- Nikola gains 8% following deal with Saia LTL Freight
- With the SEC investigation and Tesla lawsuit still fresh in the mind of investors, how will Nikola fare in the coming months?
Today, Nikola stock is showing a premarket gain of just under 8% following a deal with freight company Saia LTL, for the implementation of 100 of Nikola’s heavy-duty electric vehicles.
If you’re an EV investor, the chances are when it comes to discussing Nikola, it’s all a bit ambiguous, to say the least. You could argue a similar precedent for most fledgling EV companies that seemingly rest on well-drawn models and pre-sale statistics, but Nikola has been the first one to actually make the news for allegations of investor fraud.
But I’m not entirely sure that this is enough for Nikola. Sure, the electric truck market is still very much an open playing field compared to the heavy-laden battlefield of consumer vehicles; but as mentioned in a previous article – Nikola easily walks the walk, but is yet to really talk the talk.
There are multiple screws loose in Nikola’s framework; hence why investors' enthusiasm has continued to trail off shortly after the company’s brief post-IPO rally. The first one being, the $125M SEC pay-off to manage accusations of misguiding investors, but the second; Nikola raising a $2B lawsuit against Tesla for apparent copying of patented designs…
Nikola needs to continue to secure deals with companies like Saia in order to really secure their place as relevant in the emerging market. Fraud allegations, competitive lawsuits, and petty remarks are all signals of a red hot landscape; but as Ford has proved, we need to see much more than gossip.