Nikola (NKLA) Surges 14.5% As The Company Reaches Truck Production

Trade NKLA Stock Your Capital Is At Risk
Ollie Martin
Updated: 24 Mar 2022

Key points:

  • Once a subject of fraud, Nikola wins back investors as the company finally reaches production
  • NKLA stock soared 15% this morning as the company starts to regain trust
  • The 350-mile electric Tre semi-truck is expected to be followed by a hydrogen fuell-cell Tre
  • The company expects to deliver between 300 and 500 vehicles in FY22

Nikola (NASDAQ: NKLA) was once one of the most contentious new arrivals to the EV market. The company faced strong allegations of defrauding investors following a SPAC merger; another type of public listing that has bred mistrust and overembellished projections within the emerging EV sector. Nikola is a strong contender for a new range of renewable HGV travel; its production lines include the electric Tre semi-truck and the hydrogen fuel-cell powered Tre – expected to have a range of up to 500 miles. 

new-recommended-broker-banner

Investors finally had something to sing about this morning following an announcement that production of the electric Tre has finally started at the company factory in Coolidge, Arizona – sending the stock soaring premarket, retaining a 15% gain with the opening bells. In terms of market share, so far Nikola stands almost alone in terms of competition with Tesla’s semi-truck yet to reach the market.

Read Also: Best EV Stocks To Buy Right Now

The company plans to begin deliveries in Q2 of this year, a reasonably impressive target given the current manufacturing climate. In terms of FY production outlook, Nikola expects delivery of between 300 and 500 trucks; with plans to level up production output the following year. It's critical at this stage that Nikola cement themselves as a leader in the EV truck market without getting ahead of themselves through setting unrealistic projections in a bid to win investment; something we often see with EV companies just starting production. 

With Trevor Milton’s ethical mishap in the past; and production underway, Nikola is incredibly well-positioned in its specific market space. Sentiment might need a little more sway as the company approaches delivery deadlines, earnings, etc; but all in all, Nikola has a lot to say for itself. 

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 68 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .