There’s something quite special about Nikola’s (NASDAQ: NKLA) reversal. The company has been on a tumultuous journey involving accusations, management changes, delays, obstacles, and more. In the last week or so, following the announcement that Nikola trucks have finally reached production, there’s been a great sentiment shift regarding the once-contentious EV truck maker. In situ of the production update, Nikola’s analyst day seemed to further solidify the new era for Nikola with clearly implemented strategies and operational progress.
Firstly, Wedbush analyst Daniel Ives outlined Nikola’s impressive progress in reaching technology milestones that have been neglected by the Street amid past obstacles and development issues that have plagued the company over the last few years. Clarified over the analyst day, Ives came away from the day “incrementally more bullish” on Nikola, expecting direct momentum in the years to come. Momentum is something that Nikola has severely lacked up to this point, outgunned by a lack of fundamentals. Ives maintains a neutral rating and a $15 price target.
The reaction was much of the same from Deutsche Bank analyst Emmanual Rosner, who left the day “highly encouraged”. As trucks are finally starting to roll off the assembly line, the company creeps ever-nearer to revenue generation; which could align with high demand bearing in mind Nikola’s unique space in the industry, in particular, a solid pipeline of commercial customers and increasing incentive programs popping up across the US. Rosner holds a Hold rating on NKLA shares.
Nikola has pivoted in a way that has regained analyst optimism towards the company. Sometimes it takes a lot to change opinion, but other times all that is required is a clear path to financial fundamentals. I have faith that Nikola could become a market leader in the EV truck space, but all is still to play for.
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Oliver is a financial writer and analyst specialising in the US stock market, with years of personal experience in understanding micro/macroeconomic structures, market trends and fundamental analysis.