building an electric or hydrogen-powered 18-wheeler truck. In addition, Milton was convicted of passing off a General Motors truck as a Nikola-designed and built truck.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Sponsored content
Learn the markets with IG Academy
Build your knowledge with IG Academy educational content, then use a
demo account to practise what you’ve learned on the IG platform.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Sponsored content
See how trading works before risking real money
IG’s demo gives you access to thousands of markets and £10,000 in
virtual funds, so you can explore the platform and test your ideas first.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Sponsored content
Turn trading theory into practical experience
Learn with IG Academy, explore charts and market tools, and practise
strategies in a simulated trading environment before going live.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Sponsored content
Ready to take your learning further?
IG combines market education, analysis and an established trading platform,
giving you the tools to keep learning as you develop your trading skills.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Luckily for Nikola, the company has managed to turn itself around after Trevor was forced to resign in 2020, leaving the company’s shares in shambles. The EV truck manufacturer now has a new management team led by CEO Mark Russell.
The company has been producing and delivering its Tre Class 8 battery-electric vehicles this year. However, it had to recall all 93 vehicles delivered to fix an issue with the seat belt anchor assembly.
Nikola is expected to release its Q3 earnings report on November 3, 2022, with many investors hoping to see the firm progress on its various milestones. Its founder’s recent conviction and planned sentencing on January 27, 2022, will end the fiasco that damaged the company’s reputation for years.
However, Milton will likely appeal the conviction, extending his sentencing date since it is hard to imagine that he has firm ground to overturn the jury ruling. Meanwhile, all eyes will be on Nikola in November as its earnings report will shed light on the company’s financial position and operations.
*This is not investment advice.
Nikola stock price.
Source: Tradingview
The Nikola stock price has fallen 69.46% this year. Can it recover from its founder’s reputation?
Simon ist Autor und Analyst für den Bereich Finanzwesen und blickt auf über sechs Jahre professionelle Erfahrung als Trader zurück. Er absolvierte einen Bachelor in Mathematik und Informatik und hat eine Leidenschaft für die Finanzmärkte. Simon handelt FX, Rohstoffe und Aktien. Er konzentriert sich auf Price Action Trading.
