NIKOLA Motors Company & Stock Analysis - is NKLA a buy?

Nikola had an amazing start but apparently, it was all smoke. The CEO is out and selling stock. Now they are trying to make something and rise from the ashes but can we trust it?



A bit on Nikola

Nikola Corporation is an American company that presented a number of zero-emission vehicle concepts from 2016 to 2020. The company stated on multiple occasions that it intended to take some of its concept vehicles into production in the future, including expansive claims during the time the company prepared to go public. The company reorganized and went public on June 4, 2020 through a SPAC.


As of July 2021, the reorganized company has stated that they intend to deliver the first 50 to 100 production Nikola Tre battery-electric trucks in the fourth quarter of 2021. They haven't done it so far.


Before going public they raised 500 million, with the SPAC they raised another 700 million and with warrants they raised 260+ million.


Nikola problems with the law


In September 2020, the company was under investigation by the Securities and Exchange Commission and the Department of Justice over securities fraud allegations. In July 2021, a United States federal grand jury returned an indictment against founder and former CEO Trevor Milton, but not against the company, that charged Milton with three counts of criminal fraud—for "lying about 'nearly all aspects of the business'"—and two counts of securities fraud. Stock shares in Nikola dropped and traded at ~US$12 after falling from over $65 in mid-2020, a point at which the company market valuation had exceeded that of the Ford Motor Company.


Today, the pickup truck they boosted about after the SPAC is nowhere to be found on their website and they have yet to make a profit.


The company now has a valuation of around 4.2 Billion dollars and have made partnerships with names like IVECO to produce their trucks in Ulm, Germany. At 10 usd per share, I still think its not a trust worthy stock but maybe I'm missing something.


Nikola Hindenburg Research: https://hindenburgresearch.com/nikola/

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